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2015 Chrysler 200: insourcing for quality

by David Zatz on

Chrysler’s “re-insourcing” efforts, some of which have been covered by Allpar in the past, have continued with the new 2015 Chrysler 200. In a recent factory tour, Sterling Heights managers talked about a new internal sequencing center, which added 206 jobs to the company (taking them from a supplier). Building the Chrysler 200 rear suspension internally added 18 more jobs.

Overall, 2015 Chrysler 200 “in-sourcing” has added around 800 jobs to the Sterling Heights assembly plant.

The stated reasons for bringing processes back into Chrysler have included control and quality, but a large part of the change appears to simply be a difference in philosophy between Daimler and Cerberus on one hand, and Fiat on the other. Daimler-Benz much preferred outsourcing, at Mercedes as well as Chrysler; Cerberus’s Bob Nardelli carried over his Home Depot preferences for Chinese outsourcing, including brake rotors and batteries.  Fiat tends to believe in the other extreme, preferring greater control of the supply chain.

The in-sourcing process started in 2009 continues today, as Chrysler brings more manufacturing jobs back to the United States and, in some cases, transfers them back to the company itself. While the move increases some costs, such as wages, it avoids others, such as suppliers’ executive/shareholder overhead; and, if quality can be increased by bringing key processes in-house, it will cut back on warranty costs. In the long run, many insiders expect the new 2015 Chrysler 200 to have substantially higher reliability and out-of-the-plant freedom from defects, which will increase its reputation and credibility, and lead to the ability to charge a premium price — without major incentives.

Find and unlock all six features to earn 10 additional entries for a chance to win in the “Unlock the 200” contest. The grand prize is a new 2015 Chrysler 200 two-year lease and $10,000 in cash. The first prize, going to two winners, is a one-year lease plus $5,000 in cash. Two hundred second-prize winners will get $200 Visa gift cards. Two hundred dealer/employee winners will get Chrysler 200-branded T-shirts.

 

You have found a feature of the all-new 2015 Chrysler 200 - Click to unlock for a chance to win

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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