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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

It looks like Porsche will be very busy throughout 2017 as it prepares for the eventual launch of its two new models this year – the 2017 Porsche 911 GT3...
by - January 23, 2017
Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 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