GM shaves costs as suppliers move closer to plants

…A General Motors Co. executive says the automaker has been successful in convincing some key parts suppliers to build factories closer to GM’s assembly plants, which cuts transportation costs and helps ensure parts quality.

Magna International Inc. and Comprehensive Logistics Co. Inc. plan to open factories in Spring Hill, Tennessee, early next year to supply GM’s Spring Hill Assembly Plant located less than a mile away. NorthPoint Development, based near Kansas City, is developing the industrial site that eventually could house another five parts suppliers, NorthPoint’s president says.

Chad Meyer, president of NorthPoint Development, said his firm is planning to create parks for GM suppliers near GM’s Fort Wayne Assembly Plant in Indiana and its Lordstown Assembly Plant in Ohio. It already has purchased land near the Fort Wayne plant. The company also is looking to develop a park in the Dallas area; GM has a plant in Arlington, Texas.

“Kansas City and Spring Hill have been so successful, we’re going to do this elsewhere,” he said.

Meyer said by bringing suppliers closer to GM plants, it can boost on-time deliveries. He said GM’s efforts to localize suppliers ultimately will save the company “hundreds of millions of dollars…

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