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Monday, Oct 14
GM to open $200M plant as it looks to slash logistics costs
- General Motors (GM) is today due to open a $200M metal-stamping facility in Texas that is adjacent to the car maker's Arlington factory.
- GM expects the new plant to save it $40M in travel costs, as well as money on the repair of parts that are damaged while in transit.
- The facility is part of GM's strategy of improving its profitability by slashing logistics expenses.
- "We spend billions a year on logistics," said GM CEO Dan Akerson. "Think about that, billions. Any savings I can get...goes right to my bottom line and makes us more competitive."
- One of the factors that has facilitated the new plant are the labor contracts that allows GM to pay new workers lower wages, said Tim Lee, the company's manufacturing chief.