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

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 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