GM Signs Up With 198 Chinese Suppliers This Year

SHANGHAI - December 7, 2007:

General Motors has signed up with 198 Chinese automotive parts suppliers this year and it will increase its procurement spending in China by 25 percent in the period between 2005 and 2010, a senior company official said during a China International Auto Parts Exhibition in Beijing earlier this week.

Among the 198 Chinese suppliers, 41 suppliers are based in Beijing and its surrounding areas, 133 suppliers are based in Shanghai area and 44 are in Guangzhou area.

Bo Andersson, group vice president running GM’s global purchasing and supply chain, said G.M. buys 20 million parts a month from 190 Chinese suppliers, but had experienced no quality problems over the past year.

Andersson said 90 percent of the materials and parts in a locally manufactured G.M. car are sourced in China -- 60 percent of them from multinational firms and 40 percent from Chinese rivals.

In the first ten months of the year, China exported a total of $13.2 billion worth automotive parts, up 30 percent from one year earlier. "The total auto parts export in the first nine months has surpassed the total exports last year," said Wang Qinhua, deputy director of State Imports and Exports office of Mechanical and Electricity Products.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html