Chrysler New Business Plan
The new boss, Dan Knott, for Chrysler is making it known that Chrysler will no longer be one of those companies that will switch suppliers simply to save a nickel or dime. In the past Chrysler has been known to switch suppliers to save themselves around a dollar. Of course, this was during the time that Chrysler was doing whatever they could in order to stay afloat in the economy But, even this abrupt and far-reaching savings plan resulted in the company still having to declare bankruptcy.
Since Knott has taken over at the company, he is trying to mend those broken bridges with suppliers that Chrysler has put into place. In an effort to make Chrysler seem more business friendly, which is going to be a long process for Knott, since many suppliers have a complete distrust with Chrysler, given the way that the corporation treated them.
Knott has also devised a new plan for how Chrysler will deal with suppliers. Though he does realize that suppliers can sometimes be found for cheaper, he is not allowing Chrysler to immediately dump the supplier that they are with in order to get it somewhere else cheaper. Instead, when a product is found to be cheaper with another supplier, the current supplier has a one year grace period that they will be given to keep the business. In addition, the current supplier has thirty days in which they can come up with a proposal that matches the low price found elsewhere in order to get to keep the business from Chrysler.
This is a huge step forward for Chrysler and one that suppliers are greatly appreciating. With the past that Chrysler has many suppliers never even wanted to take the chance with the automaker because they did have such a reputation of finding the parts elsewhere and so forth. However, now they are slowly regaining that trust and proving themselves to be one of the better automakers to work with.
