GM searches for new supply chain after Chinese factory explosion


GM (NYSE:GM) has asked Dicastal, its main Chinese supplier, to find an alternative source of components after a Zhongrong Metal Products plant exploded on Saturday killing at least 69 people and injuring approximately 200.

The Zhongrong factory made wheels that were supplied to GM through Dicastal - its tier-1 component supplier.

General Motors notes that yesterday's accident will not cause any immediate impact on its production because it currently has "sufficient inventory".

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Comments (17)
  • philli66
    , contributor
    Comments (66) | Send Message
     
    What about looking in the USA for your components!
    3 Aug 2014, 10:27 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    What about expressing condolences to the families of the killed workers, and to the injured?

     

    I've been impressed with how aggressively Mary Barra has handled the recall issues, but clearly GM still has further progress to make in the social skills department.
    3 Aug 2014, 08:37 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    Bloomberg was a bit more thorough in its report and included "The company [GM] extends its sympathy to families of the victims and those injured in the tragedy, it said." So GM does have more social skills than was reported above.
    3 Aug 2014, 08:49 PM Reply Like
  • TAS
    , contributor
    Comments (3906) | Send Message
     
    Looks like the wheels have come off at GM :)
    3 Aug 2014, 10:36 AM Reply Like
  • grepa
    , contributor
    Comments (72) | Send Message
     
    Does anyone know whether other auto manufacturers source from this Chinese plant?
    3 Aug 2014, 11:54 AM Reply Like
  • lemm
    , contributor
    Comments (1199) | Send Message
     
    Yes grepa, from Zhongrong Metal Products Co Ltd's web site,they supplied GM and many other car makers.
    3 Aug 2014, 01:25 PM Reply Like
  • grepa
    , contributor
    Comments (72) | Send Message
     
    Thanks!
    4 Aug 2014, 02:22 AM Reply Like
  • martinjg
    , contributor
    Comments (45) | Send Message
     
    Let's see...69 dead, 200 injured...hey, at least it won't impact their production.
    3 Aug 2014, 12:58 PM Reply Like
  • User19724071
    , contributor
    Comments (2) | Send Message
     
    philli66, GM sells more vehicles in China than it does in the USA.
    3 Aug 2014, 01:07 PM Reply Like
  • lemm
    , contributor
    Comments (1199) | Send Message
     
    Most likely the wheels that are made there are for the cars that are made there.It is to expensive to export wheels from the U.S.to China,philli66.
    3 Aug 2014, 01:32 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4663) | Send Message
     
    With so much global sharing in engineering and design and parts, how many of the
    millions of GM cars made in China, not to mention Europe and Latin America have deadly defective switches and other parts? ...funfun..
    3 Aug 2014, 02:39 PM Reply Like
  • JDoe20
    , contributor
    Comments (1410) | Send Message
     
    Truly sadsad and shameless. May family and friends of the victims be comforted by the thoughts and prayers of the millions of people worldwide who morn their tragic deaths.
    4 Aug 2014, 06:52 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4663) | Send Message
     
    Ah…yes…We're sure the top executives and ethically crippled engineers of this corrupt General Motors Company, along with their PR operatives are all busy shedding tears, and offering up "thoughts and prayers" for the hundreds of victims of the criminal negligence of General Motors and its Management secretly involved in millions of their deadly defective GM cars.

     

    If that is not counterfeit corporate compassion, folks, we don't know what is!

     

    Whom do these fakers in Ren Sin think they are fooling? Not intelligent consumers and not intelligent investors!

     

    …funfun..
    4 Aug 2014, 06:59 PM Reply Like
  • ggillin
    , contributor
    Comments (46) | Send Message
     
    Let us thank our Lord for OSHA in the 'Good-O-USA' where dust control is under close supervision for just this reason. Cost's more sure, but we go home to our family's.

     

    I think most people can read between the lines what's being said here.
    3 Aug 2014, 04:26 PM Reply Like
  • User19724071
    , contributor
    Comments (2) | Send Message
     
    funfun, you are off topic. This article is about a tragic accident at an automotive supplier. We all know that you like to bash GM every chance you get, usually repeating the same old rhetoric. So for once, please show some respect and keep your comments constructive and on target.
    3 Aug 2014, 04:36 PM Reply Like
  • lemm
    , contributor
    Comments (1199) | Send Message
     
    User19724071,funfun did the same thing a few months ago when some poor contract worker was killed in a GM plant when a tank of chemicals exploded.I complained to him about it and all he did was call me a GM ( bunch of big words) sympathizer ,or some thing like that.Getting pretty sad.
    3 Aug 2014, 06:08 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
     
    Sad that the internal controls don't protect the lives of workers at places that manufacture the components for industry's associated with General Motors. However unlike the US deaths and injuries, the Chinese authorities has detained two top executives at Zhongrong and may likely execute them or place them into lengthy prison sentences for the deaths and injuries.
    4 Aug 2014, 12:50 PM Reply Like
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