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GM Builds $4.5B Safety Net for Supply Chains

Wall Street Journal US Business •
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GM is building a $4.5B safety net to keep essential parts flowing amid supply‑chain turbulence. The automaker announced the plan in a regulatory filing, a move designed to give suppliers the capital they need to keep production on track and even stockpile items.

Under the scheme, GM will prefund the purchase of high‑risk components, so suppliers receive funds before the parts are shipped. This arrangement protects them from price spikes and shortages, allowing them to maintain or ramp up output without tying up large amounts of cash.

By keeping the supply chain humming, GM can avoid costly shutdowns on its assembly lines while preserving working capital. The strategy also positions the company to respond quickly to disruptions in a system it calls "more resilient."

Mary Barra has pledged to redesign GM’s supply chain, and the company’s chief executive is already moving ahead with the plan. The story comes amid a broader debate in NYC where NYC Mayor Mamdani is challenging Amazon over last‑mile delivery workers, a conflict that underscores the urgency of reliable logistics.