Monday February 7, 12:25 pm ET
* $3.3 billion spent with minority suppliers in 2004 represents 12 percent of total purchases * Chrysler Group increases purchases from minority suppliers by more than $300 million


AUBURN HILLS, Mich., Feb. 7 /PRNewswire-FirstCall/ -- Chrysler Group announced today that it spent $3.3 billion with minority suppliers in 2004, which represents 12 percent of its total purchasing and an increase of more than $300 million from the previous year.

The growth in Chrysler Group minority purchasing represents the highest year-over-year increase for minority suppliers and distinguishes Chrysler Group as one of the industry leaders.

Since 1998, the company has nearly doubled dollars spent with minority suppliers, from $1.7 billion in 1998 to $3.3 billion in 2004. The continuous growth demonstrates Chrysler Group's long-term commitment to the economic development and growth of its minority suppliers.

Since the program's inception in 1983, the Chrysler Group has sourced more than $27 billion worth of business with minority-owned companies.

Chrysler Group has developed a number of programs to build its minority supplier base. Those programs include Chrysler Group's annual "Matchmaker" event, a Minority Enterprise Initiative mentoring program and a Tier 2 development program.

"We have created a solid minority supply base whose success in business depends on being competitive in the areas of quality, cost, technology and delivery," said Thomas Sidlik, DaimlerChrysler AG Board of Management Member for Global Procurement & Supply. "We challenge our minority suppliers to grow their business by becoming global players in the automotive industry."

As recent as last week, Chrysler Group announced that TDS/US, a certified minority-owned Tier 1 enterprise, was awarded its largest minority logistics contract ever. The contract, valued at $205 million over six years, is also the largest purchase of supply chain services the Chrysler Group has ever made. Under the agreement, TDS/US will operate an inbound parts sequencing center for DaimlerChrysler's Belvidere (Ill.) Assembly Plant.

In 2004, the Company also coordinated and sponsored an Automotive Business Opportunity Mission to South Africa in conjunction with the National Minority Development Council and the Corporate Council on Africa. Representatives from 15 minority-owned suppliers traveled on the business opportunity mission to South Africa to meet with black-owned enterprises. The trip was designed to help Chrysler Group's minority-owned businesses become more globally competitive and to develop economic opportunities for South African black- owned companies.

In addition, Chrysler Group was recognized by more than a dozen national and regional organizations for its Diversity Supplier Development programs in 2004. Those awards include the National Minority Supplier Development Council "President's Recognition Award" to Thomas Sidlik and the "Corporate Advocate of the Year" award from the Michigan Minority Business Development Council and the Michigan Hispanic Chamber of Commerce.