Chrysler Sues Consultant for Failure to Identify Low Cost Producers
Chrysler has commenced legal proceedings against consultant Accenture in the United States. Chrysler engaged Accenture in 2006 to advise it in relation to sourcing components from low cost countries. Chrysler, which spends US$40 billion per year on components, expected to receive a savings of approximately US$900 million. Instead it saw almost no savings. Chrysler has alleged that Accenture engaged in fraudulent representations in relation to its experience and in-country presence in low cost countries.
