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Supplying the Fiat Chrysler Group

  • December 2013
  • -
  • Supplier Business
  • -
  • 132 pages

Summary

Table of Contents

Understanding the purchasing and production operations of global OEMs is increasingly important for suppliers, as they face increasing platform consolidation and intensifying competition for new business

IHS SupplierBusiness' new Supplying the Fiat Chrysler Group Report provides a unique insight into the environment in which the OEMs make their critical sourcing decisions. The report analyses the ways in which Fiat Chrysler is moving forward in terms of models and technology and looks in-depth at what issues are affecting the OEM in terms of supply and manufacturing.

The report is based on interviews with key purchasing executives, featuring IHS Automotive’s industry standard forecasting and analysis on the following topics:
• Product and Platform Strategy
• Production Strategy
• Purchasing Strategy
• Supplier Selection
• Global Sourcing
• Pricing Policy
• Quality Management
• Technology Development
• Interviews with Key Executives
• OEM-Supplier Relations Survey Results
• SWOT Analysis
• Global Footprint
• Forward Model Programme

About this report

The future looked bleak for Chrysler when the carmaker entered bankruptcy proceedings in 2009. With an aging product range and little access to credit, it appeared to be only be a matter of time before the liquidators were called in. But having been rescued by the Fiat Group, four years on the US OEM is now experiencing one of the strongest sales periods in company history, with the cash earned being used to develop new models, improve internal efficiencies and possibly expanded production to new global regions.

Although the Fiat Chrysler Group might appear an unlikely pairing, closer inspection uncovers that the tie up makes sense on a number of levels. For example, each OEM has a series of mutually exclusive technologies that are - or will be - shared across the other company; in Fiat’s case, the Italian carmaker is an expert in fuel efficiency and lightweighting, while Chrysler can be considered a D-segment and SUV specialist. But there are also complementary elements. For example, neither company has invested great amounts in proprietary petrol/electric hybrid technologies, which means they are both free to co-develop new, highly-efficient petrol and diesel powertrains without the financial drag of supporting an additional technology stream. This has resulted in the Ram 1500 being the first light pickup in North America being offered with a diesel engine, while the Ram 2500 has a petrol/CNG bi-fuel option.

Supplying the Fiat and Chrysler Group 2013 is a full analysis of the relationship between the two OEMs, covering such elements as the top-selling models across both companies, the top 10 most-used platforms (by volume) and the combined global manufacturing footprint of Fiat and Chrysler. In addition to this, the report also examines how Purchasing across the two carmakers is being drawn closer together. By the end of 2014, it is claimed that the two OEMs will share two-thirds of all suppliers and to further take advantage of the synergies, there are plans to create a cross-company Purchasing IT network. How this will affect the value chain is covered in the report, as is the push to achieve further transparency in the supply chain and improve quality.

Currently, Fiat and Chrysler are experiencing vastly different fortunes dependent on global region, but taking into account the cyclical nature of these markets and the automotive business as a whole, this larger, combined footprint will help to balance the overall performance of both companies. Supplying the Fiat Chrysler Group examines how the two OEMs will move forward as they work together to expand brand footprints, while jointly developing new global and regionally-defined vehicles - and a new global vehicle group. In addition, the report includes interviews with group suppliers Autoliv and Robert Bosch, and also Scott Kunselman, vice-president of Purchasing and Supplier Quality at Chrysler.

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