80% Of GM's Chromium-plated Parts Come From China

Plastic plating-80% of GM's chromium-plated parts come from China.
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In 2004, GM announced plans to purchase billions of dollars worth of spare parts in China each year, and by 2009, the total amount of Chinese parts purchased would reach 10 billion US dollars.
It is understood that due to the low prices of Chinese parts, several multinational automobile companies have announced similar purchasing targets for Chinese auto parts. The procurement plans of many companies are currently under way. According to statistics, Ford buys about $3 billion worth of spare parts from China every year, and GM imports products in China including cables, sunshades, automotive fabrics and seat fabrics. In addition, 80% of GM's chrome-plated parts come from China.
Market analysts said that in the past two years, US auto companies often used the "Chinese price" as the standard to make global procurement plans. Many parts suppliers have been forced to lower prices to get a piece of the big orders from European and American auto giants. At present, however, the buying spree of Chinese parts is cooling. The main reason for the cooling is that the "Chinese price" is no longer the lowest price. A German supplier joked: "in the past, GM always talked about Chinese prices, but now we rarely hear this word, probably because Chinese parts are no longer so cheap."
It is understood that rising labor costs, rising prices of raw materials and the appreciation of the RMB have all contributed to the rise in the price of spare parts. A market person said that rising prices could cause multinational car giants to adjust their procurement plans around the world. In addition, he also sharply pointed out that Chinese parts enterprises need to improve their comprehensive competitiveness as soon as possible, and actively solve the problems of aging production equipment, lack of management experience and low level of quality control, so as to improve the market competitiveness of products.
Anderson said GM has a team of 200 people in Shanghai, China, specifically to help parts suppliers improve their own standards. A few years ago, only 1Compact 5 Chinese parts suppliers could meet the general standard, but now the number has reached 1Compact 3. In fact, even if the cost of the "training" team is included in the cost of purchasing parts in China, purchasing in China is still very "cost-effective". But that appeal is waning as prices such as raw materials and labour rise.
Some analysts say Chinese auto parts companies are facing a key turning point. Chinese auto parts companies continue to pursue a low-price strategy, it is difficult to maintain long-term competitiveness.