DETROIT, (Reuters) – General Motors said it has entered an agreement with a third-party inventory management company to ensure access to future supply of critical parts.
The automaker said in a Tuesday regulatory filing that it has set up a $4.5 billion purchasing facility, under which it will arrange for an outside firm, Procura Auto Parts, to purchase certain parts from suppliers, freeing up GM’s working capital.
- The program is aimed at securing “certain critical inventory” GM would need to continue making cars in the event of supply chain disruptions, such as natural disasters, a cyberattack or excess demand, it said.
- Banks including JPMorgan Chase and Santander will fund Procura, backed by GM’s payment guarantees, it said.
- The automaker did not specify which parts it deems critical under the agreement, which is to last three years.
- Procura, which has been in the inventory management business since 2015, operates from London, Frankfurt and New York, according to its website. The company buys, sells and manages commercial goods and materials.
- Automakers have more actively managed supply chains following the COVID-19 pandemic, which showed how vulnerable they were to disruption as a result of supply shortages, especially of computer chips.
Reporting by Kalea Hall; editing by Mike Colias and David Gaffen
