General Motors has announced that it will be relying more on smaller suppliers in the face of stricter CAFE standards. Although GM has strong ties with larger suppliers with fuel-efficient technologies, Bo Andersson, GM vice president of global purchasing, says that some small suppliers have an advantage “because those technologies have not existed before.”
Most of the small suppliers have stayed the same size because their fuel-efficient technology wasn’t needed in a 25 mpg world. Now that 35 mpg is the new standard, automakers suddenly need their technology.
Andersson says that focus on fuel-efficient technologies has increased over the past few months, largely due to the 40% increase in fuel economy mandated by the Federal government. “This is our opportunity to jump on it quick and move as fast as we can,” Andersson told Automotive News. “We know what the targets are, and we will get there. We don’t know how, but we will get there.”
It remains unclear if the small suppliers will be able to keep up with GM’s large volume demands.
