TRAVERSE CITY, Mich. -- DaimlerChrysler AG expects to save about $100 million annually by sharing information with Hyundai Motor Co. and Mitsubishi Motors Corp. on the parts sourcing for a new family of global engines.
The automaker will use that savings to pay for variable-valve timing and electronic throttle controls on the family of 1.8-, 2.0- and 2.4-liter engines. Engine production begins in Dundee, Mich., next summer.
All three automakers are collaborating on the engine project, with nearly identical plants being built in Korea and Japan.
Bruce Coventry, president of the three automakers' Global Engine Manufacturing Alliance, said last week at the Management Briefing Seminars that project managers from the automakers used an open book pricing approach when sourcing parts for the family of four-cylinder engines.
The $100 million figure was arrived at after comparing what it cost DaimlerChrysler to produce four-cylinder engines in Saltillo, Mexico, for the Dodge Neon, Chrysler PT Cruiser and other cars, Coventry said. Each automaker, Coventry said, placed parts such as pistons and camshafts on a table and told the other partners what it had paid for each component.
"We shared sources, bundled volume, and then we went shopping together," he said. About 20 percent of the engine's content will be sourced from Asia.
Coventry said the automakers also were able to save money by: