Car Maker to Pay Suppliers More Frequently in Revamp.

The article reports on the plan of General Motors (GM) Co. to launch a system starting November 1, 2009 in which suppliers of automotive parts and logistics materials are paid weekly rather than monthly. Such move is made by GM in a bid to improve their cash flow and appease struggling parts manufacturers. The plan is expected to have an impact on 1,400 parts makers and 300 logistics suppliers in North America. GM spokesman Dan Flores cited the benefits of the move, one of which is the reduction of cash-balance requirements.