GM pushes its suppliers to tap China


Detroit News – 04/07/05

Well this is predictable. GM is in the news with profit problems and management shakeups. So what comes next? Let's beat up on the suppliers and pressure them into China. When GM wants “aggressive cost cutting” are they asking suppliers to make short-term cuts that might hurt their business in the long term? Or, are they asking them to become more lean and really get better? Now building parts in China for China is one thing — that makes sense from a Value Stream standpoint, but does cheap labor really offset the total supply chain cost for parts that are used in the U.S.?

From the article: “GM imports only one-tenth of 1 percent of the parts used in its U.S. assembly plants from China (Michigan factories supply 14 percent). But the company expects to increase its auto part purchases from China 20-fold in six years — from $200 million in 2003 to $4 billion in 2009.”

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.

What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn.

Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.

Get New Posts Sent To You

Select list(s):
Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Free Preview! Mark's New Book: "The Mistakes That Make Us"Get PDF Now
+ +