Tuesday, August 30, 2005
Chrysler wants suppliers to help cut costs
Incoming chief executive LaSorda said he is shopping for big percentage reductions.
By Jeff Bennett / Bloomberg News
DaimlerChrysler AG’s Chrysler wants suppliers to provide technologies that can cut costs as much as 30 percent because of pressure to hold down vehicle prices, said Thomas LaSorda, the unit’s incoming chief executive.
“What we are saying to suppliers is bring us your innovation, bring us your technology but don’t just tell us it will give a 3 percent savings,” LaSorda told reporters at a conference in Detroit Monday. “Break through that, get creative and innovative and bring us the stuff that can save us 10, 20 or 30 percent.”
Chrysler is seeking to build on sales gains of 7.7 percent this year through July, more than the industry’s 4.2 percent rise. Chrysler sales surged 27 percent last month as it followed General Motors Corp. in offering employee prices to all buyers. LaSorda wants suppliers to contribute to lower manufacturing costs and improvements such as increased fuel efficiency.