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Suppliers Team with Chrysler for $2.1 Billion in Cost Savings

5 August 1998

Suppliers Team with Chrysler for $2.1 Billion in Cost Savings

    AUBURN HILLS, Mich., August 4 -- Chrysler Corporation
announced today that it achieved $2.1 billion in cost savings
through its 1998 SCORE (Supplier COst Reduction Effort) campaign, up $900
million from last year's $1.2 billion total.  The $2.1 billion in savings also
represents a $600 million increase above its original goal of $1.5 billion for
the 1998 model year.
    Established by the automaker in 1989, SCORE challenges suppliers in
Chrysler's Extended Enterprise to continuously seek out and identify
opportunities to eliminate waste in the vehicle manufacturing process.
Cumulatively, Chrysler has achieved $6 billion in cost savings through SCORE
since its inception.
    "The momentum of the SCORE program, both internally at Chrysler and with
our supplier partners, continues to accelerate," said Thomas W. Sidlik,
Executive Vice President, Procurement and Supply, Chrysler Corporation.  "Our
SCORE effort proves that mutually constructive partnerships with suppliers are
a key element in reducing costs and improving quality.  Without question, our
suppliers and the group of Chrysler employees who work directly with them
should take full credit for this year's achievement."
    Through SCORE, suppliers are encouraged to submit proposals designed to
reduce costs in a variety of areas including design, manufacturing, logistics,
sourcing and administrative transactions.  Chrysler continuously monitors and
measures SCORE proposals submitted by suppliers in the following areas:
Interior, Exterior, Chassis, Powertrain, Electrical and Body-in-White, as well
as by Platform and non-production commodities.
    "Every week, our suppliers submit more than 100 ideas, or proposals, which
offer practical ways for us to reduce costs," said Sidlik.  "We're constantly
working with our suppliers as teammates to discover new ways to be more
efficient while mutually achieving cost reductions."
     Since the program was introduced, Chrysler has evaluated more than 34,598
supplier-submitted proposals.  In addition, the average processing time for
proposals has dropped from 199 days in 1993 to 59 days in 1998.