GM asks auto parts suppliers to stop using components from China, - Reuters
General Motors has demanded that several thousand of its suppliers completely stop using components from China, reports Reuters citing four sources. The demand arose amid growing dissatisfaction among automakers over disruptions caused by trade conflicts between countries.
What is known
According to the sources, GM management strongly recommended that suppliers look for alternatives to China in terms of raw materials and components. It is reported that the American car manufacturer has set a deadline for some suppliers until 2027. By that time, they will need to sever their ties with China.
GM approached suppliers at the end of 2024, but the initiative became particularly relevant this spring, in the early days of the trade war escalation between the US and China. GM management stated that this is part of a broader strategy to enhance the company's supply chain "resilience".
The geopolitical tension between the US and China has put car company executives in reassessment mode for all of 2025. Constant imposition and removal of tariffs by US President Donald Trump and industry panic over potential issues with rare earth metals and computer chip shortages have forced car companies to reconsider their ties with China, which has long been an important source of components and raw materials.
According to sources, GM prefers to source parts for cars assembled in North America, where the company produces most of its vehicles. However, the company is open to supplies from other regions and countries, excluding China, Russia, and Venezuela.
Source: Reuters
