First Korea, Now Brazil As Chrysler Expands Parts Supply Base
DETROIT (AP) _ Chrysler Corp. says it plans to open a new supply office in Brazil to increase its imports of auto parts from low-wage countries.
Stephan Sharf, a Chrysler executive vice president who has traveling nearly a year seeking business partners for the No. 3 U.S. automaker, said the Sao Paulo-based operation will be called Chrysler International Services SA.
Sharf said on Wednesday that Chrysler is ready to ″share its advanced technology and expertise″ with Brazilian companies in return for obtaining benefits of the country’s ″economic climate and government support,″ a reference to low labor rates and relatively low costs of operating there.
One of Sharf’s bigger projects is parts procurement from Samsung Group of South Korea. Chrysler has expressed interest in importing cars from South Korea, but Samsung hasn’t received permission to build cars, so talks have centered on parts. Sharf also has traveled to Eastern Europe as part of Chrysler’s worldwide strategy.
George Norcross, who has 15 years experience in Latin American automotive operations, will head the Brazilian office, Sharf said in a news release.