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GM Orders Suppliers to Remove China-Sourced Parts From North American Vehicles

The automaker casts the shift as a supply‑chain resiliency move driven by escalating trade risks.

Overview

  • Reuters reports that GM quietly instructed several thousand suppliers to purge China content, with some facing a 2027 cutoff.
  • The directive covers parts used in vehicles built in North America, the company’s largest production region.
  • GM prefers U.S.-based sources but will accept suppliers outside China elsewhere, and it flags Russia and Venezuela as restricted under U.S. rules.
  • Recent policy shocks include new U.S. tariffs, Chinese export controls on rare‑earth-containing auto parts and additional limits in October, plus a halt to Nexperia chip shipments.
  • Suppliers and MEMA warn the transition will be costly and slow after decades of China-focused investment, even as GM advances de‑risking in batteries and materials through rare‑earth partnerships and a Nevada lithium investment.