Mercedes will share cost cuts with its suppliers

Stuttgart. Mercedes Car Group has almost finalized a "supplier performance agreement" with its main suppliers.

Although suppliers were expected to be squeezed on prices, a Mercedes spokesman said that cost reductions should be shared equally between the automaker and its suppliers through process and cost optimizations.

Most of Mercedes Car Group's 100 main suppliers, representing 80 percent of the group's annual purchasing volume of 18 billion euros, have signed the agreement which is valid to 2005.

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