TRAVERSE CITY, Michigan, USA -- DaimlerChrysler expects to save about $100 million (E81.7 million) annually by sharing information with Hyundai and Mitsubishi on the parts sourcing for a new family of global engines.
D/C 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 at D/C's world engine plant in Dundee, Michigan, USA, next summer.
Nearly identical plants are being built by Hyundai in Korea and Mitsubishi in Japan.
Bruce Coventry, president of the three automakers' Global Engine Manufacturing Alliance, said 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 D/C 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: