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CHRYSLER AND ITS SUPPLIERS ARE PARTNERS, STALLKAMP TELLS MANAGEMENT SEMINAR

 CHRYSLER AND ITS SUPPLIERS ARE PARTNERS,
 STALLKAMP TELLS MANAGEMENT SEMINAR
 TRAVERSE CITY, Mich., Aug. 7 /PRNewswire/ -- The partnerships that Chrysler Corporation (NYSE: C) has formed with its suppliers are a key factor in the company's vehicle development renaissance, according to Thomas T. Stallkamp, Chrysler vice president of Procurement and Supply and general manager - Large Car Operations.
 "We knew from the start that suppliers were key, because, to improve our products, we had to first improve our relations with suppliers," Stallkamp told auto industry executives at the University of Michigan Automotive Management Briefing here today.
 "I've been in this business for 20 years," Stallkamp said, "and for most of them, Chrysler made a strong effort to control its supply base.
 "Within the past few years, we believe we've drastically changed that relationship. Today, the Chrysler-supplier interface is based on empowerment, trust, long-term commitments and shared cost savings."
 Stallkamp said that Chrysler "empowered" suppliers by turning over to them greater responsibility for designing, engineering and delivering components and systems. When suppliers became members of Chrysler's platform vehicle development teams, they gained better control of their costs and were able to "make intelligent capital investments."
 Using a program called SCORE (Supplier Cost Reduction Effort), suppliers offered ideas that have saved Chrysler $161 million since 1989.
 Because of the mutual trust between Chrysler and its key suppliers, the company is now implementing a program to help suppliers reduce their costs.
 "We said we do not want to reduce supplier profit margins and we mean it," Stallkamp said. "We want suppliers to be profitable and healthy so that the money will be reinvested back in Chrysler business."
 Stallkamp said steps are under way to enhance the relationship even more. Plans call for suppliers to be brought into the vehicle development process when vehicles are conceived, to do more research and development and to work with second- and third-tier suppliers to develop, assemble and deliver large, multi-part components to Chrysler.
 "Chrysler realizes that this is not a top-down enterprise, where we give orders and dictate our program," Stallkamp said. "Instead, ours is an extended enterprise, like an interlocking chain that includes us, our suppliers, our employees, and our dealers. We are all part of an interlocking chain dedicated to delivering the best possible product to the customer."
 -0- 8/7/92
 /CONTACT: Tom Houston of Chrysler, 313-956-2894/
 (C) CO: Chrysler Corporation ST: Michigan IN: AUT SU:


ML -- DE013 -- 8065 08/07/92 13:59 EDT
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Publication:PR Newswire
Date:Aug 7, 1992
Words:409
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