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G.M. considers sourcing key components from Chinese market
Shanghai. December 7 (Gasgoo.com) – To reduce production costs, General Motors Corporation is considering to source key components from Chinese market, Chinese newspaper Beijing News reported today.
This is the first time that General Motors plans to source key component from Chinese suppliers and several of them have become GM’s short-listed candidate suppliers, the report said.
Bo Andersson, group vice president in charge of GM’s global purchasing and supply chain, said at he recent China International Auto Parts Expo earlier this week that GM will increase its procurement spending in China by 25 percent in the period between 2005 and 2010.
Bo Andersson said G.M. buys 20 million parts a month from 190 Chinese suppliers, but had experienced no quality problems over the past year.
Andersson said 90 percent of the materials and parts in a locally manufactured G.M. car are sourced in China -- 60 percent of them from multinational firms and 40 percent from Chinese rivals.
General Motors has signed up with 198 Chinese automotive parts suppliers this year, Chinese media quoted a GM official as saying.
Among the 198 Chinese suppliers, 41 suppliers are based in Beijing and its surrounding areas, 133 suppliers are based in Shanghai area and 44 are in Guangzhou area.
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