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CHRYSLER, FORD, GM AND AIAG DEVELOP COMMON CONTENT REPORTING FORMAT FOR NAFTA, AALA AND CAFE

 TRAVERSE CITY, Mich., Aug. 5 /PRNewswire/ -- Addressing an audience of over 1,000 automotive executives at the annual University of Michigan Management Briefing, Chrysler Vice President of Procurement and Supply and General Manager - Large Car Operations Tom Stallkamp announced that the AIAG/OEM Content Reporting Task Force has developed a common reporting format and implementation and training tools to help supplier companies cope with the impending vehicle content reporting rules imposed by the North American Free Trade Agreement (NAFTA) and other government regulations. The task force of representatives from Chrysler, Ford and General Motors, working under the auspices of the Automotive Industry Action Group (AIAG), has been racing to create the format and training materials since April.
 In May the AIAG sent a letter signed by the Big Three's top purchasing executives -- Chrysler's Thomas Stallkamp, Ford's Norman Ehlers and General Motors' Richard Wagoner Jr. -- to some 10,000 automotive suppliers, alerting them that detailed vehicle content reporting may start as early as October 1993 (Automotive News, 6-28-93).
 The letter explained that the task force was working to develop a common content reporting format to make it easier for suppliers to provide automakers with the information required by NAFTA, American Automobile Labeling Act (AALA), and Corporate Average Fuel Economy (CAFE) reporting requirements.
 A second communication dated Aug. 2 provides additional information and direction. It asks each supplier company to immediately designate a content reporting coordinator responsible for compliance efforts. It also urges suppliers to implement business procedures that support the requirements as quickly as possible and to alert their suppliers to content reporting requirements. The reporting process has been designed so that suppliers can use the same processes, tools and forms to gather information from their suppliers. The letter also announces that training materials and implementation tools will be available through the AIAG by mid-September.
 GPS Technologies, a Troy, Mich.-based professional training company, has been selected to develop the training and implementation tools. The materials will include:
 -- A self-paced workbook with background on the legal requirements, content reporting forms, instructions, reporting techniques and sample problems.
 -- Computer-based training and reporting software that includes a database for collecting component content information and printing the necessary forms.
 -- A videotape of U.S., Canadian and Mexican officials, and Big Three and supplier executives explaining the requirements and their impact on the automotive industry.
 The AIAG also has developed an electronic data interchange (EDI) transaction set that will allow companies to exchange vehicle content information via computers.
 Stallkamp said the commonized reporting format and training materials are examples of the AIAG's efforts to improve the productivity of automotive manufacturers and suppliers through joint industry collaboration.
 "Without this common format and the training and implementation materials, the entire automotive industry would incur onerous costs and a reduction in efficiency in order to comply with the requirements," said Stallkamp. "Content reporting originates at the part level -- that's 50,000 parts for Chrysler. That's not a problem for suppliers doing business with only one of the Big Three. But it's obvious that suppliers who sell to all of us would have to use three different formats to report their content. With this common format, the entire industry will benefit because the impact on the suppliers and manufacturers is minimized."
 Prices for the training and implementation materials are being finalized. The training materials and implementation tools will be introduced at the AIAG's AUTO-TECH 93 supplier conference, Sept. 14-16 at Detroit's Cobo Conference and Exhibition Center. For more information, contact AIAG at 313-358-3570.
 -0- 08/05/93
 CONTACT: Sharon Schwank of AIAG, 313-358-3570; or Michael P. Smith of Madison Communications, 313-822-6532, for AIAG
 (C F GM) CO: AUTOMOTIVE INDUSTRY ACTION GROUP; CHRYSLER ORPORATION;
 FORD MOTOR COMPANY; GENERAL MOTORS CORPORATION


IN: AUT ST: MI

-- DE038 -- X376 08/05/93
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Date:Aug 5, 1993
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