Report: GM purchasing chief says that supplier crisis is not over yet

Article by Christian A., on August 27, 2010

After serving a few months as the new purchasing chief for General Motors Co., Bob Socia in an interview expressed his worries about more financial trouble coming as production ramps up.

Socia, currently the vice president of GM's global purchasing and supply chain, said that he expects "more troubled suppliers as the volumes come back."

GM purchasing chief explained that there's nothing to indicate that the economic troubles are now behind it. The car industry continues to face liquidity issues and most suppliers are still weakened financially, meaning that they have difficulty securing operating funds from banks and shoring up their capital.

Socia had taken over in June when his predecessor, Bo Andersson, left to assume the chairman's job with Russian automaker GAZ.

Socia said GM faces a serious challenge from its weakened supply base. Supplier problems had worsened when GM and Chrysler Group geared up production after two months of inactive assembly plants.

As a result, suppliers struggled to obtain cash to bridge the gap between the startup of parts production and the arrival of revenues. Typically, this gap spans 45 to 60 days. GM reportedly has 140 to 150 troubled suppliers that it is closely monitoring. [via autonews]

Topics: gm

If you liked the article, share on:

Comments

Recommended

A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries