A Chrysler Group strategy to consolidate parts will save the auto maker $300 million when it launches production next year of the '07 Dodge Caliber C-car.
The Caliber program is the first all-new product to benefit from an initiative to reduce the number of individual parts that comprise a vehicle component. This approach creates the added advantage of simplifying assembly, which translates into an effective safeguard against variation, quality's enemy.
The Caliber makes its debut early next year. The savings are accrued over the life of the program, and they are calculated by comparing the cost of assembling the new car to that of the car it replaces, the Dodge Neon.
Chrysler successfully has used its parts consolidation strategy on existing products, Larry Lyons, vice president-small car operations, says. Badging on the current Jeep Grand Cherokee forms part of a side molding, whereas previous model years featured separate badges that were mounted above the molding.
And in addition to reducing the number of parts Chrysler must purchase, integrating parts such as Grand Cherokee's badge and molding reduces the number of operations an assembler must perform.
Chrysler's push to shrink its parts bin parallels an initiative by its parent company, DaimlerChrysler AG, to explore increased commonization.
