Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

GM Was Once a Good Auto Manufacturer-UNIONS SCREWED
(Buying $80 BILLION ? in parts from China- Delphi Who???)

GM to source 80 bln usd worth of auto parts from China - report -11.08.2005, 01:44 AM

BEIJING (AFX) - General Motors Corp plans to source 80 bln usd worth of auto components in China for a new model of pick-up truck to be launched soon in the North American market, the China Business News reported.

The newspaper cited unidentified sources as saying that the automaker's North America unit will send a team of about 200 staff to China to supervise the production of its Chinese suppliers.

The report did not provide a timeframe for the 80 bln usd order.

Currently General Motors' suppliers in China mainly provide products to GM's local assembly lines, according to the report.

A former employee of Delphi Corp, the auto parts manufacturer which filed for bankruptcy protection last month, told the newspaper that General Motors previously purchased 30-50 pct of its auto parts from Delphi.

A recent study by the McKinsey Quarterly estimated that carmakers could cut their annual bill for auto parts by 25 pct by sourcing more components in China and India.