At the Management Briefing Seminars on Friday, Chrysler LLC’s purchasing chief John Campi spoke about new approach to dealing with the automaker’s suppliers in order to maintain good relationships.

The purchasing chief also announced the automaker’s goal to cut its supply costs by 25 percent within three years with a new approach to launch a “supplier of choice” program in which Chrysler will have not more than ten suppliers. The suppliers will become partners of the automaker in the development for vehicles they supply.

Campi however said that Chrysler has already named the Japan-based Denso Corp. as the first “supplier of choice.” According to Campi, as a partner, Denso will  participate fully in product development on the programs it supplies and also briefed  that because of the supplier’s global capabilities it won the designation.
 

Chrysler will have about ten suppliers in the select group and the automaker is likely to reveal the other suppliers’ names within next 30 days.

The automaker has about 300 important component suppliers out of about 800 that are basically North America-centric. And out of the 300 suppliers, 200 to 250 will remain long-term suppliers, including 100 new suppliers, said Campi.

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