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AIAG Year 2000 Task Force Cascades Common Assessment Program

3 August 1998

AIAG Year 2000 Task Force Cascades Common Assessment Program To Sub-Tier Suppliers

    SOUTHFIELD, Mich., Aug. 3 -- To help the automotive supply
chain avoid the inherent computer problems associated with the new
millennium, the Automotive Industry Action Group's (AIAG) OEM Year 2000 Task
Force -- consisting of representatives from Chrysler Corp., General Motors
Corp., Ford Motor Co., Volvo Corp. and Toyota Motor Manufacturing North
America -- has teamed up with key tier one suppliers to implement a Year 2000
assessment program with lower tier suppliers.
    "Based on the awareness created by the original OEM Year 2000 assessment
program -- which targeted 60,000 supplier locations -- several leading tier
one suppliers requested that we extend the program to their sub-tier
suppliers," said Dick Simmons, AIAG executive director on loan from Ford Motor
Co.  "This program represents the most effective and efficient way for lower
tier suppliers to communicate their Year 2000 readiness with their customers
and ensure their continuity of business will not be disrupted by computer
problems associated with the new millennium."
    Taking a common approach to this global business problem, Simmons said,
helps to reduce cost and accelerate implementation ... by sharing experience
and using objective standards.
    The Supplier Year 2000 Task Force identified an additional 40,000
global, sub-tier supplier sites for participation in the Year 2000 assessment
program.  These sub-tier supplier locations were recently mailed a Year 2000
self-assessment packet, which included a 120-question survey to be completed
and returned to the AIAG.  The surveys will be updated by the suppliers on an
on-going basis and used for tracking Year 2000 readiness throughout the
supply chain.
    "The interactive survey database will provide sub-tier suppliers the
ability to confidentially update their surveys as their Year 2000 readiness
status changes," Simmons said.  "On behalf of the tier one suppliers involved
in the assessment program, AIAG will collect the survey information,
consolidate the data and monitor progress."
    According to Simmons, the assessment program will enable AIAG's Year 2000
readiness initiative to reach deep into the supply chain, reaching important
production, non-production and service suppliers.
    In addition, the suppliers will have access to the Year 2000 tips and
techniques database and to AIAG's Year 2000 Information Center in Southfield,
Mich. -- which offers a help-line staffed by industry professionals supplied
by Deloitte & Touche Consulting Group and PricewaterhouseCoopers LLP.
    The AIAG Year 2000 Task Force is continuing work to help suppliers with
their Year 2000 efforts and has recently established Year 2000 work groups
to focus on key areas including: financial, utilities, human resources and
plant floor equipment.  The Year 2000 Task Force is targeting the end of 1998
for industry-wide Year 2000 readiness -- allowing for testing throughout the
automotive supply chain during 1999.
    For more information on the Year 2000 assessment program, interested
parties should contact the AIAG Year 2000 Information Center at 248-799-4257.
    Founded in 1982, the AIAG is a not-for-profit trade association of nearly
1,400 automotive and truck manufacturers and their suppliers.  Originally
recognized for its efforts to standardize electronic data interchange and bar
code standards to assist tier one suppliers, the AIAG's mission has expanded
to cover all levels of the automotive supply chain as well as to include
numerous programs and initiatives aimed at improving its members' productivity
and quality.
    More information about the AIAG and its Year 2000 initiative can be found
at its website at http://www.aiag.org.