GM to GE: Japan Does It Better

General Motors is reviewing all contracts with its 5,000 suppliers in search of ways to firm up quality while trimming as much as $4 billion, or 13%, from its $30 billion parts-and-supplies budget. As a result, its longtime relationship with GENERAL ELECTRIC is on the line. A GM supplier since the 1920s, GE makes 60 million tiny light bulbs every year for GM dashboard displays, trunks and glove compartments. Now GM has located a Japanese company whose light bulbs cost 20% more but last 40% longer, and it has challenged GE to close the savings gap.

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