Car parts manufacturer General Motors Corp. plans to offer incentives to its suppliers, a move that could help revive an industry that has been under attack for years, a U.S. government official said Thursday.
The incentive program will be announced in a White House briefing on Friday, said the official, who spoke on condition of anonymity to discuss the details.
The announcement comes as the Obama administration grapples with the fallout from the death of teenager Zoey Chen in a crash in October 2016.
The auto industry is grappling with a massive recall of millions of vehicles from 2014 that included dozens of recalls and recalls related to safety.
The recalls were the largest since the 2010 Volkswagen emissions scandal, when about a million vehicles were recalled.GM, which was acquired by General Motors in 2011, is under investigation by the U.N. watchdog for its handling of the recall.
In a letter last month to the National Highway Traffic Safety Administration (NHTSA), GM warned that if the U,S.
Department of Transportation (DOT) did not enact a new rule requiring the company to provide certain car parts to suppliers, the company could face legal liability and even penalties.GM has argued that the rule is needed to protect its suppliers from having their vehicles recalled for defects that may have been caused by faulty software or hardware.
The Obama administration in December 2016 issued a directive requiring automakers to make certain car components available to suppliers and suppliers to make car parts available to manufacturers.GM also announced earlier this month that it was creating a supply chain task force that will help it develop incentives to boost the supply chain for its vehicles.
The effort includes creating incentives for companies to create new supply chains and encourage them to create more supply chains.GM is not the only manufacturer under investigation for safety problems in its supply chain.
Toyota Motor Corp. is under fire for failing to report the number of deaths linked to a recall of 2.3 million vehicles last year that included thousands of recalls.
The Department of Justice is also investigating the auto industry for not making safety improvements to its supply chains after the 2014 emissions scandal.
The investigation has focused on whether Toyota was negligent in failing to notify regulators and the public of problems with defective emission control equipment that were discovered before the recall was issued.GM said in a statement that the company “has always offered an abundance of confidence in our suppliers and our ability to meet our customer’s needs, and we have done so since 2009.”GM will also help improve its supply-chain efforts through the creation of a new supply- chain taskforce, which will work with government and industry partners to improve the quality of supply chains, said John D. Lewis, the automaker’s vice president for supply chain strategy.
GM will work closely with the industry on the task force and will also work with other auto companies to increase the supply-chains of suppliers.