Las Vegas Herald
LasVegasHerald.com Saturday 4th February 2012 Issue 2012/035
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    GM to demand outsourcing from suppliers
    Las Vegas Herald
    Friday 9th September, 2005  


    General Motors Corp. is beginning a three-year cost-cutting plan that includes urging U.S. suppliers to ship their work offshore.

    The plan, expected to be unveiled Sept. 20, follows the completion of a separate three-year program aimed at reducing by 20 percent its $85 billion global purchasing bill as rancor among suppliers over the automaker's cost-cutting demands is reaching a fever pitch.

    Bo Andersson, GM's purchasing chief, expects the plan to provoke many of GM's 250 top suppliers.

    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, he said.

    Still, GM is under pressure: It has lost $2.5 billion in North America this year and is pressing the United Auto Workers to consider higher out-of-pocket healthcare costs.


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