General Motors Wants To Keep China Out Of Your Next Car
General Motors is pushing aggressively to cut China out of its supply chain. The automaker has asked thousands of its suppliers to eliminate Chinese-sourced parts and materials before 2027.
Key Points
- General Motors has ordered thousands of suppliers to eliminate Chinese-made parts and materials within the next two years
- GM executives say the initiative is designed to protect the automaker from future geopolitical shocks and maintain production stability.
- Industry experts warn that replacing China’s deeply integrated manufacturing network could take years and significantly raise costs.
The effort is part of a strategy to insulate its North American operations from the flash bang of trade instability, geopolitical tensions, and tariffs.
According to multiple sources familiar with the plan who spoke with Reuters, GM first started talking about this play with suppliers late last year. IT gained new urgency this year once U.S.–China trade tensions turned ballistic amid a series of disruptive tariff swings under the Trump administration.
The directive covers everything from electronics and raw materials to basic hardware used in GM’s North American vehicles. While the automaker already prefers to source parts from within the region, it is now open to working with non-U.S. suppliers outside of China to fill the gap. GM’s sourcing restrictions also apply to countries under U.S. trade sanctions, including Russia and Venezuela, though China remains the biggest concern—no one is making car parts in Venezuela as of late.
GM has been one of the most proactive automakers in trying to move away from Chinese dependence, especially when it comes to critical EV materials. The automaker has partnered with U.S.-based rare-earth suppliers and invested in a Nevada lithium mine to secure future battery materials.
“We've been working now for a few years to have supply chain resiliency,” GM CEO Mary Barra said during GM’s quarterly conference call in October.
Shilpan Amin, head of GM’s global procurement, said last month that the potential risk of supply disruptions is forcing the automaker to step away from sourcing parts from the lowest-cost countries. “Resiliency is important — making sure you have more control over your supply chain and you know exactly what is coming where,” he was quoted as saying.
But China has spent decades building an ecosystem of specialized manufacturers for automotive lighting, electronics, and precision tool-making—industries that are not easily replicated elsewhere. “It’s a big effort. Suppliers are scrambling,” one executive at a major parts manufacturer told Reuters.
Industry groups say the process of unwinding these long-standing dependencies could take years. “In some cases this has been 20 or 30 years in the making, and we’re trying to undo it in a few,” said Collin Shaw, head of MEMA, the Vehicle Suppliers Association. “It’s not going to happen that fast.”
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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Not going to happen. Trump's attack on education is already resulting in fewer and fewer newly trained engineers, while the Chinese are already producing more engineers than even second place India. U.S. ranks around 4th or 5th in the world but will likely drop a couple of more notches during the decade or two it will take to attempt to recover from Trump's war on education. I suspect that eventually GM, Ford and Stellantis will be forced into business "arrangements" with Chinese auto companies if they wish to survive.
Ha! Sorry, but I don't buy your conclusion. Domestic mfrs. problems started when using Chinese components instead of long-proven US suppliers. These suppliers have been waiting for this opportunity to demonstrate their products worth to US mfrs. for decades.
But automakers CEOs wanted the big bonuses they got by switching to Chinese suppliers while closing US plants. They failed to realize that they lost major sales when all those laid-off employees couldn't buy their products anymore. I don't care how many engineers China and India have......the US has more than enough talented people to satisfy the demand. And as for Stellantis--good riddance.😄