Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / A LEADING CUSTOMER IN THE CUSTOMER'S INDUSTRY

CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM

No. SIC Year Notes
1 3714 2004 DaimlerChrysler announced plans for a $1.2 billion factory expansion in Ohio under an unusual agreement that would allow it to share the cost of rolling out new models for the U.S. with its contractors. The agreement allows contractors to own vital parts of the manufacturing process. Suppliers will pay $300 million to construct three buildings, including the paint shop and the body shop that will help in the assembly of two new vehicles. DaimlerChrysler hopes such agreements could reduce the investment required to develop new models and help it produce a broader array of vehicles down the road.

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