|SHANGHAI, People's Republic of China - Shanghai General Motors
this year plans to buy $158 million worth of automotive parts and components made by some
200 Michigan suppliers, creating and sustaining jobs in the state.
The $1.5 billion
joint venture between General Motors and the Shanghai Automotive Industry (Group) Corp.
builds Buick sedans and wagons for Chinese consumers. The products, based on North
American designs, are customized for China.
The joint venture, which will celebrate its first anniversary next week (April 12), is
closely linked to Michigan in many ways - from the $230 million of Michigan-made major
equipment and machinery installed in the state-of-the-art manufacturing complex to the
training of the Chinese people who work there.
"SGM is the epitome of how a global company like General Motors can create and
sustain jobs for U.S. workers," said Phil Murtaugh, executive vice president of the
joint venture. "Without our bill of materials, those jobs probably would not
Twenty-three percent of the value of all SGM machinery and equipment contracts was
sourced through 41 Michigan suppliers. Nearly 86 percent of the spending was in the
Greater Detroit area.
"Last year, we imported more than $270 million from North American suppliers, and
the majority came from Michigan,'' said Dave Whitman, deputy director of purchasing at
SGM. "We forecast that this year, we will require nearly $160 million dollars of
Michigan-produced parts to support our build plans."
The training of the Chinese work force at SGM had a lot of help from Michigan, too.
Twenty engineers from Brighton helped get the Powertrain plant ready, and 80 Chinese spent
from three days to two weeks in the Warren, Bay City and Romulus Powertrain facilities.
(April 8, 2000)