South Korean media: General Motors wants to "decouple" from China's supply chain? It's not that easy!
On December 10, the South Korean media "Global Economy" published an article stating that one of the three major American automakers, General Motors, is requiring thousands of parts suppliers to stop relying on Chinese parts.
According to Reuters, General Motors has recently asked its suppliers to move the source of raw materials and parts outside of China, and has set a deadline of 2027 for some companies to completely stop using Chinese parts.
It is reported that after President Trump's re-election, the trade war tariffs escalated again, and General Motors' measures began to accelerate in the spring of this year.
General Motors explained that this move was not due to political considerations, but to enhance the resilience of the supply chain. At last month's earnings call, General Motors CEO Mary Barra said: "We try to purchase parts in the countries where vehicles are produced. We have been working for years to ensure the resilience of the supply chain."
It is reported that General Motors is adjusting its supply chain, focusing on vehicle parts produced in North America, and has already excluded countries under sanctions such as Russia and Venezuela. China remains the largest supplier of automotive parts, making it difficult to find alternative suppliers.
General Motors has previously begun to reduce its reliance on Chinese battery raw materials and semiconductors. This can be seen in its collaboration with a US rare earth company and its investment of hundreds of millions of dollars in a lithium mine in Nevada. However, the difference in this measure is that it not only covers core materials for electric vehicles, but also includes general parts such as lighting, electronic components, and molds.
Industry insiders also point out that it is unrealistic for General Motors to get rid of its reliance on China. A senior executive of a large parts manufacturer said: "Parts manufacturers are competing to find alternative suppliers. The Chinese lighting, electronics, and mold industries have deep roots and are difficult to replace in the short term."
Original: toutiao.com/article/1851083042882572/
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