GM to stop auto parts sourcing from China

General Motors is gaining revenue through exporting auto parts to China. Last week in Detroit's auto industry meeting, General Motors head of global procurement Anderson said, "The weakening dollar has revived the competitiveness of the U.S. auto parts industry. Therefore, the Group has decided not to increase the spare parts sourcing from China. Meanwhile, General Motors's auto parts export has continued to grow in China with Shanghai GM being the largest customer." He also mentioned that GM may reduce parts procurement from overseas market.

The cost competitiveness of America's auto part industry has enabled automakers and auto parts makers to export their products overseas including to the European market. Therefore, auto parts export is expected to become a new source of revenue for GM.

Just a month ago, General Motors China has signed another export order worth 700 million US dollars with its joint venture partner Shanghai Motors to import Cadillac and automobile parts from the U.S. and to promote the Cadillac and other GM brands in China.

In the last decade, General Motors' joint venture companies in China have imported 35 million dollars worth of vehicles, spare parts, equipment and machinery from North America.