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FCA has announced that it will no longer hold its purchasing staff to individual cost-saving goals when dealing with suppliers.

The original goals had handcuffed staffers when suppliers have sought pricing relief. FCA is notoriously hard on its suppliers, which may or may not be factored into recent quality SNAFU's from Auburn Hills.

FCA said the buyers will not work in teams who will work cooperatively to meet company goals. It's expected that buyers will begin selecting higher quality components as it seems compensation won't be tied exclusively to savings.

Tom Finelli, FCA's VP for Purchasing and Supplier Quality said “This sort of hit us across the face a few weeks ago, we realized that our relations with suppliers were positive at the leadership level, but were struggling at the buyer level.”

This marks a fundamental shift in FCA's purchasing methodology. Previously cost was the main hurdle for suppliers to keep themselves in consideration, now they will focus on component quality as a consumer would.

FCA is in dire need of shoring up their supplier relations, Planning Perspectives Inc. have noted that FCA is slow to make payments and unwilling to help suppliers cut costs. The changes will take effect in early 2016.
 

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Quality is key and it's what will get them more buyers but just not sure how much, if they run campaigns stressing that it could change some minds.
 

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It's great that their product quality will improve but would that cost be transferred to the buyer and how much of a price hike will we see?
 

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Quality is key and it's what will get them more buyers but just not sure how much, if they run campaigns stressing that it could change some minds.
No you don't. Thats whats got them into so much trouble lately. They've had grandoise campaigns announcing that quality is back in town at detroit and simply didnt follow up.

What they need to do is put their head down and do the work, people notice hard work... people also notice when you're talking out your ass ... Yea im talking to you Mr. Olivier "the brand is more important then product" Francois (Chief marketeer at FCA)
 

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I think they were trying to simply tell people things and assume that would stick with them. That works in part, but not if reality tells them the opposite. You've got to put the work in before you go on some pr offensive.
 

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Doesn't seem like they have followed through with this plan.
FCA had to recall a whole slew of Dodge Darts including the 2015 model and some trucks.
I hope the spider comes with warranty.
 
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