Chrysler to Suppliers: You Think I'm Funny? Do I Amuse You in Some Way? Funny How? Funny Haha?

Robert Farago
by Robert Farago

The "run on the bank" supplier scenario we predicted for Chrysler is coming to pass. We've already reported that Chrysler's been playing silly buggers with their payment (stretching terms to keep the cash flowing flowing). And now ChryCo is beginning to face the predicted backlash. At the Traverse City management ho' down, Chrysler's executive vice president for procurement did his best Joe Pesci imitation for insolent suppliers, The Detroit Free Press and TTAC's Best and Brightest. "If a supplier wants to push us because of their fear [that we're going bankrupt], then they're violating the contract that's in place and I will take the necessary actions," John Campi intoned. "I have had suppliers come to me with a gun to my head and I say, 'I am not going to let you shut down production, but if you are serious then you have to live with the legal consequences.' And the legal consequences are not the end of it because if somebody does that, I can tell you they will not be walking around very long a supplier of choice."

Robert Farago
Robert Farago

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  • Pig_Iron Pig_Iron on Aug 17, 2008

    Dynamic88: Deming’s point #4. End lowest tender contracts Thank you for saying this, it is lost on the buyers who go on lowest price. For years I saw sales people lie outright about our products abilities in order to get the business, then it was thrown to the technical staff to deliver to the performance specification. When the product under performed or was late, engineering was blamed. Sales was never made accountable because their metric was to bring in business. Any engineering manager who protested was sent to "Special Projects" then disappeared "to persue other opportunities" and was never seen again.

  • Landcrusher Landcrusher on Aug 17, 2008

    Pig_Iron, Sales wasn't held accountable because they were doing what management wanted. Otherwise, things would have changed. The bottom line is, the people you worked for were scum. It was a bad company.

  • Toxicroach Toxicroach on Aug 17, 2008

    Shii, only 15%? A Dodge/Chryseler/Jeep in Kansas City dealer was offering 50%, 0% for 72 months, AND they would pay the sales tax on the vehicle for a lot of their models. Talk about desperation!

  • Capeplates Capeplates on Aug 18, 2008

    All these discounts being offered yet the manufacturer is still making a profit - makes you wonder what the profit margin was when the market was bouyant