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Chrysler gives suppliers a year’s grace

by David Zatz on

Dan Knott

Dan Knott, who has headed Jeep and vehicle engineering, and is now in charge of Chrysler suppliers, has instituted a change in policy for suppliers when the company finds a competitor with a lower price. The existing supplier can now get 30 days to match the competitor’s price, and a year under the existing conditions before Chrysler switches.

This Automotive News article describes the extent of the supplier-switching problem under Daimler and Cerberus.

Knott is also training his staff to pay suppliers more quickly, meet frequently with executives from supply companies, and to take personal responsibility for problems (including late payments) instead of passing blame. Knott said that his group, with 600 people, will take time to change.

Before being taken over by Daimler, Chrysler was known for good supplier relations, bringing the companies into the engineering process and providing a share of savings garnered through the SCORE program.

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