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Chrysler reportedly to “insource”

by David Zatz on

Sources have told us that Chrysler intends to bring more production in-house, after gaffes by suppliers resulted in shortages of Pentastar V6 engines.

Outsourcing after Chrysler was absorbed by Daimler-Benz resulted in the alleged delays of the second generation Hemi V8 when Chinese camshafts failed; in dead-on-arrival Chinese batteries; and in the loss of the respected New Venture Gear and Huntsville electronics plants. Problems accelerated after Cerberus took over and installed a head of purchasing who had been known for a preference for Chinese production.

While Mercedes tended to lean on outside suppliers much more than the old Chrysler Corporation, Fiat tends to be more self-reliant. Even if there had not been supplier issues, Chrysler may have stopped the outsourcing trend. However, it appears that at least some engine parts will actively be brought back to American production within Chrysler’s own facilities.

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