Chrysler Group Increases Purchases From Minority Suppliers in 2005
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6700 Lynch Rd.
Detroit, MI, 48288
Press release date: February 20, 2006
AUBURN HILLS, Mich., Feb. 20 / -- Chrysler Group announced today that it spent $3.8 billion with minority suppliers in 2005, representing 13 percent of its total purchasing and an increase of $400 million from the previous year. In the last seven years, the company has more than doubled dollars spent with minority suppliers, from $1.7 billion in 1998 to $3.8 billion in 2005. This significant increase demonstrates Chrysler Group's long-term commitment to the economic development and growth of its minority suppliers.
"Chrysler Group has provided long-standing support to minority-owned suppliers and will continue to create innovative initiatives and opportunities that leverage their sustainability and growth," said Peter Rosenfeld, Executive Vice President - Procurement & Supply, Chrysler Group. "Chrysler Group measures suppliers with objectivity and transparency. The companies which perform best in quality, technology, systems cost and supply are winning new business contracts." 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 eight percent of their procurement through qualified minority suppliers during the 2006 calendar year. Chrysler Group supports several organizations geared to assisting Tier 1 suppliers achieve these goals, including the National Minority Supplier Development Council (NMSDC) and the Canadian Aboriginal Minority Supplier Council (CAMSC). In fact, the Chrysler Group helped establish the CAMSC organization in 2004. Next week the company is hosting CAMSC and a number of Canadian suppliers to help educate businesses on the importance of supplier diversification.
"Aboriginal and minority firms are proving their worth over and over again," said Jethro Joseph, Senior Manager - Diversity Supplier Development, Chrysler Group. "With the creation of CAMSC, we are able to promote purchasing from Aboriginal and minority enterprises globally."
Since 1983, Chrysler Group has purchased more than $31 billion from minority-owned companies and has developed a number of programs to build its minority supplier base. Those include a new supplier diversity Web site (http://supplierdiversity.daimlerchrysler.com/), Chrysler Group's Matchmaker program and the Minority Enterprise Initiative (MEI).
About Chrysler Group's Minority Programs Supplier Diversity Web Site Introduced in 2005, the company's Supplier Diversity Web site 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 the Chrysler Group, it captures suppliers' capabilities and experience, and helps identify potential suppliers for specific procurement needs.
Matchmaker In 2000, Chrysler Group developed the Matchmaker program, which, since its inception, has generated more than $1 billion in new business opportunities. The Matchmaker program was designed to pair minority and Tier One suppliers and encourage networking and the development of long-term partnerships.
Minority Enterprise Initiative (MEI) The much-heralded Minority Enterprise Initiative is one of the first programs to link auto manufacturers with minority suppliers and a financial institution (Comerica Bank), and one of the only automotive initiatives to address all aspects of a supplier's business. MEI was developed to help minority suppliers improve technical capabilities and increase quality and performance.
Results of this program show that participating suppliers have increased their business with Chrysler Group by an average of 8 percent per year -- which is more than 400 million in new business for minority companies. In addition, the MEI program has generated more than $95 million in new capital loans for suppliers through Comerica Bank.
The Chrysler Group's diversity initiatives have been recognized by several leading publications and organizations in 2005, including being recognized with a Mosaic Award from the American Advertising Federation for the company's supplier development program, named one of Hispanic Trends Magazine's "Top 50 Corporations for Supplier Diversity", Black Enterprise Magazine's "30 Best Companies for Supplier & Employee Diversity", the Ohio Governor's Minority Business Development Recognition Award and the company has received the National Minority Supplier Development Council's "Corporation of the Year" award several times. In addition, Jethro Joseph, Senior Manager of Minority Supplier Development also received the 2005 Hispanic Advocate Award from the Michigan Hispanic Chamber of Commerce and the Corporate Supplier Diversity Advocate Award from Tuck School of Business Dartmouth College.
Peter Rosenfeld will also serve as Chairman of the Michigan Minority Business Development Council on behalf of DaimlerChrysler for 2006 and 2007.
Source: Chrysler Group
CONTACT: Angela Ford, +1-248-512-2986 or firstname.lastname@example.org, or Michele Tinson, +1-248-512-0366, or email@example.com, both of Chrysler Group
Web site: http://supplierdiversity.daimlerchrysler.com/ http://daimlerchrysler.com/