GM Outsources $1b Parts To India

Robert Farago
by Robert Farago
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gm outsources 1b parts to india

GM's new contract with the United Auto Workers (UAW) was sold to all and sundry as a necessary step to protect U.S. jobs. Meanwhile, GM continues to send jobs overseas. The Times of India reports that GM's set to triple parts production on the subcontinent, ramping-up to $1b worth over the next three years. The Indian-made bits and pieces will head-off for GM products worldwide. GM's President and Managing Director of GM India told reporters in Chennai that GM is currently exporting $300m of parts from India. Karl Slym also revealed that The General was planning to set up a powertrain production facility in country. It's not clear if the engines would find homes abroad. That could depend on the success of the Chevrolet Captiva SUV in the Indian market. In an echo of GM's Opel becomes Saturn Astra U.S. strategy, GM will begin by importing the Captiva from Korea. If it's a hit, they'll shift to local production.

Robert Farago
Robert Farago

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  • Jthorner Jthorner on Nov 21, 2007

    Contrary to the arguments that buying a GM car means more "profits" and job in the US than does buying a Japanese transplant I would say that buying GM means they have more money to invest in building factories in China, India and any other low cost country they can find. The Japanese, Koreans and even the Germans are building factories in the US while the Detroit Gang dis-invests just as fast as they possible can.

  • MaxHedrm MaxHedrm on Nov 21, 2007

    That Captiva actually isn't a bad looking "truck".