Chrysler Group Supplier Cost Reduction Program (A)

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Case

Reference no. UVA-OM-1064

Subject category: Production and Operations Management

Authors: Edward W Davis (Darden School of Business, University of Virginia); P Trimmer (University of Virginia)

Published by: Darden Business Publishing

Originally published in: 2003

Version: 20 January 2017

Revision date: 30-Jan-2017

Length: 20 pages

Data source: Published sources

Topics: Operations management; Program management; Cost savings; Joint sharing of cost savings; Merger; Marketing; B2B marketing & channels; Logistics & supply chain; Manufacturing; Operations strategy

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Abstract

This is part of a case series. Chrysler's innovative supplier cost reduction (SCORE) program had made over USD7 billion in savings for Chrysler during the 1990s, but issues of program management are raised after the 1998 merger with Daimler Benz. Prompted by worsening automotive industry conditions and Chrysler's third-quarter losses in 2000 of over USD500 million, the new Daimler-Chrysler management team is considering major changes in the SCORE program for 2001.

Industries:

Automobile; Automotive