GM Spends $6.6 Billion With Minority Suppliers In 2004.

General Motors purchased $6.6 billion of direct and indirect materials with U.S.-based minority suppliers in 2004, down 8.3 percent overall compared to 2003. Despite reduced overall volumes, GM held the line on its Tier 1 minority spending as it again accounted for $4.2 billion, however, Tier 2 spending totaled $2.4 billion, down from $3 billion in 2003.

“Our Tier 1 minority spend represents more than 9 percent of our $46 billion in U.S. supplier purchases, however, our Tier 2 spend is down. We are working diligently with our Tier 1s to help them identify top-performing minority suppliers that can provide value as Tier 2 suppliers,” said Bo Andersson, vice president GM Global Purchasing and Supply Chain. “Supplier diversity has been a growth area for many years at GM and we continue to lead the automotive industry,” Andersson added.

To support this growth, GM will continue to require its Tier 1 suppliers to source a minimum of 8 percent of its Tier 2 GM business to capable and competitive certified minority companies. GM currently mentors more than 40 minority suppliers, providing leadership direction and resources to grow the suppliers’ strategic capabilities. In addition, minority suppliers are able to receive financing from Motor Enterprises Inc, a GM subsidiary that was formed in 1970. Many of these minority companies are among GM’s top-performing suppliers, in fact last year; nine of the 77 GM Supplier of the Year winners were minority suppliers. GM supplier diversity accomplishments in 2004 also included Corporation of the Year honors from the Native American Business Alliance (NABA), Tuck School of Business, Michigan Minority Business Development Corporation (MMBDC) and the Michigan Hispanic Chamber of Commerce (MHCC). In addition, the NAACP gave GM a Grade of B for supplier diversity. No other automaker ranked higher.

Additionally, DiversityBusiness.com ranked GM 8th among its top 50 organizations for multicultural business opportunities. GM was the first automotive company to establish a supplier diversity program and has spent nearly $51 billion with minority-owned businesses since 1968. For 19 consecutive years, GM Tier 1 minority spending has been $1 billion or more, and from 1999 through 2001 it exceeded $2 billion annually. In 2002, GM’s Tier 1 minority spending was $3.8 billion and in 2003 it was $4.2 billion. About General Motors General Motors Corp.