General Motors actively reducing Delphi parts count
Filed under: Trends, Plants/Manufacturing, GM, Earnings/Financials
Bo Andersson, General Motors’ vice president of global purchasing admits that the automaker is actively
working to reduce its dependence upon bankrupt Tier-1 supplier Delphi. In fact, GM held a meeting with a number of
different companies to ask who would like to make up for the supplier’s shortfall. For example, GM stopped sourcing
spark plugs from Delphi a few weeks ago, transferring its orders to companies like Denso, Honeywell and NGK. The
company is also stockpiling parts in key operations in case of a Delphi shutdown.
The move stands to not only lessen the blow to GM if Delphi goes on strike, it also allows the supplier to close
down part of its operations and streamline itself in an effort to recover financially.
[Sources: Purchasing.com; PlasticNews.com]
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Written by Joel Arellano on May 4th, 2006 with
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