General Motors de México has announced that by the time 2014 is over, it would have invested $14 billion in components from its suppliers − a new record in the 79 years of GM’s operations in Mexico. This is a 16 percent increase from last year.
President and CEO of GM de México, Ernesto M. Hernandez, revealed this during a presentation of the Award for Excellence in Supplier Quality. He explained that purchasing buys more than 190,000 components from suppliers, with about 40 percent for local production and 60 percent for export to other GM manufacturing facilities in North and South America, Europe, and Asia.
“Transactions with Mexican suppliers already represent 16.4 percent of the purchases that General Motors makes on a global level, so we can say that one in six components that GM vehicles around the world use is Mexican in origin,” said Hernandez.
In his message to suppliers, Hernandez thanked suppliers for the world-class quality they deliver, as their drive has been key to GM’s own success that includes 355,000 vehicles, 600,000 engines, and 496,000 transmissions produced in the first half of 2014.
“This aligns with the new purpose and values that GM CEO Mary Barra recently announced: winning customers for life, making our brands − Chevrolet, Buick, GMC, and Cadillac − inspire passion and loyalty, transforming advanced technology in vehicles … and helping the communities where we live and work worldwide,” added Hernandez.
General Motors de México has about 550 Tier 1 suppliers, which mainly specialize in the production of electrical components, harnesses, stamped parts, and interior items. Each week, they send over 5000 components to General Motors plants in Mexico and annually ship over 600 million pieces worldwide.