General Motors has instructed thousands of its suppliers to phase out components sourced from China, according to four people familiar with the matter, as automakers confront growing geopolitical disruptions to their global operations.
The company has asked suppliers to identify alternative sources for raw materials and parts, aiming to move its supply chain away from China entirely by 2027 for some components, the sources said. The directive, first introduced in late 2024, gained urgency this spring amid escalating trade frictions between the United States and China. GM executives reportedly framed the move as part of a broader strategy to enhance “supply chain resiliency.”
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A GM spokesperson declined to comment on the matter. However, Chief Executive Mary Barra said during the company’s October earnings call, “We’ve been working now for a few years to have supply chain resiliency,” adding that the automaker seeks to source components “in the same country where it builds the cars, when possible.” Shilpan Amin, GM’s global purchasing chief, said last month that the company’s strategy reflects the need for greater control over sourcing. “Resiliency is important — making sure you have more control over your supply chain and you know exactly what is coming where,” he said.
The effort comes as automakers respond to shifting U.S. trade policies and uncertainty over tariffs on Chinese goods. Although recent talks between President Donald Trump and Chinese President Xi Jinping led to the rollback of some trade barriers, automakers remain wary of the unpredictable policy environment. Earlier this year, China tightened export restrictions on rare-earth elements used in vehicle components, prompting manufacturers to stockpile supplies.
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GM’s initiative focuses on vehicles built in North America, where it produces most of its global output. The automaker has already sought to reduce reliance on China in key areas such as battery materials and semiconductors, including partnerships with U.S.-based rare-earth producers and investments in a Nevada lithium mine. The new directive extends those efforts to more basic components and materials.
Industry analysts say the shift will take time. “It’s a big effort. Suppliers are scrambling,” said an executive at a major parts manufacturer. Collin Shaw, head of MEMA, the Vehicle Suppliers Association, noted that many supplier relationships with China are decades old. “In some cases this has been 20 or 30 years in the making, and we’re trying to undo it in a few years,” he said. “It’s not going to happen that fast.”
Source: Reuters
