GM Purchasing Chief Leaves At Critical Time
12 Juni 2009 - 6:28PM
Dow Jones News
General Motors Corp. (GMGMQ) said Friday its purchasing chief,
responsible for the company's $100 billion parts operation, is
leaving as thousands of auto suppliers struggle to stay afloat.
Bo Andersson, GM's group vice president of Global Purchasing and
Supply Chain, is leaving to "pursue other interests," the auto
maker said in a statement. A person familiar with the situation
said Andersson left on his own accord to take a job that will be
announced as soon as next week.
Known for his aggressive, outspoken style, Andersson has been a
key figure in keeping parts flowing to the company as it navigates
through bankruptcy court. Many suppliers face their own financial
crisis amid sinking demand for vehicles and pressure to cut costs
from struggling auto makers.
Andersson, who ushered in a system of global purchasing at GM,
embraced the current crisis and saw it in part as a way to squeeze
out lingering inefficiencies in the company's massive supply
system. Andersson's departure came as a surprise to many suppliers
and those within the company.
GM, like its rivals, have been forced to walk a careful line
between cutting enough costs without straining suppliers so much
they're forced out of business.
Some of the country's largest auto parts suppliers are teetering
on the edge of bankruptcy as continued production cuts erode their
financial stability. In May, Visteon Corp. and Metaldyne Corp.
filed for Chapter 11 protection.
GM, which filed for bankruptcy June 1, is moving to further
consolidate its supply base as part of a restructuring being
overseen by the U.S. government.
Suppliers plan to ask the Obama administration for up to $10
billion in new aid to forestall a crisis triggered by the
bankruptcies of GM and rival Chrysler LLC. Supplier trade groups
are mainly requesting that the government guarantee between $8
billion and $10 billion in loans industrywide so banks will have
the confidence to lend to parts suppliers.
"Bo has made tremendous contributions to the development of our
global purchasing and supply chain strategy as we've globalized our
product line portfolios and manufacturing footprint," GM Chief
executive Fritz Henderson said in a statement.
Andersson joined GM in 1987 as a manager at Sweden-based Saab
AG. Before becoming vice president of global purchasing and supply
chain in 2001, he headed purchasing at GM Europe. Most recently,
Andersson was appointed a group vice president in 2007.
-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.