In order to bring its manufacturing operations more in line with consumer demand, General Motors has announced that it will greatly reduce the number of its truck-plant suppliers, a new report finds.
GM currently uses about 400 truck suppliers, but the automaker’s production schedule no longer requires that many suppliers. GM has yet to decide on how many suppliers it needs, but is working on a target figure.
However, GM purchasing chief Bo Andersson made it sound pretty clear that GM might be eying a 50 percent reduction in truck suppliers. “Where we have four suppliers, we will go to two; where we have two, we will go to one,” he told Automotive News. “If we used to build 7,500 trucks a day and we are now building 3,750, we need to adjust.”
The final decision will come down to geographic location, “best price, quality, delivery, technology and best landed cost.”
08/15, 3:09 PM
posted by:
MasterYoda2005
Damn gas prices…
08/15, 3:36 PM
posted by:
RaineMan
And the economy continues to spiral… there’s several thousand more people out of work. I’m sure Ford will be doing the same thing.
Those gas speculators had no idea what they were starting when they began playing their little money game.
08/15, 4:13 PM
posted by:
inline6
Sounds like a solid plan, actually. That’s the way for GM to trim costs, parts inventories, and be able to better use economies of scale to leverage better costs from the suppliers they remain with. It’ll help ensure greater parts compatibility, and probably increase production efficiency so the trucks get made faster, and with better build quality at the same time.
08/15, 5:35 PM
posted by:
RaineMan
I’ve figured out what’s wrong with GM… Billy-Bob redneck is up there running the show. I mean come on… their Purchasing Chief’s name is BO?
08/15, 5:40 PM
posted by:
400horseSS
^ Yep and Bo knows $$$, he’s rich like then other idiots in the RenCen.
08/17, 10:31 PM
posted by:
Get Real
Michigan is going to die as a state.
49 states will be left.