News From the Auto Industry

– The extent to which GM might have to provide ongoing operating and financial support to Delphi — for example, in the form of long-term supply contracts; and

For this reason, GM already has started working on ways to compensate for the growing cost of steel after 1995 by persuading more stampers to participate in its resale program and lowering its internal manufacturing costs. The company also now has fewer hands involved in the purchasing process by virtue of its centralization program (AMM, Aug. 1), and this is expected to make its buying activities more efficient and economical.