Chrysler Group Honored with Michigan Minority Business Development Council’s Corporation of the Year Award for the Second Consecutive Year

For the sixth time in the last seven years, Chrysler Group has been honored as the “Corporation of the Year” by the Michigan Minority Business Development Council (MMBDC). The award, which is the Council’s most prestigious, evaluates all manufacturers on their diversity supplier development programs, and the initiatives the companies implement to help minority suppliers succeed. MMBDC also named Chrysler Group employee Robin A. Hammer Corporate Advocate of the Year.

The awards were presented Oct. 4 in Detroit during the 23rd Annual MMBDC Awards Dinner, where Chrysler Group President and CEO Tom LaSorda served as the keynote speaker.

“In today’s competitive market, a key to future success will certainly be the ability to attract and retain the best talent capable of working in a diverse and global environment,” said LaSorda. “That’s why It is increasingly important that DaimlerChrysler suppliers have the capability to meet our global needs.”

Since 1983, the Company has sourced more than $31 billion to minority-owned companies and has received the National Minority Supplier Development Council’s Corporation of the Year award six times: in 2000, 2001, 2002, 2003, 2005 and 2006. Additionally, Robin A. Hammer, Chrysler Group Program Manager – Diversity Supplier Development, was recognized for her leadership role as an advocate for diverse suppliers.

In January 2006, Peter Rosenfeld, Executive Vice President – Procurement & Supply, DaimlerChrysler Corporation, was named chairman of the MMBDC. In addition to his duties at DaimlerChrysler, he will preside over the nonprofit organization for the next two years.

As MMBDC's chairman, Rosenfeld will primarily be responsible for hosting and presiding over all Executive, Financial and Board of Director meetings. He will approve all programs and budgets and ensure that they are in compliance with the National Minority Supplier Development Council's Standards of Affiliation.

"The Corporation of the Year award represents a win for the Chrysler Group and our minority suppliers, who help us remain competitive,” said Rosenfeld. ”Chrysler Group’s commitment to minority supplier development will remain consistent in the good times and the challenging ones.”

Since 1998, the Company has more than doubled dollars spent with minority suppliers – from $1.7 billion in 1998 to $3.8 billion in 2005 – making Chrysler Group among the industry leaders with 13 percent of its business going to diverse suppliers. The $400 million growth from 2004 to 2005 in Chrysler Group's minority purchasing, represents the highest year-over-year increase for minority suppliers and demonstrates Chrysler Group's long-term commitment to the economic development and growth of its minority suppliers.

The MMBDC, established in 1978, is the largest of 39 regional organizations affiliated with the National Minority Supplier Development Council. The MMBDC has 669 corporate members, 1,850 certified Minority Business Enterprises and an annual operating budget of $3.5 million. Corporate members reported minority business spending of $15 billion in 2004. MMBDC services include the certification of eligible minority businesses and professional development sessions as well as networking opportunities.

Over the span of two decades, the Chrysler Group's Minority Supplier Development division has nearly doubled dollars spent by promoting new business opportunities for minority businesses and Tier One suppliers. Chrysler Group’s continued efforts to build these relationships have introduced several initiatives for the Minority Business Enterprises (MBE). These initiatives steer minority suppliers toward success, with programs that include “Matchmaker” and the Minority Enterprise Initiative (MEI) program.

Chrysler Group Diversity Supplier Development
“Chrysler Group has actively supported minority businesses for 22 years, and we will continue to create innovative programs that help suppliers grow and remain in business,” said Jethro Joseph, Senior Manager – Supplier Diversity, Chrysler Group. “Since the inception of our minority supplier development program, we have sourced more than $21 billion to minority businesses, and our ‘Matchmaker’ program continues to generate new business opportunities. That direct support will continue.”

In the last seven years, the company has more than doubled dollars spent with minority suppliers, from $1.7 billion in 1998 to $3.8 billion in 2005. This significant increase demonstrates Chrysler Group’s long-term commitment to the economic development and growth of its minority suppliers, in addition to distinguishing Chrysler Group as an industry leader in minority supplier development.

Matchmaker
In 2000, Chrysler Group developed the “Matchmaker” program, which was designed to pair minority and Tier One suppliers, and encourage networking and the development of long-term partnerships. The first year garnered about $15 million in business opportunities. Since then, the program has generated more than $1 billion in new business opportunities.

This year, minority and woman-owned exhibitors were invited to submit business ideas to compete for a year-long mentorship with a Tier One supplier. Each finalist presented their plan to the Tier One panel of judges at the Matchmaker event. Production Springs of Roseville, Mich., was chosen as the winner and will be matched with Tier One supplier Robert Bosch Corporation, for a one-year mentorship.

Minority Enterprise Initiative (MEI)
The much-heralded Minority Enterprise Initiative is one of the first programs to link auto manufacturers with minority suppliers and a financial institution (Comerica Bank), and one of the only automotive initiatives to address all aspects of a supplier’s business. MEI was developed to help minority suppliers improve technical capabilities and increase quality and performance.

Results of the program show that participating suppliers have increased their business with Chrysler Group by an average of 30 percent – which is more than $240 million in new business for minority companies. In addition, the MEI program has generated more than $95 million in new capital loans for suppliers through Comerica Bank.

Additional Programs Benefiting Minority Businesses
In November 2004, Chrysler Group hosted 15 minority-owned U.S.-based suppliers on a business opportunity mission to South Africa to build economic bridges between the U.S. suppliers and their black-owned South African counterparts. The trip helped Chrysler Group’s minority-owned suppliers become more globally competitive by opening doors of opportunity for South African black-owned businesses, while South Africa’s developing automotive industry benefited from the exposure to U.S.-based suppliers.

Supplier Diversity Web Site
Introduced in 2005, the company's Supplier Diversity Web site is designed to identify and register potential suppliers. For minority-owned suppliers, it serves as a resource to build relationships and understand specific procurement requirements. For the Chrysler Group, it captures suppliers’ capabilities and experience, and helps identify potential suppliers for specific procurement needs.