DaimlerChrysler Offers Global Business Opportunities to World-Class Suppliers

DaimlerChrysler Offers Global Business Opportunities to World-Class Suppliers

Peter Rosenfeld, Executive Vice President — Procurement & Supply, Chrysler Group, emphasizes the contribution of the supply base to the company’s success

* DaimlerChrysler’s model of supplier relationships is based on objective performance measurements
* Best performing suppliers in quality, technology, systems cost and supply win new contracts
* DENSO, Johnson Controls and Visteon named suppliers for a 2009 light truck program

Auburn Hills, Mich., Feb 24, 2006 –

In a speech addressing automotive suppliers from Canada and the U.S., Peter Rosenfeld, Executive Vice President — Procurement & Supply, Chrysler Group, explained that DaimlerChrysler has created a model to manage its relations with suppliers, which helps both sides to better withstand global economic challenges in the automotive industry.

“DaimlerChrysler places a high strategic importance on a healthy supply base and understands that no automaker can win in today’s global marketplace without the help of its suppliers,” Rosenfeld said. The unique model of DaimlerChrysler is based on performance measurements which are objective and transparent and award new business to the best performing suppliers in quality, technology, systems cost and supply.

“DaimlerChrysler’s goal is to develop deeper relationships and provide more opportunities to suppliers that are proven performers,” Rosenfeld explained. Closer relationships and collaboration with suppliers include their early involvement in product development and leveraging the suppliers’ in-depth market research and knowledge of customer tastes. These efforts ultimately lead to cost improvements, higher customer satisfaction and innovative and appealing vehicles.

Rosenfeld named DENSO, Johnson Controls (JCI) and Visteon as three examples of companies given early program involvement based on their performance in DaimlerChrysler’s measurement system. DENSO has been named as supplier for the thermal system on a 2009 light truck program. JCI and Visteon were awarded the interior business on the same program. These examples showcase, that “for those suppliers that perform at high levels, the opportunities for growth are real and substantial,” Rosenfeld said.

In his speech, Rosenfeld identified global overcapacity in the automotive industry, high raw material and transportation costs and financial instabilities in the supply base as three main challenges, which affect OEMs and suppliers at the same time. He pointed out that neither OEMs nor suppliers are in control of most of the economic forces driving up expenses, but “DaimlerChrysler is doing its best to mitigate the cost pressures by leveraging its global size and by working internally and with its supplier partners to identify productivity and efficiency improvements to offset this challenges.”

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