Chrysler plans to cut its supply chain costs by a quarter in the next three years, a senior executive has said.
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Procurement head John Campi told the Center for Automotive Research conference in Michigan that the 25% cuts would include reduced vehicle complexity and components and stable production schedule.
The automaker last week announced a US$1.8bn refit and expansion of its Jefferson North plant in Detroit to build a more efficient Jeep Grand Cherokee successor for the 2010 model year. Increased model flexibility will be a cornerstone of the new plant.
“I’ve set an arbitrary aggressive target of 25 percent cost out of the supply chain,” Campi told the gathering in Traverse City.
“It means, between us, we have to find ways to improve our supply chain operations.”
