DETROIT -- In 2006, the Chrysler group will require Tier 1 suppliers to use more content from minority-controlled companies.
Chrysler wants 8 percent of content on each Tier 1 contract to be derived from minority-controlled suppliers, Jethro Joseph, Chrysler group senior manager of minority supplier development, told Automotive News.
In 2005 the requirement was 7.5 percent. In 2004 it was 7.0 percent.
Chrysler defines minority suppliers as companies in which black, Hispanic, Asian-American, Asian-Pacific or Native-American individuals own or control at least 51 percent of the enterprise.
"We would like to have our supply base reflective of our customer base," Joseph says. "And minority suppliers hire minority employees who buy our products and services."
In 2006, Chrysler's production and nonproduction sourcing from minority-controlled suppliers will total an estimated $3.5 billion to $3.6 billion, Joseph says. In 2004, the total was $3.4 billion, the company says.
By comparison, the Chrysler group's production and nonproduction sourcing will total an estimated $27 billion in 2005, he says. Chrysler's purchasing total includes sources other than Tier 1s.