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.
GM to increase part sourcing from India
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