DETROIT -- General Motors' top purchasing executive says he is buttressing GM's cost-cutting efforts with a new plan aimed at reducing an $86 billion global purchasing bill.
Bo Andersson says the success of GM's three-year, 20 percent cost reduction plan prompted the program being launched this year. Automotive News estimates the current program yielded savings of about $10 billion.
The so-called "20/3" program was for GM's top 250 global suppliers. All 250 were required to participate and given individual cost-cutting targets.
"We have a much better understanding of which suppliers are doing the right things," Andersson said in an interview with Automotive News last week. Andersson is vice president of global purchasing and supply chain.
Development of a new program comes as the automaker continues to bleed red ink. Last month, GM posted a $286 million loss in the second quarter, dragged by a $1 billion-plus loss at its North American automotive operations.