GM looks to substitute materials to reduce costs
Purchasing VP calls price increases “scary” and outlines upcoming plans
By Dave Hannon -- Purchasing, 10/3/2007 7:35:00 PM
General Motors’ purchasing organization is looking into ways the Big Three automaker can shift away from more expensive commodities, like aluminum and steel to building cars using less expensive materials, like magnesium and plastic.
At a press conference this week in Columbia reported by Dow Jones, Bo Andersson, GM’s group vice president of global purchasing and supply chain, said due to raw material price increases escalating to “scary” levels, GM is looking at material substitution as its next major cost-cutting strategy.
"The first thing is to reduce consumption and the second thing is to find alternatives," he said in the Dow Jones report. "Use less aluminum and more magnesium and less steel and more plastic."
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