{"id":15253943,"date":"2026-08-13T19:06:15","date_gmt":"2026-08-13T23:06:15","guid":{"rendered":"https:\/\/www.inthacity.com\/news\/general-motors-thinks-just-in-time-delivery-is-dead\/"},"modified":"2026-08-13T23:33:53","modified_gmt":"2026-08-14T03:33:53","slug":"general-motors-thinks-just-in-time-delivery-is-dead","status":"publish","type":"post","link":"https:\/\/www.inthacity.com\/news\/general-motors-thinks-just-in-time-delivery-is-dead\/","title":{"rendered":"General Motors Thinks Just-In-Time Delivery Is Dead"},"content":{"rendered":"<div class=\"media-component sl-media js-media-component js-pin-data sl-element sl-significant-element\" id=\"element-191680\" data-pin-params=\"{&quot;url_to_share&quot;:null,&quot;utm_medium&quot;:null,&quot;utm_campaign&quot;:null,&quot;utm_media&quot;:9859375,&quot;utm_syndication_post&quot;:null,&quot;path&quot;:&quot;2026\/08\/13\/15041.jpg&quot;}\">\n<div class=\"rs-photo-wrap js-media-wrapper\">\n<div class=\"media-wrap js-media-wrap js-pin-item relative sl-photo-wrap\" style=\"max-width:min(100%, 720px);aspect-ratio: 1.503\">\n<div class=\"socials flex js-social-btn\">\n                    <a class=\"button float-button share-button sb-button sb-facebook js-fb-share\" data-ht-track=\"Share Facebook Overlay\" aria-label=\"Share on Facebook\"><br \/>\n                        <span class=\"si-facebook\"><\/span><br \/>\n                    <\/a><br \/>\n    <a class=\"button float-button share-button sb-button sb-pinterest js-pin-button js-no-pintack hidden sl-pinterest-button\" data-allowed-for-syndication=\"0\" data-ht-track=\"Share Pinterest Overlay\" aria-label=\"Pin this photo\"><br \/>\n        <span class=\"si-pinterest\"><\/span><br \/>\n    <\/a><\/p><\/div>\n<p>                    <img decoding=\"async\" alt=\"gm admits just in time delivery is dead\" class=\"sl-post-image sl-syndication-image media-item-track\" src=\"https:\/\/cdn-fastly.thetruthaboutcars.com\/media\/2026\/08\/13\/15041\/gm-admits-just-in-time-delivery-is-dead.jpg?size=720x845&amp;nocrop=1\" width=\"720\" style=\"aspect-ratio: 1.503\" loading=\"lazy\" \/>\n                    <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"text-block sl-post-text sl-paragraph sl-element sl-significant-element\" id=\"element-191671\">\n<p>It is equal parts awe-inspiring and terrifying to watch tens of thousands of microscopic plastic clips, wiring harnesses, fasteners, and stamped metal brackets dance in precision sync to spit out a functional 5,000-pound SUV every 60 seconds.<\/p>\n<p><\/p>\n<p>Which brings us to General Motors. <\/p>\n<p><\/p>\n<p>According to a recent Securities and Exchange Commission filing reported by <i> <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-08-11\/gm-sets-up-4-5-billion-plan-to-ensure-supply-of-critical-parts?srnd=phx-industries-transportation\" rel=\"nofollow noopener\" target=\"_blank\">Bloomberg<\/a><\/i>, the General is formally abandoning the holy grail of post-war manufacturing\u2014Just-In-Time (JIT) delivery\u2014in favor of building a massive, off-balance-sheet stash of critical vehicle parts worth up to $4.5 billion. <\/p>\n<p><\/p>\n<p>Because tying up $4.5 billion in cash to stash parts in a dark warehouse makes accountants weep, GM reached a deal with a third-party intermediary named Procura Auto Parts LLC. Procura. Backed by financing from premier lenders like JPMorgan Chase and Banco Santander, Procura will buy and hold the critical inventory from GM&#8217;s key suppliers. GM pays Procura interest and management fees upfront and then formally buys the components only when an assembly line actually needs them. <\/p>\n<\/div>\n<div class=\"media-component sl-media js-media-component js-pin-data sl-element sl-significant-element\" id=\"element-191683\" data-pin-params=\"{&quot;url_to_share&quot;:null,&quot;utm_medium&quot;:null,&quot;utm_campaign&quot;:null,&quot;utm_media&quot;:9859378,&quot;utm_syndication_post&quot;:null,&quot;path&quot;:&quot;2026\/08\/13\/15042.jpg&quot;}\">\n<div class=\"rs-photo-wrap js-media-wrapper\">\n<div class=\"media-wrap js-media-wrap js-pin-item relative sl-photo-wrap\" style=\"max-width:min(100%, 720px);aspect-ratio: 1.503\">\n<div class=\"socials flex js-social-btn\">\n                    <a class=\"button float-button share-button sb-button sb-facebook js-fb-share\" data-ht-track=\"Share Facebook Overlay\" aria-label=\"Share on Facebook\"><br \/>\n                        <span class=\"si-facebook\"><\/span><br \/>\n                    <\/a><br \/>\n    <a class=\"button float-button share-button sb-button sb-pinterest js-pin-button js-no-pintack hidden sl-pinterest-button\" data-allowed-for-syndication=\"0\" data-ht-track=\"Share Pinterest Overlay\" aria-label=\"Pin this photo\"><br \/>\n        <span class=\"si-pinterest\"><\/span><br \/>\n    <\/a><\/p><\/div>\n<p>                    <img decoding=\"async\" alt=\"gm admits just in time delivery is dead\" class=\"sl-post-image sl-syndication-image media-item-track\" src=\"https:\/\/cdn-fastly.thetruthaboutcars.com\/media\/2026\/08\/13\/15042\/gm-admits-just-in-time-delivery-is-dead.jpg?size=720x845&amp;nocrop=1\" width=\"720\" style=\"aspect-ratio: 1.503\" loading=\"lazy\" \/>\n                    <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"text-block sl-post-text sl-paragraph sl-element sl-significant-element\" id=\"element-191674\">\n<p>The gymnastics are delightful: it lets GM keep a massive safety net of &#8220;just-in-case&#8221; inventory without having to list billions of dollars&#8217; worth of static assets on its own balance sheet.  <\/p>\n<p><\/p>\n<p>But don&#8217;t get it twisted, GM is paying dearly for the peace of mind. On top of a 0.25 percent annual fee for unused credit capacity, GM will pay Procura an interest rate set at the Secured Overnight Financing Rate plus 1.55 percent.<\/p>\n<p><\/p>\n<p>Why spend millions in interest fees just to buy your own car parts later? Because the last five years have brutally exposed just how fragile globalized supply lines really are.<\/p>\n<p><\/p>\n<p>For fifty years, automakers operated on the gospel of Toyota\u2019s lean manufacturing model: keep inventory practically non-existent and rely on continuous truckloads of parts arriving hours before installation<\/p>\n<\/div>\n<div class=\"media-component sl-media js-media-component js-pin-data sl-element sl-significant-element\" id=\"element-191686\" data-pin-params=\"{&quot;url_to_share&quot;:null,&quot;utm_medium&quot;:null,&quot;utm_campaign&quot;:null,&quot;utm_media&quot;:9859381,&quot;utm_syndication_post&quot;:null,&quot;path&quot;:&quot;2026\/08\/13\/15051.jpg&quot;}\">\n<div class=\"rs-photo-wrap js-media-wrapper\">\n<div class=\"media-wrap js-media-wrap js-pin-item relative sl-photo-wrap\" style=\"max-width:min(100%, 720px);aspect-ratio: 1.501\">\n<div class=\"socials flex js-social-btn\">\n                    <a class=\"button float-button share-button sb-button sb-facebook js-fb-share\" data-ht-track=\"Share Facebook Overlay\" aria-label=\"Share on Facebook\"><br \/>\n                        <span class=\"si-facebook\"><\/span><br \/>\n                    <\/a><br \/>\n    <a class=\"button float-button share-button sb-button sb-pinterest js-pin-button js-no-pintack hidden sl-pinterest-button\" data-allowed-for-syndication=\"0\" data-ht-track=\"Share Pinterest Overlay\" aria-label=\"Pin this photo\"><br \/>\n        <span class=\"si-pinterest\"><\/span><br \/>\n    <\/a><\/p><\/div>\n<p>                    <img decoding=\"async\" alt=\"gm admits just in time delivery is dead\" class=\"sl-post-image sl-syndication-image media-item-track\" src=\"https:\/\/cdn-fastly.thetruthaboutcars.com\/media\/2026\/08\/13\/15051\/gm-admits-just-in-time-delivery-is-dead.jpg?size=720x845&amp;nocrop=1\" width=\"720\" style=\"aspect-ratio: 1.501\" loading=\"lazy\" \/>\n                    <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"text-block sl-post-text sl-paragraph sl-element sl-significant-element\" id=\"element-191677\">\n<p>It worked brilliantly to maximize short-term cash flow\u2014until the 2020 semiconductor drought left tens of thousands of feature-stripped trucks sitting unfinished in giant parking lots. <\/p>\n<p><\/p>\n<p>GM hasn&#8217;t publicly specified which exact components will make up its $4.5 billion rainy-day stash, but you can bet semiconductors, rare-earth motor materials, and high-risk electronic modules sit near the top of the shopping list.<\/p>\n<p><\/p>\n<p><i>Become a\u00a0TTAC insider. Get the latest\u00a0news, features, TTAC takes, and everything else that gets to the truth about cars first by<\/i><i><u> <a href=\"https:\/\/email.thetruthaboutcars.com\/newsletter-signup\/\" rel=\"nofollow noopener\" target=\"_blank\">subscribing to our\u00a0newsletter<\/a><\/u><\/i><i>.<\/i><\/p>\n<\/div>\n<p class=\"inmi-source\">Source: <a href=\"https:\/\/www.thetruthaboutcars.com\/cars\/news-blog\/gm-admits-just-in-time-delivery-is-dead-45136084?utm_medium=auto&amp;utm_source=rss&amp;utm_campaign=all_full\" target=\"_blank\" rel=\"noopener nofollow\">Autos \u2013 The Truth About Cars<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is equal parts awe-inspiring and terrifying to watch tens of thousands of microscopic plastic clips, wiring harnesses, fasteners, and stamped metal brackets dance in precision sync to spit out a functional 5,000-pound SUV every 60 seconds.<\/p>\n","protected":false},"author":1,"featured_media":15253945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[219],"tags":[],"class_list":["post-15253943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-autos"],"featured_image_urls":{"full":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"thumbnail":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-300x352.webp",300,352,true],"medium":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-620x728.webp",620,728,true],"medium_large":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"large":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"1536x1536":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"2048x2048":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"post-thumbnail":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-720x665.webp",720,665,true],"ignition_item":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-670x446.webp",670,446,true],"ignition_item_lg":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead.webp",720,845,false],"ignition_article_media":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-510x510.webp",510,510,true],"ignition_minicart_item":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-160x160.webp",160,160,true],"profile_24":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-24x24.webp",24,24,true],"profile_48":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-48x48.webp",48,48,true],"profile_96":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-96x96.webp",96,96,true],"profile_150":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-150x150.webp",150,150,true],"profile_300":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/08\/15253943-gm-admits-just-in-time-delivery-is-dead-300x300.webp",300,300,true]},"author_info":{"display_name":"news.iNthacity","author_link":"https:\/\/www.inthacity.com\/news\/author\/atombo\/"},"category_info":"<a 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