GM plan to ask suppliers to use low-cost sources

21 September 2005
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22 September 2005

General Motors is to ask its suppliers to source more of their supply from low-cost countries.

The car giant said it wants suppliers to consider whether they can meet growing demand from emerging markets in Asia and source from abroad to enable them to be more competitive.

Bo Andersson, vice-president of global purchasing, told analysts in August: "We have seen upward pressures on raw material coupled with lower volumes in our North American business. We are looking hard at restructuring our supply base."

Tom Wickham, spokesman for the company, told SM: "We currently buy $85 billion in direct materials from suppliers that go into the vehicle itself. $61 billion is purchased in North America.

"As our production needs to increase in other parts of the world, we're looking to increase our supply base to meet demand."

Andersson is expected to meet suppliers in Michigan this week.

SMsep2005

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