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Supplying Chrysler

SupplierBusiness, August 2011, Pages: 87

The Supplying Chrysler Report provides detailed analysis of this revitalised automaker's procurement strategies. The report assesses the financials of the company and goes on to provide a thorough analysis of its product, platform manufacturing and purchasing strategies. It goes on to provide a thorough examination of Chrysler's methods and practices with regard to supplier selection, global sourcing, pricing policy, quality management and technology.

Results from the recent SupplierBusiness OEM Supplier Relations Survey are included along with a SWOT analysis and a rendering of Chrysler's forward model program and its major suppliers by component sector.

Background to this Research

A series of unsuccessful turnaround managements, an uncompetitive vehicle line-up in the face of high fuel prices and the degrading of the business environment in the US, triggered the dramatic descent of Chrysler into bankruptcy and a crisis in relations with its supply base. This event marked a new era for what once was a Detroit star and icon of the North American automotive industry as a whole.

Now majority-owned by its Italian partner Fiat, Chrysler is in the process of revving up its business with the injection of Fiat know-how in the powertrain field, improving its relationships with suppliers and installing a new and recently empowered management team which has the challenging task of revamping Chrysler with more competitive product, creating synergies across the Atlantic and beyond and efficient sharing of global platforms.

OVERVIEW
OVERALL SALES
FINANCIALS

PRODUCT AND PLATFORM STRATEGY
PRODUCT STRATEGY OVERVIEW
MAJOR PROGRAMS
PLATFORM STRATEGY
MAJOR PLATFORMS
COMPONENT SHARING, STANDARDISATION AND CARRYOVER
VOLUME PLANNING
PRODUCTION STRATEGY
MANUFACTURING NETWORK & FOOTPRINT
PRODUCTION STRATEGY OVERVIEW
Western Europe
Eastern Europe
Middle East and Africa
Asia
ASEAN
South America
North America
INTERNAL SUPPLY NETWORK
MODULARISATION STRATEGY
SUPPLIER PARKS
CLUSTER OF REFERENCE
MANUFACTURING STRATEGY AND EFFICIENCY PLANS

PURCHASING STRATEGY
PURCHASING STRATEGY OVERVIEW
LEVEL OF VERTICAL INTEGRATION AND OUTSOURCING
PURCHASING ORGANISATION
PURCHASING OFFICES
KEY PURCHASING PERSONNEL
PURCHASING SPENDING

SUPPLIER SELECTION
CURRENT SUPPLY BASE AND DEVELOPMENTS
MAJOR AND STRATEGIC SUPPLIERS
OPENNESS TO NEW SUPPLIERS
SUPPLIER SELECTION CRITERIA AND BIASES

GLOBAL SOURCING
APPROACH
MAJOR AREAS
Eastern Europe
Asia
ASEAN
North America

PRICING POLICY
PRICE REDUCTION PLANS AND PRACTICES
PAYMENT TERMS
COST REDUCTION PROGRAMS
RAW MATERIAL PRICES

QUALITY MANAGEMENT
QUALITY LEVEL
INTEGRATION IN PRODUCT DEVELOPMENT
QUALITY MANAGEMENT SYSTEM
MANAGEMENT OF SUB-SUPPLIERS
QUALITY AWARDS

TECHNOLOGY
TECHNOLOGICAL POSITIONING
R&D SPENDING
R&D ORGANISATION
ACCESS TO SUPPLIERS' TECHNOLOGY
AREAS OF FOCUS
APPROACH TO ELECTRIFICATION AND FUEL-CELLS
MANAGEMENT OF VEHICLE DEVELOPMENT
QUALITY MANAGEMENT SYSTEM

OEM SURVEY RESULTS
SURE INDEX 2006 TO 2010
PSA SURE INDEX BY SECTOR
NEGOTIATIONS
Time-consuming negotiations
Demands for price reductions
Payment terms
Keeping agreements on price
Willingnesss to reward cost-saving ideas
Willingnesss to pay for development costs
Opportunities for ROI
QUALITY
Demands to achieve high quality
Demands for testing and validation
Product liability guarantees
TECHNOLOGY
Demands for technology
Technical competence
ORGANISATION
Quality of communication
Support in avoiding problems
Quality and stability of volume planning
Preparation for model launches
Level of redesign required
TRUST
Trust in commercial partnership
Level of IP protection
ATTRACTIVENESS
Attractiveness
Long-term prospects
Openness to new suppliers
More or less business

SWOT ANALYSIS OF SUPPLYING TOYOTA

GLOBAL FOOTPRINT

FORWARD MODEL PROGRAM

MAJOR SUPPLIERS BY COMPONENT SECTOR
CHASSIS/UNDERBODY
ELECTRICAL/ELECTRONIC
EXTERIOR
INTERIOR
POWERTRAIN

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