GM to speed up payments to parts supply companies

DETROIT (AP) — General Motors Co. is telling parts supply companies that it will make more frequent payments in an effort to ease their cash-flow problems and improve relations.

GM's dealings with suppliers have been strained over the years. Industry analysts say poor relations have prompted suppliers to offer new technology to foreign-based automakers before GM, putting GM behind.

Spokesman Dan Flores says GM now pays suppliers once per month and an average of 47 days after goods are delivered. He says GM will keep the 47-day average but starting with Nov. 1 deliveries, but payments will be made every Tuesday.

He says the speedier payments will help parts companies reduce short-term borrowing. Many suppliers ran into cash problems when credit dried up earlier this year.