I- Presentation of the company
The company was founded by Walter Chrysler (1875–1940) on June 6, 1925. The
headquarters are in Auburn Hills in the Michigan.
The brand was at the beginning a premium luxury position competing with the brands
Cadillac. Chrysler was the top brand in the portfolio of what was then known as Chrysler
Chrysler's positioning changed several times over the years. Indeed, The Chrysler brand was
originally a premium luxury position competing with Cadillac and Lincoln through the cars
Imperial.Then, Chrysler's positioning of the Chrysler brand towards a mid-price brand caused
Chrysler to kill the ...view middle of the document...
At the beginning of 2012, analysts predicted that
American drivers would buy a million more cars this year, perhaps hitting the 14 million mark after 12.8 million purchases last year.
The two main companies are Ford and Chrysler. But Chrysler showed the biggest growth of all. The automaker is expected to sell about 126,000 cars in February, or 25% more than in January and 27% more than in February 2011.
Moreover, Chrysler was an interesting choice thanks to its old and well known desire to improve its relations with its supplier and to control as efficient as possible the supply chain to face the foreign competition. For example, since the 1970s American automakers have been facing strong global competition both at home and abroad. Japanese carmakers in particular made a significant impact on the industry by introducing smaller, less expensive, and more fuel-efficient in the United States. This coincided with the oil crisis, which resulted in higher gasoline prices and a shift in consumer tastes toward greater fuel efficiency. Other advantages of the Japanese automakers resulted from their use of just-in-time (JIT) inventory controls, modern manufacturing techniques, quality control and management practices. In order to counter to the « land of the rising sun », Chrysler and the others american companies had to find new solutions.
We can quote the time of Recovery and Restructuring in the 1980s when Chrysler decided to develop on a limited budget, the Dodge Aries and the Plymouth Reliant, code-named the "K-cars". Cars were designed to compete with imports and enjoyed early sales success, which Chrysler rode to profitability in 1982. Chrysler had cut its inventories by $1 billion, reduced white-collar staff by 50 percent, and cut its break-even point by 50 percent in drastic efforts to manage its finances.
Moreover, in 1989, through benchmarking of competitors, listening to suppliers, and experimenting with new ideas and programs, Chrysler's management gradually developed a vision of the changes they needed to make. It was apparent that most delays and cost overruns were finally attributable to the traditional sequential design approach that Chrysler followed all these years, with different functional groups responsible for different steps in the product development process. This resulted in poor coordination and conflicts between the functional groups, often requiring redesign and retooling. A great deal of time was
wasted arguing and arbitrating, and every fight that couldn't be resolved had to be decided by a senior executive. What was needed was a new approach that combined individuals from the different functional groups into an integrated product development team.
Another critical element of this process was the relationship between Chrysler and its suppliers. Suppliers were at the same time both essential to and largely uninvolved in the product development process. About two-thirds of the components Chrysler uses in manufacturing...