GM plans to save $4 billion this year to cut spare parts expenses General Motors Corp. said on January 25th, 2002 that the company is making efforts to reduce its spending on spare parts and expects to save $4 billion this year. General Motors expects this year's sales in major markets will drop sharply, in the US market will drop 10% to 12%, so savings will be the key factor for GM to maintain profitability. General Motors hopes to spend its spare parts by co-sourcing components with its partners. Partners include Suzuki Motors of Japan and Fiat Autos of Italy. Common procurement allows GM and its partners to save on economies of scale. General Motors plans to use the strength of the US dollar exchange rate for international procurement to save costs.
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