Daimler Steps up Supply Base Localization in China

It's good to see a Big 3 automaker investing in sustainable Spend Management strategies. No Spend Management expert that I know would argue with the notion of supply base localization. It's the strategy that Toyota is deploying with great effect right now in North America, demolishing the Big 3 on their home playing field (if only they could get their hybrid engine suppliers to ship enough quality parts, one wonders even how much further ahead of the competition they would be). But now, at least one of the Big 3 appears interested in following the same strategy in local markets on the other side of planet. According to the The People's Daily Daimler Chrylser "wants to increase its annual expenditure on China-made auto parts from 100 million U.S. dollars to 840 million dollars in 2008. The parts procured in China will be used in localized production by Daimler Chrysler's joint ventures in China." Tonight, I'll raise a mug of Tsingtao to toast Diamler's supply base localization efforts.

Jason Busch

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