Supplier Mission

DaimlerChrysler AG is turning to its U.S.-based Chrysler Group to help grow the company's supply base in South Africa.

A plan by the South African government calls for auto makers to include 30% local content in vehicles produced in the country to qualify for government fleet sales. DC views U.S. minority suppliers as a crucial link in meeting this goal.

DC has a key interest in South Africa. The auto maker's assembly plant in East London, South Africa, produces 40,000 right-hand-drive Mercedes-Benz C-Class cars annually and employs 4,000 workers.

DC Africa posted revenues of €2.7 billion ($3.4 billion) in vehicle sales for 2003, with an 11.1% share of the South African market. Government fleet sales play a big role in the German OEM's overall sales in the region.

In an effort to grow government fleet sales, DC says it will send 15 U.S. minority-owned suppliers and several of the auto maker's executives on a mission to South Africa to identify business opportunities and potential joint ventures. The trip is taking place Nov. 4-13.

“Our minority suppliers need to get more global…and we see a great opportunity for them in South Africa,” says Tom Sidlik, DC board of management member responsible for global procurement and supply.

Sidlik says it is vital for DC and other auto makers to help black-owned South African suppliers grow their business and knowledge base.