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GM to outsource from India

March 24, 2004 10:51 IST

Amid the backlash in the US over outsourcing, automobile giant General Motors Corp is planning to shift millions of dollars worth white collar jobs to countries including India.

The move is part of a cost-cutting programme, which aims to slash GM's manufacturing costs by 25 per cent by the end of 2005, an internal report of the company said.

Outsourcing and India: Complete Coverage

GM, by sending $48 million white collar jobs to India and Canada, is trying to keep up with "competitors who are driving relentlessly to reduce costs," the leaked report published by the Detroit News said on Tuesday.

The spending plan represents less than one per cent of the company's annual manufacturing budget.

The report comes amidst increasing protests in the US over the issue of outsourcing during the election year.

Meanwhile, on Monday, Democratic Governor of Michigan, Jennifer Granholm signed two orders giving preferences for state contracts to firms that employ workers in that state.

Many auto giants in the US are headquartered in Michigan and the Governor's decision is aimed at stemming the loss of manufacturing jobs in the state and creating new ones, the report said.

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