GM: Developing Alternatives to Delphi

Given this short piece in Purchasing, it would appear that GM is making strides in reducing its exposure in the event of a Delphi shutdown. According to the article, "Delphi filed Chapter 11 in October and two weeks ago said it planned to close most of its U.S. plants and move away from certain product lines. According to press reports, GM's Bo Andersson, vice president of global purchasing, told a group of suppliers at a meeting that he has engaged GM's best-performing suppliers to ask if they are interested in picking up more Delphi work." While hardly an indication that GM is moving to embrace a Toyota 60/20/20 spend allocation model, it is a signal that the manufacturer understands the tremendous exposure it has given Delphi's precarious situation. You can read other recent posts on GM and the Big 3 here and here. And I've still not heard if GM's execs or their union-boss counterparts are heeding my other suggestion for cost cutting.

Jason Busch

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