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Chrysler Intends to Save by Using 'Imported' Parts
By Joe Thompson
To cut costs, Chrysler is outsourcing beyond North America and employing frugal plans to reduce expenses by $1,000 per vehicle.
"We are willing to import with the focus on being competitive," said Tom LaSorda, Chrysler head during the Beijing International Automotive Exhibition. LaSorda also stated that within 6-12 months, Chrysler would point out cost reductions averaging $1,000 per vehicle, a portion of which comes from outsourcing. He added, "We are going to source where we can get good low-cost components and high quality.
"LaSorda also noted that the automaker will concentrate on increasing sales beyond North America. It can be recollected that in said territory, Chrysler usually generates 85-91 percent sales.
Further, LaSorda reported talks about a production alliance with China's Chery and a non-Chinese company. However, LaSorda did not give further detailsabout the possible alliance.
Chrysler, an American automobile manufacturer, existed independently from 1925 to 1998. Then, Chrysler and its subsidiaries became part of DaimlerChrysler AG when merger with Daimler-Benz was acknowledged in 1998.
It can be recalled that last year was one of the most remarkable years for Chrysler. Last year, a bench trial in Wilmington Delaware has started. The parties of said trial are Kirk Kerkorian and DaimlerChrysler AG. It was all about the allegations about Jürgen Schrempp of Daimler Benz AG, regarding uttering lies and manipulating the Security and Exchange Commission as well as the Chrysler Corporation's shareholders. Kerkorian was one of the biggest stockholders then. Said case delved on merger of the companies as a merger of equals and not an outright acquisition. Further, the judge favored DaimlerChrysler. Nevertheless, another case was amicably settled for $300 million in 2003.
Nowadays, Chrysler takes extra effort to clear the clouds blurring its reputation. It is also concentrating on how to cut costs without compromising the quality of Chrysler car parts hence; the decision of outsourcing from other territories.
Critics in the auto industry are eyeing on the workflow and performance of Chrysler vehicles. Moreover, the automaker is struggling to put up a good fight with other automakers. Now it is devising several plans to augment its production and sales.
About the Author
Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 38 year old is also a prolific writer, contributing automotive related articles to various publications.
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