Kevin L. Bell, Senior Manager
Diversity Supplier Development

Chrysler Group LLC’s Leadership Commitment to Supplier Diversity

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat, S.p.A., produces Chrysler, Jeep®, Dodge, Ram, Mopar®, and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat’s complementary technology – from a company whose heritage dates back to 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat contributes world-class technology, platforms and power trains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

Question: What is your vision for the department?

Bell: The vision for Chrysler’s Diversity Supplier Development group is to be the premier supplier diversity program globally and to champion a diversified extended enterprise that reflects our employees, customer base, and the communities we serve. Chrysler has historically developed many of the best practices that other organizations have incorporated in their supplier diversity programs. Chrysler’s intention is to maintain Chrysler’s position as a leader in the supplier diversity arena.

Question: Assess Chrysler’s current supplier diversity program and future Direction.

Bell: There are certain things that are core to our program and that we must maintain. As an example, it is critical that we maintain our annual Matchmaker event and membership in core minority councils and advocacy groups. We want to strive to keep a presence in the community which is an imperative to a well-rounded diversity program. With regard to our future direction, we are now reaching out to engage other OEMs in the discussion so that we can have a collective voice, common practices, and demonstrate the critical importance of these programs to our industry. We are trying to innovatively create a better ways to motivate our Tier 1 suppliers to participate in the program – one future example might be evaluating suppliers based on their community impact and their efforts to make investments in empowerment zones.

Question: What about the current supply base is encouraging?

Bell: Clearly, transitioning from a North American market of 17 million units down to 10 – 12 million units has had adverse implications on all suppliers. It is encouraging that the vast majority of Chrysler’s diverse suppliers were able to withstand the economic downturn. The supply base demonstrated remarkable resiliency, and the overall financial health within the supply base, including MBEs, is stronger than it has ever been. Additionally, the extent that supplier diversity has regained traction over the last year, under the direction and leadership of Dan Knott, Chrysler’s Senior Vice President of Procurement, is very encouraging. Dan and others in the industry are really driving the supply base to embrace supplier diversity.

Question: What common mistakes do you see minority suppliers make that are detrimental to their current and future business opportunities?

Bell: The most common mistake is that they move outside their level of expertise too quickly. Although I strongly believe that all entrepreneurs must possess the ability to adapt to their customers’ needs, taking on new business that is out of scope or taking on business at any cost can put any supplier in a detrimental position. Another common mistake is putting more emphasis on winning business as opposed flawlessly executing existing business programs. Often, collaborating with another company is the best way for a MBE to win business, whether that is with another MBE or a majority company. We would like to see more collaboration amongst suppliers – leveraging geographic presence, skill sets, etc.

Question: How can minority suppliers learn about the products Chrysler procures and/or future sourcing opportunities at Chrysler?

Bell: The best way for minority suppliers to learn about opportunities with Chrysler is to participate in our annual Matchmaker event. The event normally features over 250 exhibitors comprised of minority, women-owned businesses, and veteran-owned businesses. Last year alone, over 1700 visitors attended. The event is ideal for suppliers seeking to do business with Chrysler since it provides access to our Tier I suppliers and Chrysler’s procurement community. Another way to learn about Chrysler’s procurement needs is to register and maintain a supplier profile within Chrysler’s diversity website. The website can be accessed via the web address: http://supplierdiversity.chrysler.com.

Question: What new initiatives will Chrysler employ to ensure minority suppliers are involved in your procurement process?

Bell: In terms of specific initiatives, we will continue to provide access via our annual Matchmaker event. Similarly, we will continue to maintain a strong presence in our core national and local minority councils and advocacy groups. Internally, the diversity team continues to meet with the Commodity Directors on a monthly basis to identify upcoming sourcing opportunities. Lastly, we will continue to challenge our large Tier I suppliers that are under-performing by requiring them to have measurable and credible development plans in place before being awarded any new business.

Question: Is there anything else that you would like to say regarding supplier diversity?

Bell: We, at Chrysler, do not view diversity as a program that stops and starts depending on the state of the company or the economic climate. Rather, we view diversity as a necessity for our company to be successful and sustainable. This year, Chrysler celebrates its 28h year of championing diversity and inclusion. The unwavering commitment to supplier diversity that Chrysler has demonstrated in the past will endure.