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Saturday, May 17, 2008

SOUTHFIELD, Mich. - Chrysler LLC, the third-largest U.S. automaker, will reduce its costs of buying parts and materials by 25 per cent over three years, reported, citing the company's purchasing chief.

Chrysler will make car production schedules more consistent to help cut expenses for suppliers and then ask for a price reduction of 50 per cent of the money saved, John Campi, executive vice -president for procurement, said in an interview with the trade publication.

The automaker, based in Auburn Hills, Mich., won't ask for discounts until it's achieved three consecutive 30-day periods of stable production, said. Chrysler will pledge to pay the suppliers a penalty if it can't keep a consistent production schedule, with the fine increasing on subsequent offenses, said.

LINK:Chrysler cutting costs
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