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Chrysler speeds supplier payday
Chrysler speeds supplier payday
Posted on Tuesday, January 19th, 2010 at 12:01 PM EST.(Employee News)
Chrysler Group is speeding up payments for some engineering, design and development work and taking other actions to improve relations with suppliers, the Automotive News reported.
The new policies—to be fully rolled out by the end of January—will apply mainly to parts Chrysler will buy for compact and mid-sized cars based on a Fiat platform, the trade paper said. Chrysler projects volumes to reach about 700,000 by 2014, the Automotive News said. The company also will use the approach on other new programs, the paper said.
Under new, Fiat-led management, Chrysler is taking a series of steps to reverse its reputation in dealing with suppliers, the paper said. The story said changes, which Chrysler has discussed with its advisory council, include:
– Paying some suppliers upfront for costly advance engineering, design and development work on certain new Chrysler programs.
– Resolving outstanding payment claims faster.
– Paying suppliers in chunks at predetermined milestones in the life of the program. (Automotive News)
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Rick
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