by Dan Perkins

Source: GM News Release

When it comes to providing leadership in the area of supplier diversity, General Motors (GM) is on a roll.  On Tuesday. October 5, 2004, the Michigan Minority Business Development Council (MMBDC) named General Motors its Corporation of the Year.  The MMBDC honor was presented to GM during the Council’s annual dinner at Cobo Center in Detroit. GM was praised for having an outstanding supplier diversity procurement program, which includes mentoring minority suppliers.  The auto giant was also praised for increasing its level of purchases from minority suppliers. 

The award is the latest bestowed upon GM for its efforts to promote supplier diversity within the automotive industry. Last month, GM received Corporation of the Year honors from the Tuck School of Business at Dartmouth College, and in April, GM received Corporation of the Year honors from the Native American Business Alliance.

E. Delbert Gray, president and CEO of the MMBDC, said, “Since the MMBDC was founded in 1979, the automotive industry has always taken a leadership position in driving supplier diversity in their companies and in our communities.  We congratulate General Motors on its recognition as the 2004 Corporation of the Year in the OEM (Original Equipment Manufacturer) Category.”

GM was the first in the automotive industry to establish a supplier diversity program in 1968.  Since that time, the company has been a leader in minority supplier development, purchasing more than $44 billion from Tier 1 and Tier 2 minority suppliers. In 2003, purchases amounted to $7.2 billion from Tier 1 and Tier 2 minority suppliers, a record for any automaker. (Tier 1 suppliers are companies that have extended strategic relations with GM. Tier 2 suppliers are businesses that provide Tier 1 suppliers with goods and services in support of GM contracts).

The MMBDC Award was also given in recognition of GM’s leadership in mentoring and growing minority suppliers.  GM currently mentors 50 minority suppliers, and provides them with the leadership, direction and resources required to bolster their strategic capabilities. GM also makes financing available to minority suppliers through Motor Enterprises, Inc., a subsidiary formed by the automaker in 1970.

“For GM, being the best means having a minority supply base that can perform well, even in a challenging market,” said Bo Andersson, GM Vice President of Worldwide Purchasing, Production Control and Logistics. Andersson served as chairman of the MMBDC in 2002 and 2003.

Being recognized as a leader in supplier diversity, particularly within the automotive industry, comes from having an organization that understands and values minority suppliers.  "The GM Supplier Diversity team has worked hard to ensure that minority suppliers are provided opportunities to do business with GM," said V. Diane Freeman, senior manager of GM's Supplier Diversity Program. "The team is focused on supporting minority growth throughout the supply chain.” 

Seeding Excellence in the Supply Chain and Beyond

To reinforce the importance of supplier diversity, GM requires it larger suppliers, also known as Tier 1 suppliers, to source a minimum of 8 percent of their subcontracted business on GM contracts to certified minority companies.

In addition to expanding opportunities for minority suppliers throughout its supply chain, GM has partnered with other leaders to foster excellence among the next generation of minority scientists and engineers.

In 1999, General Motors entered into a corporate alliance with EDS, Sun Microsystems Inc., UGS, and The Partners for the Advancement of Collaborative Engineering Education (PACE) to enhance engineering, science and art curricula that prepare students for careers in the automotive, technology and engineering fields.  

Since its founding, the alliance has provided substantial resources to institutions of higher education.  This year, (PACE) selected Howard University to join its academic partnership and receive an in-kind contribution of software and other technology valued at $70.6 million. The in-kind contribution, which is the largest in the University’s history, includes hardware, software and training for computer-based product management, engineering, design and manufacturing functions.

PACE’s contribution supports Howard’s five-year initiative, which aims to raise $250 million to enhance the University’s academic programs and create new facilities for research and learning. To date, the initiative - called “The Campaign for Howard: Leadership for America and the Global Community” - has raised more than $163 million in contributions.

The software contribution will enable Howard's students to engage in the design of a wide range of projects, from airplanes to hybrid vehicles to biomedical devices.

“Digital sculpting, the creation of computer designs for three-dimensional objects, has become one of the hot skills for designers around the world” said Ed Welburn, Vice President, Design, GM North America.  “Whether designing new cars or creating fantastical worlds on the movie screen, digital sculptors are literally changing the way the world looks.  So, it is important that students have the opportunity to work with the latest math-based tools,” he added.

Selected universities are invited to participate in the PACE initiative based on several criteria including: a long-term relationship with GM as a primary educational partner and a strong recruiting relationship; strength in design, engineering and science programs; and the institution’s current and intended interest in developing curricula using PACE products and processes. Other PACE institutions include Northwestern University, Virginia Tech and Purdue University.

Howard University, which was founded in 1867, produces more on-campus African-American Ph.D.s than any other university in the world.  Since 1998, the University has produced two Rhodes Scholars, a Truman Scholar, five Fulbright Scholars and nine Pickering Fellows.

Through its participation in the alliance, and its support for Howard University, GM is helping to insure that African Americans and other minorities have the resources needed to continue to contribute to the development of our nation and the world.

The End