DaimlerChrysler Head of Procurement and Supply Calls for Global Growth Strategies from Minority Supplier Base

-- "Suppliers need to expand their ability to operate in many geographic locations around the world." -- "Minority suppliers have a major impact on our business and are valuable partners in the pursuit of our global strategy."

WASHINGTON, Sept. 29 -- DaimlerChrysler Executive Vice President of Procurement and Supply, Tom Sidlik, emphasized today that minority businesses must prepare to conduct and compete for business on a global scale in order to achieve sustainability and growth. Sidlik, a member of DaimlerChrysler's Board of Management, stressed the need for worldwide operational capabilities during an address to members of the Minority Business Development Agency at the Washington, D.C. Omni Shoreham.

During his speech, Sidlik pointed out DaimlerChrysler's substantial global presence as one of the world's leading automotive and service companies with manufacturing facilities in 37 countries, products sold in more than 200 countries, and services and products purchased from "every region of the globe."

DaimlerChrysler, in conjunction with its alliance partners, purchases $140 billion of production materials and services annually. "As we move around the world, we're finding good suppliers in China, Korea and other countries. These are the companies suppliers need to compete with for our business," Sidlik said.

"Global businesses want to deal with global businesses. Size -- whether developed organically or through mergers and alliances -- matters more and more," added Sidlik.

Sidlik's prescription to minority suppliers and businesses for successful global expansion lie in the ability to effectively access financial capital, human capital and technology. In addition, Sidlik stated the importance of nurturing smaller minority businesses along the way. "Those of you who have already developed growth strategies have an obligation to individuals who have a dream but no capital to make those dreams a reality," he said.

"You'll not only continue your own success, but also become an important contributor to building sustainable strength in both the minority business community and in our diverse international economy."

Sidlik outlined DaimlerChrysler's ongoing commitment to minority sourcing since the creation of its Diversity Supplier Development department in 1983. "We have placed over $21 billion with minority businesses over the last 20 years," Sidlik stated. "And in 2002 alone, we placed $3 billion worth of business with minority suppliers, approximately 11 percent of our annual purchases at the Chrysler Group."

A specific DaimlerChrysler program designed to expand the competencies and scale of minority suppliers is the Minority Enterprise Initiative (MEI). Launched in 2000 with Comerica Bank and ASG Renaissance, the MEI provides a comprehensive business assessment of selected minority suppliers. There are currently 40 suppliers in the program.

"Suppliers in the program have increased their business with DaimlerChrysler by an average of 26 percent," said Sidlik. "That represents $200 million in new business for these suppliers."

To make that $200 million a reality, Comerica Bank has written $95 million in new loans for participating suppliers. "The point is -- in Detroit -- we know how to make business happen between lending institutions and industry," Sidlik added.

DaimlerChrysler actively supports organizations that provide a link to increase business activity between corporate America and the minority business community. This includes the Michigan Minority Business Development Council (MMBDC) and National Minority Supplier Development Council (NMSDC).

DaimlerChrysler has been recognized by the MMBDC for the past three years as "Corporation of the Year" and was honored this year by the NMSDC with its prestigious "Leadership Award." In total, DaimlerChrysler has won 18 major awards from minority organizations since 2000.

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