GM Minority Supplier Spending Reaches $7.2 Billion In 2003

DETROIT March 22, 2004; General Motors continued its aggressive efforts to grow a competitive minority supplier base, spending a record $7.2 billion with minority suppliers in 2003.

GM minority spending for direct and indirect materials increased 16 percent over spending in 2002. Last year, Tier 1 spending accounted for $4.2 billion and Tier 2 spending totaled $3 billion in the United States.

"Supplier diversity is critical to GM's success in the marketplace," said Bo Andersson, vice president GM Worldwide Purchasing, Production Control and Logistics.

"To that point, we have aggressively invested in and mentored minority suppliers," Andersson added. "In return, our minority suppliers are demonstrating they can compete with the best automotive suppliers in the world."

GM, the first automotive company to establish a supplier diversity program, has spent approximately $44.3 billion with minority-owned businesses since 1968. For more than 18 consecutive years, GM Tier 1 minority spending has been $1 billion or more, and from 1999 through 2001 it exceeded $2 billion annually. In 2002, GM's Tier 1 minority spending was $3.8 billion.

"GM has demonstrated a sincere commitment to increase spending with existing suppliers and provide opportunities for new minority suppliers," said Dave Bing, chairman of the Bing Group, which supplies steel stampings, seat systems and mirrors for a variety of GM vehicles.

GM's success in increasing spending, in part, is linked to the company's Supplier Diversity Council and mentoring program for minority suppliers.

"Minority suppliers that do business with GM know the Supplier Diversity Council is a great forum to address mutual concerns and issues," said Bing, who co-chairs the council. "And GM's mentoring program puts minority suppliers in a better position for success."

GM currently mentors 50 minority suppliers, providing leadership direction and resources to grow the suppliers' strategic capabilities. In addition, minority suppliers are able to receive financing from Motor Enterprises Inc, a GM subsidiary that was formed in 1970.

The success of GM's minority suppliers is evident each year when GM issues its Supplier of the Year awards. Last year, nine of the 70 Supplier of the Year recipients were minority suppliers.

"These are companies committed to being world class," Andersson said. "As such, GM remains committed to retaining and growing its absolute best suppliers."

To reinforce that point, GM is requiring its Tier 1 suppliers to source a minimum of 8 percent of its Tier 2 GM business to certified minority companies.