Chrysler LLC announced today that it spent $4.8 billion with minority suppliers in 2007, representing 15.5 percent of its total purchasing and an increase of $900 million from the previous year. In the last nine years, the company has increased the amount spent with minority suppliers by 182 percent, from $1.7 billion in 1998 to $4.8 billion in 2007. This significant increase reinforces Chrysler’s long- term commitment to the economic development and growth of its minority suppliers.
“Given the tremendous cost pressures facing the industry as a whole, it is heartening to see minority suppliers continue to increase their share of Chrysler business year-over-year,” said John Campi, Executive Vice President – Global Sourcing, Chrysler LLC. “Moving forward, it is imperative that Chrysler and all of its suppliers work together to collaborate on innovations and wring cost out of the supply chain. Our ability to reach these goals together and weather the economic challenges will, in some large measure, determine our future success.”
The company’s diversity supplier development initiatives extend to its Tier 1 and Tier 2 supplier base. Tier 1 suppliers are expected to source at least nine percent of their procurement through qualified minority suppliers during the 2008 calendar year.
“With the entire automotive industry facing tough economic challenges, Chrysler has never wavered in its commitment to diversity,” said Jethro Joseph, Senior Manager- Diversity Supplier Development, Chrysler LLC. “Success takes a team effort and our employees and supply base continue to hold themselves accountable to achieve diversity.”
Since 1983, Chrysler has purchased more than $38 billion from minority- owned companies and has developed a number of programs to build its minority supplier base. Chrysler continues to support several organizations geared to assisting Tier 1 suppliers achieve their minority sourcing goals, including the National Minority Supplier Development Council (NMSDC) and the Canadian Aboriginal Minority Supplier Council (CAMSC).
In 2007, Chrysler launched its Diverse Employee Initiative that aims to recognize and reward suppliers who demonstrate a commitment to diversity in their hiring processes.
About Chrysler’s Minority Programs:
Supplier Diversity Web Site
Introduced in 2005, the company’s Supplier Diversity Web site, (https://app.suppliergateway.com/chrysler) is designed to identify and register potential suppliers. For minority-owned suppliers, it serves as a resource to build relationships and understand specific procurement requirements. For Chrysler, it captures suppliers’ capabilities and experience, and helps identify potential suppliers for specific procurement needs.
In 2000 Chrysler developed the Matchmaker program, which, since its inception, has generated more than $1.3 billion in new business opportunities. The Matchmaker program was designed to pair minority and Tier 1 suppliers and encourages networking and the development of long-term partnerships.