DaimlerChrysler Quality Downfall!

[Thai]

DaimlerChrysler's Cheapness Revealed!

Some suppliers say DaimlerChrysler isn't playing fair as it pushes for lower parts prices Mercedes-Benz risks losing technology leadership, according to survey respondents

Monday, March 1 2004

DESPITE MERCEDES-BENZ'S highly-publicized quality problems, a new SupplierBusiness.com satisfaction survey suggests that quality demands are well down the list of priorities at DaimlerChrysler.

The company is far more interested in squeezing lower prices from
suppliers than improving quality, according to the survey results.
Suppliers say DaimlerChrysler is using business management tools such as its Materials Cost Management (MCM) system solely to drive costs down. That harms relationships and undercuts suppliers' ability to sustain their business, they say.

MCM, (formerly SCORE, Supplier Cost Reduction Effort) was set up as "an avenue for suppliers to make suggestions to reduce price without it hurting supplier margins," said one North American supplier. But in practice, the supplier said, DaimlerChrysler rarely approves engineering changes. "Then it says that since [a supplier] didn't meet MCM goals through Engineering Change proposals," it must part with "hard money to make up
the difference."

Mercedes-Benz has been the technology leader through the 1990s. Mercedes cars were the first fitted with ESP (from Bosch); first to get common rail diesel (Bosch); first to get adaptive cruise control (Continental AG); and second only to BMW with navigation systems.

But when "customer focus is price driven and there is no consideration for past contributions," there is a risk that suppliers will take their business to customers who will reward innovation and R&D investment, said suppliers in the survey.

Respondents also say that DaimlerChrysler deals too aggressively with individual suppliers. Purchasing departments will "intentionally play one supplier against another," to get costs down, according to one respondent. "It is a one way street" with DaimlerChrysler, said the suppler executive.

Another manager from a major German supplier said "partnership regarding cost saving ideas is just a phrase." DaimlerChrysler's other main cost management tool is Linear Performance
Pricing (LPP). DaimlerChrysler uses it to plot the prices of every
"like" part on a graph. The average of the lowest 20% of prices creates a best practice price line.

"Then they call you into a room with 30 DaimlerChrysler people ... and ask why all your pricing is above the line," said one North American supplier. "The fact that you won a competitive bid ... is not a relevant fact."

Several respondents said that LPP methodology is suspect, and worse, that suppliers called in for LPP review "are not allowed to even analyse the data ... since it is deemed confidential. [DaimlerChrysler] does not give you enough information to defend yourself in detail."

Many suppliers say they don't trust DaimlerChrysler to reward good ideas. One North American powertrain supplier said that DaimlerChrysler took its "MCM idea and provided it to the current supplier to quote the same idea and keep the business."

Survey respondents said that only undermines successful collaboration; it slows technological progress because "partners" are hesitant to keep good ideas flowing to their customers.
Several suppliers responding to the survey said that demands for price cuts "without any regard to quality, design, reliability [or]
performance," will only hurt DaimlerChrysler in the longer run.

 

[4Runner4UGA]

Quality issues is one reason I stayed away from buying a Dodge Ram instead of a Toyota. I could have gotten a great deal on the Ram, but when I went home to think about the choice between a 4runner or a Ram I decided since I had a Toyota before with absolutely no problems, and Chrysler is well know for major transmission issues at around 60k, I had to go with the known commodity with a quality reputation. I also consulted a cousin of mine that is a service guy at a local dodge dealer about it, and he told me "you do not see me driving a chrysler do you? We have more transmission work then any other mark in the world."

Hopefully one day profit squeezing will not be the only motive to certain car makers, not just DCX here, also many others are included in this. I find it interesting that since the merger between Benz and Chrysler both have gone down in terms of quality, I along with many others thought that it would help with the quality esp at Chrysler.

 

[NoDak]

and just to throw more fuel on the fire, this fiasco with the upper ball joints on some american vehicles is following the same line as the explorer tire issue.

 

[nh00gts]

As an employee of a Daimler Chrysler dealer I would like throw forth some comments. On the tranny issue in the Rams powered by either the 318 or 360 engine: Yes the tranny is weak and that is why it has been discontinued and replaced with a 5 speed automatic. That goes with the new engines (4.7L and Hemi)
Also on the balljoint issues in both the Dakota,Durango,and old style Rams; balljoints are a wear item and do fail.So please push aside the rumors for the fact that they are unproven rumors and due to the fact that of all the Dodge products I have seen or heard about in New England I have never seen proof of the ball joint/vehicle flip scenario.
I have seen numerous vehicles come in without a problem anywhere and then I have seen vehicles come in with many many problems. Sometimes things just fail and other times the vehicles are beaten and therefore labeled as pieces of crap by their owners for failing.
And I don't drive a Dodge either.I just think that they had their mistakes and in my opinion the quality has gotten better.

 

[snowjay]

Just another side to the story.

I own a 94 Dodge Ram, 360, 4spd Auto and I have 210k miles on the motor and tranny. I by no means beat on my truck but I dont drive like a granny either. It has seen its fair share off dirt trails, light towing, moving furniture and lots and lots of snow and snow banks. I just religiously changed my fluid every year regardless of mileage. Some years I changed it twice depending on what the year was like. I also have a 3" suspension lift and have had 33"+ tires on it since about 40k. I have heard all the tranny problems with the trucks on another message board I'm on and many of them were due to abuse plain and simple, and many of the other problems were lack of maintenance.

The only problems I have had with my Ram over the years was two fuel pumps, a water pump and radiator. All problems that can happen to any car. First fuel pump as at 60k, next one was at 180k water pump and rad was around 160, the truck owes me nothing. I feel it is a well built vehicle and really wouldnt hesitate to buy another one. Why didn't I? Well I have that one and I needed something more practical for daily driving and carting around my dog.

With that all said, I do like my Toyota as well and as much as I like my Dodge the 4Runner is put together more solid. I know is 10 years different in technology between them but the fit and finish is just better on the Toyota.

I dont think there is an auto made that doesn't have some problems or is percieved to have a 'problem'. Dodge has a bad wrap and this cost cutting thing isnt helping any. I personally think all the American manufacturers need to step up their game a bit. I'm not saying the imports are perfect but I think they have definate strengths over some of the american autos.