Bo Andersson was General Motors' global purchasing group vice president up until last Friday, when he suddenly resigned without warning. Now, we appear to know why he left – Automotive News is reporting that Andersson will become CEO of GAZ, the Russian consumer and military vehicle maker.
Automakers have long tried to reduce the cost of parts by sourcing more items from suppliers in low cost countries. Until now, the cheap labor overseas was enough of a savings to cover the cost of shipping parts back to North America. But, the increased cost of fuel means that it suddenly costs a lot more to send components from places like China, India and elsewhere to the U.S. GM VP of Purchasing Bo Andersson has said the company will look on a case by case basis at sourcing suppliers closer
It's no secret that the auto industry's most profitable vehicles are also the hardest hit when gasoline prices climb past consumers' comfort levels. Bo Andersson, the man behind GM's purchasing decisions, says that the tipping point currently hovers around $3.30 a gallon. At that price, sales start to slow, causing a world of hurt for GM and the other automakers. But, he pointed out another rising cost which hurts the industry: shipping. As the auto market shifts towards sourcing parts from all