Not long after promising to forge strong new relations with key suppliers, Chrysler is now asking for massive cost savings from its suppliers. Forget the standard 3% cost-down, says new Chrysler Group CEO Tom LaSorda - he wants to see 10, 20, even 30%.  That's fair enough, as long as the automaker is giving suppliers sufficient room for actual innovation. Hopefully that's the case with the newfound enthusiasm for the longer-term contracts. With regards to where the parts will be sourced, LaSorda states, "If I find a part worldwide that can be built for $14 and they say, well we want to build it here for $20, it's their choice but we are only go to pay $14." Now, personally, I like to see products built where they are sold, and this is not the sort of thing that makes me want to choose a "nominally American" car over one that's actually built here with American parts but perhaps doesn't carry a domestic nameplate. But it's also increasingly clear across many industries that US consumers will not pay higher prices for the same-quality good that's built domestically, so Chrysler probably doesn't have much choice in this matter.

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