Chrysler’s new plan to “balance supplier purchasing globally” by buying an additional EUR3.8bn ($5bn) of materials from “low-cost sources” does not necessarily mean shopping outside North America, according to CEO Tom La Sorda.
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Answering questions following the presentation of the automaker’s three-year restructuring plan, La Sorda said: “We need to take out $1.5bn of material costs over the next three years. One of the initiatives is to go to low-cost sourcing. That could be right in this [NAFTA] region or other regions of the world.”
He said the task facing the automaker’s purchasing and supply team was “to get competitive parts pricing with high quality and great technology”.
“If that’s here in our own back yard, I’m prepared to take it, if it’s somewhere else we’re going to be prepared to look at it.
“Bottom line, this is a competitive area and the supply base is growing including [in North America]. Quite frankly it’s a global supply base today and we would be looking in all regions including our own to get low cost.
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By GlobalDataLa Sorda added that Chrysler would work with each supplier “to be competitive in global pricing”.
