GM to demand outsourcing from suppliers

Filed in archive Outsourcing News on September 14, 2005

General Motors Corp. (GM) will start a three-year cost-cutting plan on September 20. As part of a program to reduce its $85 billion worldwide purchasing bill by 20 percent, GM will urge its U.S. suppliers to ship work offshore.

Bo Andersson, GM's purchasing chief, anticipates the plan to provoke many of their top suppliers. He said, "I see much more emotion in our supply base and non-professional businessmanship in the last two years than I've seen in my whole career."

This year, the automaker has lost $2.5 billion in North America. The company is also pressing the United Auto Workers to consider higher out-of-pocket healthcare costs.

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