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GM puts squeeze on suppliers in plastics resale program.

Publication: Automotive News
Publication Date: 02-JUL-01
Format: Online
Delivery: Immediate Online Access
Full Article Title: GM puts squeeze on suppliers in plastics resale program.(Brief Article)

Article Excerpt
CLEVELAND - General Motors wants its molders to purchase plastics through GM, allowing it to leverage the massive buys into volume cost cuts.

The resale program is not mandatory, but participation will play into sourcing decisions, said Mary Blair, global commodity manager for corporate raw material for GM.

The program has existed for several years, and ``numerous'' suppliers have taken part in it, Blair said. The difference is the company will use it as part of the overall criteria as to which supplier receives a contract for a specific component or module.

``If I had two suppliers out there that went into the final round, one participated (in the resale program) and one did not, I could ensure that the one that was participating would not be at risk from fluctuating prices,'' she said.

The idea, Blair said, is that...

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