Chrysler
will achieve cost-cutting goals demanded of suppliers even though fewer than half
have complied with the plan, the Detroit Free Press reported.
About 40 percent of Chrysler Group suppliers complied with the unit’s demand
for five percent price cuts, chief operating officer Wolfgang Bernhard told
the Free Press on Tuesday.
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About half of all its suppliers negotiated smaller or later cuts, and one in
10 flatly refused to talk with the U.S. arm of DaimlerChrysler AG about prices,
the paper said.
Bernhard said the Auburn Hills group will achieve the same year-end results
as if it won the five percent concessions announced on December 7 through efforts
such as more sharing of components among more vehicle models.
The 40 percent of suppliers that agreed to the cuts are beginning to win more
business for future models, he said. The 10 percent that won’t talk will
eventually cease to be Chrysler suppliers, Bernhard told the Free Press. They’ll
be phased out over the next year or two, or as model cycles end.
