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Discussion Starter #1 (Edited)


FCA has announced that it will no longer hold its purchasing staff to individual cost-saving goals when dealing with suppliers.

The original goals had handcuffed staffers when suppliers have sought pricing relief. FCA is notoriously hard on its suppliers, which may or may not be factored into recent quality SNAFU's from Auburn Hills.

FCA said the buyers will not work in teams who will work cooperatively to meet company goals. It's expected that buyers will begin selecting higher quality components as it seems compensation won't be tied exclusively to savings.

Tom Finelli, FCA's VP for Purchasing and Supplier Quality said “This sort of hit us across the face a few weeks ago, we realized that our relations with suppliers were positive at the leadership level, but were struggling at the buyer level.”

This marks a fundamental shift in FCA's purchasing methodology. Previously cost was the main hurdle for suppliers to keep themselves in consideration, now they will focus on component quality as a consumer would.

FCA is in dire need of shoring up their supplier relations, Planning Perspectives Inc. have noted that FCA is slow to make payments and unwilling to help suppliers cut costs. The changes will take effect in early 2016.
 

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ok, next question. How does this affect consumers...will FCA be willing to eat the increased supplier costs and take it off their own margins? doubtful, FCA has some of the thinest margins int he industry right now... who pays.. us probably...
 

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I was reading they expect to recoup the extra cost in decreased long term costs (warranty's, recalls) and such. So hopefully the prices won't go higher
 

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The costs can't be as bad as the amount they lost from the 2 Million RAM recall incident. That's replacing the sensor and steering wheel harness of 2 Million Rams.
 

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The real question is if this will improve quality. Because FCA needs that right now, and trying to make a change doesn't mean that it will end up having an actual affect.
 

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If they start off campaigns to put that idea out into the public then it might be a sign of it holding truth, ultimately we'll have to see how it does in the real world with their products.
 

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The real question is if this will improve quality. Because FCA needs that right now, and trying to make a change doesn't mean that it will end up having an actual affect.
They did state that "buyers will begin selecting higher quality components" so I would assume that the end product will be of a higher quality than what was previously put out.
 

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The real question is if this will improve quality. Because FCA needs that right now, and trying to make a change doesn't mean that it will end up having an actual affect.
but not trying to make changes guarantees no changes will be made...
 
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