Chrysler's new executive vice president of procurement and supply Simon Boag says any significant drop in auto sales resulting from the implosion of the sub-prime mortgage market will have major repercussions for suppliers. Many auto component suppliers are still barely solvent even after the spate of bankruptcies in recent years and a major shock wouldn't be helpful. Boag is still building up the Chrysler purchasing organization after the split from Daimler but the two companies plan to continue working closely on purchasing.
The companies will use their combined volumes to try and leverage better prices on commodities and parts. Most automakers are also relying on suppliers for technology that will help improve efficiency and cut emissions in the next few years and Chrysler and Daimler plan to collaborate on that as well. Chrysler also plans to continue using Daimler's diesel expertise to expand their diesel offerings in the next few years. The Jeep Grand Cherokee already has a Mercedes diesel and other Bluetec diesels will be added probably including the newest 2.2L diesel four cylinder.

[Source: Automotive News - Sub. req'd]


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