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General Motors sets up $4.5 billion parts financing facility with Procura Auto
The program is funded by a JPMorgan Chase and Santander-led bank syndicate that can prepay suppliers for GM, aiming to keep parts available during future supply shocks.
General Motors said it has established a purchasing facility worth up to $4.5 billion with Procura Auto Parts to help keep critical components flowing during future supply chain disruptions, according to Yahoo Finance. The facility is designed to provide a purchasing and supply backstop when shocks hit. Under the arrangement, Procura receives funding from a bank syndicate led by JPMorgan Chase and Santander to prepay suppliers on GM’s behalf. That structure is intended to let GM avoid paying for stored parts until they are needed, while still guaranteeing access to the parts. GM said it expects additional disruptions and that the program is meant to prepare the company for a range of scenarios, including cyberattacks and natural disasters. The filing does not specify which parts are targeted. GM also noted that the facility comes with costs, including interest, a premium on parts GM uses, and an annual fee on any unused portion. Separately, GM expects gross tariff expenses of $2.5 billion to $3.5 billion this year, a figure that could exceed 20% of operating profit, per Reuters reporting cited by Yahoo Finance.