Selling to

General Motors

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Selling to
General Motors WORKING AND WINNING TOGETHER


Success in todays fiercely competitive worldwide marketplace begins
with product. For General Motors to continue to present opportunities
for our company, our customers, and our suppliers, we must focus on
building vehicles that consumers want to buy and at competitive prices.
At GM Global Purchasing and Supply Chain (GPSC) our primary
responsibilities are to procure the parts and services that go into
developing vehicles and our secondary responsibility is to drive waste
and cost out of our company and improve our overall value to
employees, consumers, and shareholders.

The foundation we rely on to accomplish this is to make sourcing decision based on
performance to our four priorities: Supply Chain & Logistics, Quality/Launch, Program
Management, and Current/Future Business. GMs requirements of our supply base
include developing and executing supply chain capabilities, providing world-class quality
parts, launching new programs at the right quality, the right time, and the right cost,
service that goes beyond expectations, technologies that differentiate our products, and
competitive prices. It is the combination of these elements that will help us succeed.

Suppliers have consistently made outstanding contributions to GM and played a major
role in our success. The entire GPSC team is focused on making sure our best
performing suppliers grow with us. We will work closely with them to develop new
opportunities.

Please use this booklet as a resource to understand GM and the vital role suppliers play
in our success and hopefully we can work together to find your company new
opportunities.

Regards,


Robert E. Socia
Vice President
GM Global Purchasing and Supply Chain
TABLE OF CONTENTS

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General Motors WORKING AND WINNING TOGETHER

Summary of GM Business 3

Gateway into GM 4

Summary of Global Purchasing and Supply Chain 5

Global Purchasing Process . 6

What We Buy . 7

What We Expect 8

What suppliers Can Expect from Us 9

Contacting Us 12

SUMMARY OF GM BUSINESS

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Sometimes success is about determination.
In times of challenge and uncertainty, often
it is those with the strongest will to keep
moving forward who ultimately win. GM has
been moving aggressively to answer the call
for leadership to continue the momentum
we have begun to establish as a company.
While we know we have a long way to go,
we are encouraged by the attitude we see in
GM people, dealers, and suppliers. It is a
desire to win and a commitment to
continuous improvement and achieving our
goals. It is a sense that we will continue to
push for excellence, no matter what. This is
the true foundation of our future success,
and we could not be more proud and
determined.



DETERMINED. CONFIDENT.
COMMITTED.

That is the GM the world sees today:
Determined to be the industry leader in
every measure of performance. Confident
in our ability to innovate, in our energy to
succeed, and in our passion to create.
Committed to win.

Automotive media, analysts, and, most
important, our customers are strongly
endorsing our new products and steadily we
will increase market share around the world
and preparing for future growth. We know
the challenges ahead. We know rival
automakers will introduce more competitive,
more refined vehicles, and we know this is
not time to let up.

We will maintain our momentum by
continuing to focus on increasing our market
share in all our markets around the globe,
on progressing toward industry leadership in
quality and productivity, and on creating
innovative, head-turning cars and trucks.
Under our product development leadership,
we will infuse our vehicle lineup with the
same kind of passion, innovation and
vehicles that consumers around the world
want to buy.

We have just begun to show the world what
innovation, leadership in performance, and
vision mean for General Motors. Over the
past decade, the GM team has worked hard
to become a truly global company, one that
uses its size to our customers advantage.
Today we are moving with speed and
purpose, winning new customers the world
over, and making them proud to be part of
the GM family.

The road ahead is long and challenging, but
momentum is clearly on our side. We are
determined to build on that momentum as
we move forward and we would like to bring
our best performing suppliers with us.


GATEWAY INTO GM

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Any successful business relationship is a
two-way street. While GM employs a
variety of tools and programs to choose,
support, and strengthen valued suppliers,
those same suppliers represent a pool of
talent and innovative ideas that in turn help
and support GM.

Main avenues through which new suppliers
can bring a product or an idea are outlined
in this brochure along with an Internet link to
help you get started selling your products
and services to GM.

GIFT, ENTERTAINMENT, AND GRATUITY
POLICY

Consistent with the values inherent in the
GM vision, GMs policy regarding gifts,
entertainment and other gratuities offered
GM by suppliers emphasizes the companys
determination to base business done with
suppliers exclusively on the superior value
of goods and services purchased. All GM
employees everywhere will conduct GM
business with integrity and adhere to the gift
and gratuity policy as stated in this
brochure.

The Gift, Entertainment, and Gratuity
Policy is global in scope and application. It
reads in part:

Both as a matter of sound procurement
practice and basic business integrity, we at
GM must make our purchase decisions
solely on the basis of which suppliers offer
GM the best value of goods and services
we need. We avoid doing anything that
suggests that our purchase decision may be
influenced by any irrelevant or improper
consideration whether illegal, such as a
kickback or bribe, or technically legal, such
as personal friendship, favors, gifts, or free
entertainment.



Consequently, it is GMs policy that no GM
employees accept any gift, entertainment or
other gratuity from any supplier to GM or
bidder for GMs business, including supplier
units which are part of GM. This policy
applies to all employees whether or not they
are directly involved in purchasing activities.

The Gift, Gratuity, and Entertainment policy
is put in place to ensure ongoing ethical and
intelligent business practice. GM
employees have been advised that the best
course of action always is to decline any
gift, entertainment or other gratuity from any
supplier. However, in execution of this
stated policy, a certain degree of common
sense should prevail. The introduction of
items of nominal value e.g.: yellow sticky
pads, logo pens, and similar items into a
business meeting should not be presumed
to invalidate that meeting.

AWARELINE

A supplier who observes actions taken by a
GM employee that seem to conflict with the
companys stated Gift, Gratuity, and
Entertainment policy may call the GM global
confidential toll-free GM AWAREINE at 1-
800-244-3460.
GLOBAL PURCHASING AND SUPPLY CHAIN

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GM Global Purchasing and Supply Chain
(GPSC) is responsible for procuring all
goods and services used by GM and its joint
venture and alliance partners in all four
business-regions of the world. This
includes parts used in the production of
vehicles and all products and services used
in the support of the development and
production of vehicles. Because of this, GM
suppliers are able to do business in
unprecedented volumes and are offered an
opportunity to expand their own operations
worldwide.

GPSC has adopted an integrated
organizational structure to work effectively
in todays business environment.

Purchasing Regions around the world are
led by executives that have the
responsibility and resources responsible for
the execution and implementation of
sourcing decisions.


























GLOBAL PURCHASING AND SUPPLY CHAIN

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Commodity executives are responsible for
the commodity strategies across all regions
and are accountable for results from a
global perspective. They work closely with
process executives to drive integration and
they work together to ensure each sourcing
decision and strategy is the best for GM and
that there is a balance between worldwide
and regional goals and objectives.

Supply Chain is a critical part of the
structure. Supply Chain is responsible on a
worldwide basis for the flow of all materials
and components to manufacturing facilities
and it is also responsible for the outbound
distribution of vehicles to dealers.

GLOBAL PURCHASING PROCESS

GPSCs decision-making process is truly a
global initiative. A weekly global
teleconference gathers all GPSC leaders
including the GPSC vice president,
commodity, regional, and process
executives to review and recommend
sourcing decisions and to set strategies and
analyze results. GM sources $130 billion
worth of goods and services annually.

GPSC has Creativity Teams that are in
place to research, gather, and analyze
opportunities and then forward
recommendations to the sourcing table.
The Creativity Teams also implement
sourcing decisions for components,
modules, systems, and services on a global
basis. Creativity Teams members include
representatives from purchasing,
engineering, design, quality, marketing, and
finance. These teams are managed by the
Commodity executives and meet weekly to
coordinate global strategies.

GPSC decision making is supported by two
processes Advance Purchasing and
Global Sourcing that ensure decisions
being made are the best for GM and that
they remain good business decisions for
GM.

Advance Purchasing is the entry point for
new components, modules and systems not
yet introduced on GM vehicles.

The Advance Purchasing Process operates
by utilizing specifications from Engineering
when executing a sourcing process to
determine the appropriate suppliers. It
facilitates the evaluation of multiple
alternative materials, processes,
technologies, and design proposals prior to
GM locking into a specific design. The
process allows GM to look at the entire
corporate product portfolio on a worldwide
basis to find opportunities for
communization, cost savings, mass
reduction, quality improvements, and the
introduction of advanced technologies.

Global Sourcing is the process used to
work with existing suppliers to ensure that
their products are benchmarked to world
class standards for quality, service,
technology, and price.

GLOBAL PURCHASING AND SUPPLY CHAIN

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WHAT GM BUYS

CHASSIS/ICE -

The Chassis team purchases parts that
typically cannot be seen from outside of the
vehicle. Some of Chassis components are
more visible to the customer such as tires,
wheels, and steering columns.

BODY/EXTERIOR -

The Body/Exterior team purchases raw
materials and parts that make up the
exterior, framework and structure of our
vehicles such as steel, sunroofs and
stampings.

ELECTRICAL SYSTEMS,
BATTERIES/HYBRIDS -

The Electrical Systems, Batteries/Hybrid
team purchases parts powered by electrical
connections such as radios, switches, and
electronic modules. The team is also
responsible for purchasing parts that
provide an electrical connection throughout
the vehicle such as wire harnesses,
connectors, and batteries. These parts are
both visible to the customer and hidden
within the vehicle.

HVAC/Powertrain Cooling -

The HVAC/Powertrain Cooling team
purchases compressors, hoses and lines,
and other cooling components.

INTERIOR/SAFETY -

The Interior/Safety team purchases parts
that can be seen while sitting inside the
vehicle. The team consists of three main
groups; Hard Trim, Soft Trim and Safety
related components. These parts have
significant impact on customer perception
as they are not only visible but come in
contact with the customer on a daily basis
(i.e. Seats, Steering Wheel, Center
Console, Door Trim, etc.).


POWERTRAIN

The Powertrain team purchases
assemblies, component parts, electrical
systems, and raw materials that are used to
make all engines and transmissions.


INDIRECT/MACHINERY & EQUIPMENT

The Indirect team purchases materials that
support the building of a vehicle, rather than
being directly assembled onto a car or truck,
e.g.: industrial, building, janitorial and
business supplies; spare parts; corporate
services; health care; and sales and
marketing services and agencies.

Customer Care / Aftersales (CCA)

The CCA team purchases and insures
availability of all components covering all
commodity groups. These parts are
required for servicing customer vehicles as
well as supplying aftersales component part
needs.



GLOBAL PURCHASING AND SUPPLY CHAIN

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WHAT GM EXPECTS FROM SUPPLIERS

The successful GM supplier optimizes
design and manufacturing on a world class
level, uses environmentally responsible
practices, and adopts a lean manufacturing
philosophy. All suppliers are measured by
their performance in the following areas:

SUPPLY CHAIN & LOGISTICS

Achieve a world class supply chain focused
on quality and total cost

QUALITY / LAUNCH

Implement quality initiatives

PROGRAM MANAGEMENT

Launch new programs at the right quality,
right time, and right cost

CURRENT / FUTURE BUSINESS

Best total enterprise cost

ISO/TS 16949 CERTIFICATION

ISO/TS 16949 is a global set of quality
standards adopted by the International
Automotive Task Force (IATF) that includes
GM. ISO/TS 16949 incorporates
automotive quality system standards and
requirements utilizing the world standard of
ISO-9000 as the foundation. Supplier
organization compliance to ISO/TS 16949
including vehicle manufacturer customer
specific requirements can result in
certification that satisfies the quality system
requirements of GM and the other IATF
automotive manufacturers.

LEAN MANUFACTURING

Lean Manufacturing (the production of
durable goods with a minimum consumption
of capital investment, floor space, labor,
materials, time, and distance) is key to the
implementation of GMs corporate vision.
Lean material flow concepts are an
essential part of the total Lean Production
System. The responsibility to adopt a lean
philosophy is shared by all GM groups. For
GM to be successful as low-cost producer
of quality vehicles, GM suppliers also must
be committed to lean ethic.

LOGISTICS

GM strives to use the most economical,
efficient, and innovative methods available
to manage the movement of raw materials,
components, and vehicles. To coordinate
the transportation network with
manufacturing activity, GM relies on:

Efficient, effective design and use of
containers.
Just-in-Time (JIT) manufacturing.
Utilization of various distribution
strategies including maintenance of
regional distribution facilities and
synchronous support centers for JIT
rail, as well as use of third party
management for some
transportation services.


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WHAT SUPPLIERS CAN EXPECT FROM
GM

In order to increase the overall performance
of our suppliers, GM has established a
number of tools to help suppliers help
themselves.

GLOBAL SUPPLIER QUALITY
IMPROVEMENT PROCESS

Supplier participation in the GPSC quality
improvement process is essential for
suppliers to earn increased business with
GM in any region of the world. The process
identifies 16-steps, the first of which are
designed to help suppliers understand GMs
business procedures around the world. The
second set of eight emphasizes the
continuous improvement process and
elimination of identified quality issues.

ADVANCE PLANNING & PROBLEM
PREVENTION (1 8)
1. Potential Supplier Assessment An on-
site evaluation of a potential suppliers
ability to meet minimum systems
requirements.
2. Sourcing Decision Sourcing
Committee approval of a recommended
source.
3. Advanced Product Quality Planning
(APQP) & Control Plan definition and
establishment of steps necessary to
assure that a product satisfies the
customer.
4. Pre-Production Meeting meeting to
establish customer requirements,
including part qualification.
5. Preproduction Part Quality Process
(PPQP) - includes specification of
requirements for prototype parts
(common industry practice).
6. Productions Part Approval (PPAP)
7. Run @ Rate (GP-9) physical
verification that the supplier production
process is capable of producing quality
products at quoted rates.
8. Early Production Containment (GP-12) -
represents significant enhancement of
the suppliers PPAP, and is synonymous
with the Pre-Launch Control Plan
referenced in the Advanced Product
Quality Planning and Control Plan
Reference Manual.

PROBLEM RESOLUTION (9-16)
9. Continuous Improvement (GP-8)
definition of the suppliers responsibility
to have an ongoing process for
continuous improvement.
10. Performance Monitoring (PPM)
measurement of supplier performance,
providing communication and driving
focused improvement.
11. Problem Reporting & Resolution (PRR,
GP-5) communication process for
reporting and resolution of identified
supplier problems.
12. Controlled Shipping (Level 1)
containment process at the supplier
location supplementing GP-5, if
necessary.
13. Controlled Shipping (Level 2) problem
containment process under customer
control, administered by an outside
organization at the suppliers expense.
14. Quality Workshops workshop
conducted at the supplier location to
resolved specific quality issues.
15. Supplier Quality Improvement Meeting
meeting between supplier and GPSC
management.
16. Global Sourcing ongoing global
search for the best value for the
customer, can result in re-sourcing of
the business if desired quality/value
cannot be achieved by original supplier.
GLOBAL PURCHASING AND SUPPLY CHAIN

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SUPPLIER DIVERSITY PROGRAM

GM has a longstanding commitment to
working with suppliers from diverse
backgrounds. Our commitment dates back
to 1968 when we were the first automotive
company to initiate a program dedicated to
supplier diversity. Today the companys
ongoing commitment has resulted in billions
of dollars being spent annually with diverse
businesses.

The scope of our program includes the
following business entities:

Ethnic Minority-Owner Business
Enterprises:

African American
Asian
Hispanic
Native American

Women-Owned Business Enterprises

Small Business Enterprises:

Small Business Concerns
Service Disabled Veteran-Owned
Veteran-Owned Small Business
HUB Zone Small Business
Small Disadvantaged Business
Women-Owned Small Business

A minority supplier is a company within the
United States, whose majority ownership is
51% owned and controlled by an individual
or group certified as a minority by the
National Minority Supplier development
Council (NMSDC) or an affiliated council.
Minority Principles must control daily
business operations as well as making
decisions.

A Woman Business Enterprise (WBE) is an
independent business concern that is at
least 51% owned and controlled by one or
more women who are U.S. citizens or Legal
Resident Aliens; whose business formation
and principal place of business are in the
US or its territories; and whose
management and daily operation is
controlled by one or more of the women
owners. GM recognizes the Women
Business Enterprise National Council
(WBENC) certification for women-owned
companies in its program.

The law defines a small business concerns
as one that is independently owned and
operated and which is not dominant in its
field of operation. GM recognizes Small
Business Administration (SBA) certification
for small companies in its program and
specifically seeks opportunities with the
categories listed above.

Additionally, GM encourages its Tier 1
suppliers to purchase goods and services
from certified diverse companies. GPSC
tracks purchases from diverse supplier
companies for all materials, goods, and
services purchased, whether utilized within
GMNA or other General Motors regions.

For more information about GMs Supplier
Diversity Program, please visit:

www.gm.com/supplierdiversity


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SUPPLIER OF THE YEAR AWARDS

GM suppliers are part of the companys winning strategy, and
each year GPSC recognizes the best performing suppliers at its
Supplier of the Year Awards ceremony. In the course of the
celebration, selected suppliers are given the opportunity to visit
with top GM executives and are made privy to details about GM
strategies and future business plans. The event kicks off a year-
long commitment from GM to enhance its relationship with its best
suppliers, specifically through the GM supplier champion program
which matches award winners with a GM executive. The GM
champion will help the winners to devise a business plan that helps them to continue to grow
their business with GM.






























HOW TO CONTACT US

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Selling to
General Motors WORKING AND WINNING TOGETHER

Whether you are a supplier of direct material auto components, manufacturing equipment, or
services such as banking, insurance, construction, etc. . . . .if you have ideas or think you can
help us, we want to hear from you.

Just click on the link below and you will be taken to the GM New Technology Ideas website
where you can submit your information online.

Good luck and thank you for helping General Motors.

www.gmideas.com