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Chrysler's Winning Formula: HOT CARS + FLEXIBILITY

HOT NEW MODELS ARE BEHIND CHRYSLER Group's renaissance, a profit rebirth that Tom W. LaSorda, president and CEO, wants to support and grow via a program of flexible manufacturing.

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The concept: empower Chrysler Group's North American plants to more quickly respond to changing market demands while increasing facility utilization. His strategy: heavy investments in the latest robotic technology to power a new level of flexible automation with a greater emphasis on employee workplace culture and supplier relationships. The results easily translate into a competitive edge via a faster response to customer product needs and preferences. Since late 2003, Chrysler has invested billions of dollars in a flexible manufacturing initiative that will also increase quality, plant utilization and profitability while enabling a growing number of lower-volume nameplates. Consider the Chrysler initiative as a role model example for U.S. manufacturing, says Jay Baron, president, Center for Automotive Research. He says his current research on flexible manufacturing indicates the strategy can be an effective competitive tool across all manufacturing sectors.

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