GM India - make way for more Indian-made autoparts coming to the US - PeachParts Mercedes-Benz Forum

dieseldiehard · #1 08-05-2005, 01:57 PM

NEW DELHI - General Motors Corp. plans to buy $1 billion worth of automobile parts from India each year by 2008 as part of cost-cutting efforts at the world's biggest automaker, a senior executive at its local subsidiary said Friday.

GM currently buys about $120 million in parts from India each year, and the plan to increase those purchases should result in major savings for the carmaker, said P. Balendran, vice president of General Motors India.

"Auto parts in India cost 25-30 percent less than in North America or Europe," Balendran was quoted as saying in a Dow Jones Newswires report. "They are also around 15 percent cheaper than
South Korea and Mexico, but the quality is on a par."

GM India Ltd. is a wholly owned subsidiary of GM, which is based in Detroit.

GM currently buys auto parts, such as castings and forgings, from around 110 suppliers in India, Dow Jones reported.

GM is among several automakers — including Ford Motor Co., DaimlerChrysler AG, Volkswagen AG, Volvo AB and Mitsubishi Motors Corp. — that are sourcing auto parts from low-cost countries like India because of tough competition and rising costs of raw materials.

Glinko · #2 08-05-2005, 02:17 PM

Now that new car smell is going to be replaced by the spicy emination of curry.

*Drumshot.

dieseldiehard · #3 08-05-2005, 07:37 PM

Quote:

Originally Posted by Glinko

Now that new car smell is going to be replaced by the spicy emination of curry.

*Drumshot.

I actually though of sniffing the Baldwin Filter I bought that said "made in India" on it.
Baldwin never replied to my email complaining that the center grommet was not centered, it wobbled around a little when I put the center rod through it and gave it a spin. That is the last Baldwin product I'll ever buy! BTW. it sold for almost twice what a Hengst costs in the first place, so if I read the news correctly, Indian parts cost 25% - 30% less, so I guess Baldwin is making almost that much more profit than they would if the filter was made here in the USA. Shipping jobs offshore? It backfired at Dell, maybe GM will learn the hard way too. Then again maybe not, they have buyers lined up to get "employee discounts" on Chevys. And Ford fell victim to that marketing ploy too. Finally Chrysler is following that gimmick.

Say, do you figure that if enough component parts were made in India Daimler Benz could afford to offer "employee discounts" on new cars? No? Well then I'll take the discount on parts for my W124 moneypit, if that is allright with the new CEO, but if it says "Made in India" on them I won't pay the old prices or any prices because I just won't use them!

Hatterasguy · #4 08-05-2005, 07:43 PM

I would be shocked if GM hasn't gone bankrupt by 2008!

Great more India crap, I don't care what they say parts made their are junk. I would pay twice as much for a part made in Germany.

SD300 · #5 08-05-2005, 07:47 PM

GM worries the current parts are lasting too long so nobody need to buy a new car so soon!

My Mechanic fnd showed me GM parts came from China too. They're making very good profit.

#6 08-05-2005, 09:56 PM

Sounds like GM will have met their internal challenge to further reduce product quality. Somehow, I'm just not surprised at this move.

Gurkha · #7 08-05-2005, 10:18 PM

Believe it or not, MB has been sourcing parts from India since the early 70s, they established quite a few subsidiaries like BOSCH, ZF, Goetze/Mahle etc and today, MB sources the C class diesel as well as the 5 speed tranny from India.

About Indian made parts being crap, thats understandable when most western buyers usually buy from cheap shoddy sources paying the least amount of money so that their pockets could get heavier. if you pay the price here, you can also get the best, evidence the IT sector in India where the right money gets you the best service on earth.

Most Indian made OM616/617 last well over 500,000 miles and this under torturous conditions so I don't think the component quality is any issue whatsoever. This is according to the German engineers posted here.

About Curry, most Indians don't know what is Curry, it is an abberation invented by an Englishman who wanted to market a disgusting concoction of spices to the rest of the world, but I guess, I would take the horrible smell of curry in my auto parts over smelly cabbage or mad cow infested smelly beef smell any day.

iNeon · #8 08-05-2005, 10:22 PM

mmm cabbage

*makes homer simpson noise

pawoSD · #9 08-06-2005, 12:00 AM

I think a lot of non-indian automotive part companies just went: NO!!!

wbain5280 · #10 08-06-2005, 12:15 AM

At least India is a democratic country, the largest one on the planet, as opposed to China.

Hit Man X · #11 08-06-2005, 12:51 AM

My Z was built in Canada... so much for Made in the USA.

GM deserves everything they have coming to them.

I can't wait until that truck sells I have, there's a BMW I must have

Gurkha · #12 08-06-2005, 01:24 AM

Quote:

Originally Posted by wbain5280

At least India is a democratic country, the largest one on the planet, as opposed to China.

India is a democracy alright, a sham at the most, been like that since independence from the British if one can call it that, most politicians have criminal records and those who don't have not been caught yet. Millions are wasted every day, most middle class or educated class don't vote so the poor illiterates are given false hope and manipulated during election time to get votes or in quite a few cases, co-erced with threats. Voting is based on caste, region and religion lines.

Give me China over India any day, just compare Shanghai to Mumbai and you will see my point, I live in India but have taught in China extensively and lived there for almost a year, there is heaven and hell difference, India is chaos, China is organised and safe.

iNeon · #13 08-06-2005, 01:52 AM

you just described the voting process and politicians in our country as well=)

my preference is anything european or american in origin. i generally dont want to purchase goods made with "economically advantageous(sp?)" labor. that just means the product was made by someone who can barely afford shelter and food.

i bought my glasses because they were made in austria and everyone says theyre handsome, but i bought them because ive never heard anything bad about working conditions in austria. do they make use of kathy-lee type labor?

Gurkha · #14 08-06-2005, 02:06 AM

Don't feel bad for the Indian labor, they are far better off than their Chinese counterparts, there is a strong socialist and communist party here who take care of that from time to time. The recent strike at the Honda scooter plant was a prime example of that.

I usually yearn for the made in Japan label myself but sadly, that is becoming a rarity today.

Hatterasguy · #15 08-06-2005, 06:28 PM

I have bought my share junk India Bosch injector nozzels from Phil.

I wouldn't call Phil a "cheap" supplier.

Remember TomJ had to stop rebuilding injectors for awhile because all of the nozels were made in India and crap out of the box.

They havn't been in the game as long as China and other countries and are unable to make parts of the same quality.

Need I remind you guys of the oil filters made in India?

I would pay a premium for parts made in Germany, Japan, or the US. Heck even China is getting pretty good.

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