DaimlerChrysler To Share More Parts Among Brands

Autoparts Report, March 20, 2002

According to a report in the Detroit News, DaimlerChrysler will share more technology plus other parts among its different brands to cut costs. As pollution regulations change, "We will invent the (computer) software only once for the whole Chrysler and the whole Mercedes," Wolfgang Bernhard, chief operating officer of Chrysler, told the Detroit News at the Geneva motor show.

DaimlerChrysler is under pressure to reap more benefits from Daimler-Benz AG's 1998 acquisition of Chrysler for $36 billion, the Detroit News said. DC's recently announced Crossfire coupe will share engines and driveline components with Mercedes models.

The Detroit News, citing company executives, said that DaimlerChrysler's Chrysler and Mercedes-Benz car units, the Freightliner truck business and the Mitsubishi Motors affiliate are now in the early stages of a plan that may let most models use slight variations of parts starting in 2004.

The newspaper added that DaimlerChrysler may offer vendors incentives in the form of contracts that run as long as 12 years compared with four years now. Chrysler spends $32 billion a year on parts, and larger, longer supply contracts may help cut costs four to six percent, the Detroit News said.