DETROIT -- The Chrysler group sourced $3.8 billion, or 13 percent, of its U.S. purchasing with minority suppliers in 2005.
The target in 2006 is to hit 13 percent again, says Jethro Joseph, the company's senior manager of diversity supplier development.
The 13 percent figure includes money spent by Chrysler's suppliers. The company imposes targets on its supply base. For example, Tier 1 suppliers are expected to source at least 8 percent through minority suppliers in 2006.
Last year, plant supplies accounted for the largest gain in minority-supplier purchases, Joseph told Automotive News. That growth will continue in 2006, he says.
"It is the area of materials and supplies purchased for plant facilities," Joseph says. "Things like safety equipment, chemicals, oil, grease and electrical supplies."
The Chrysler group's U.S. production and nonproduction purchases totaled $29 billion in 2005, he says. He says about 300 minority-controlled companies supplied the Chrysler group.
Joseph says minority companies still need to move into supply of raw materials.
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