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As part of a cost cutting plan, GM is looking at increasing its India-sourced component purchases. It plans to buy $1 billion worth of parts from Indian auto component suppliers by 2008, if there proves to be major savings in its strategy. One billion US dollars should by a lot of automotive parts in India. According to GM, parts made in India are 25-30 percent cheaper than those from Europe and American and 15 percent cheaper than parts made in South Korean and Mexico. The cost cutting does not come at a cost of quality either. Other manufacturers, such as Ford, DaimlerChrysler, VW, and Volvo, are looking to source parts from developing countries where the labor cost differential is favorable.



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