GM Shares More Generously With Suppliers Cutting Costs

The new purchasing chief at General Motors Co. is tweaking the auto maker’s “cost reduction suggestions” program, and it could send a few more bucks back to suppliers.

In a nutshell, GM now will share the savings from cost-cutting ideas submitted by suppliers on a 50/50 basis the first year the part or process is implemented. The cost sharing remains 50/50 through the life of the part or ...