When you’re fixing a car in your garage, you might rely on the parts stash up in the loft or tucked in the back shed. For the most part, automakers haven’t done this in ages. Instead, parts arrive with exceedingly short lead times, keeping orders and factory footprint under control, at least in theory. In practice, things have been volatile enough over the past few years that some automakers are reconsidering. General Motors is moving ahead with securing $4.5 billion in new car parts, and it speaks to a truth that might change the way cars are built for the foreseeable future.
Meanwhile, Jaguar’s unveiled the interior for its forthcoming electric four-door, we finally know how much the compact Kia EV3 will cost in America, and Porsche throws a connectivity bone to owners of 2009-to-2016-ish sports cars. All this on today’s issue of The Morning Dump.
Over The Hedge
If you’ve never toured a car assembly plant, I can’t recommend it highly enough. We all have an inkling of just how complex modern cars are, but it truly is mesmerizing to watch tens of thousands of parts, big and small, come together to create a fully-functional vehicle. Of course, take one of said parts away, and the entire process just stops. That’s why General Motors is about to use an intermediary to secure a $4.5 billion stash of car parts. As Bloomberg reports:
The automaker reached a deal with Procura Auto Parts LLC, which will buy parts inventory from key suppliers and front the cash, GM said in a securities filing on Tuesday. The automaker will pay Procura interest and fees upfront, and pay for the parts when it needs them. The suppliers will store the inventory.
While a $4.5 billion parts hoard might sound excessive, there’s a good reason for it: GM seems to reckon that supply chains just aren’t stable enough for Just-In-Time delivery anymore. In case that’s a new phrase to you, one of the big production innovations of the past half-century was continuous truckloads of just enough parts to keep the line going, resulting in lower inventory and substantially faster turn-rate of supplies. It works wonderfully when everything’s flowing smoothly, but the past five-ish years have shown that anything can happen.
Remember the chip shortage of 2020 and how that stripped a whole bunch of features out of new cars as production rebounded quicker than forecast? Well, similar shocks to that have occurred since. For instance, Volkswagen Group ran into issues four years ago when supply of wiring harnesses from Ukraine stopped being a guarantee. The Russian invasion led to assembly plants across Germany grinding to a halt, another unforeseen production stoppage. [Ed Note: Parts shortages meant very few BMW i3s were equipped with Harman Kardon audio systems after 2019. -DT]. On a very different note, the parent company behind some major automotive brands including Autolite, Fram and Trico filed for bankruptcy in 2025, leaving major automakers like Ford and GM in the lurch. The company’s since moved towards liquidation.
While GM hasn’t officially stated exactly what car parts are part of this new plan, fronting the interest and fees for guaranteed access to parts is the exact opposite of a vote of confidence for just-in-time delivery. Don’t be surprised if we see more deals like this in the future, as general volatility continues to disrupt trade.
That’s A Jaguar?
It’s been a long, slow reveal for Jaguar’s relaunch. The actual debut of the Type 01 electric sedan is still months away, but that certainly hasn’t stopped the British marque from peeling things back layer-by-later. The latest element to be shown is the interior of the new model, and it’s nothing like your granddad’s XJ6.
On first glance, the dashboard of the Type 01 features a large digital cluster, a small portrait-style infotainment screen, and that’s it. No knobs on the console, no buttons on the center stack. While the flat passenger dash top looks smart, I do have some usability concerns around that Ken Doll-smooth HMI. In the photo, it even looks like volume’s in the screen or potentially on touch-sensitive steering wheel controls. Oh dear.
Beyond that, there are a few other things to note inside the Type 01. The rear-view mirror isn’t a mirror at all, but instead a digital camera-and-monitor setup with a display at the base of the windscreen. No, Jaguar didn’t photoshop out the rearview mirror, it’s really just like that. Oh, and this new Jag really is a four-seater, with that central spine running all the way to the back of the cabin. It’s all starkly minimalist, and I’d be curious to see how the interior looks in other colorways. We’re a long way from slabs of walnut now, aren’t we?
A Cheap And Cheerful Korean EV
When Kia announced that the EV3 was coming to America, the main question around this entry-level electric crossover was how much it would cost. Now we know, and it seems rather competitive. The base EV3 Light starts at $31,385 including freight, although it’s the only U.S.-spec model to feature the small 58.3 kWh battery pack. As a result, range stands at 221 miles, not exactly giving the Nissan Leaf and Chevrolet Bolt a drubbing. However, spend $36,485 and you’ll get into the Wind FWD, the cheapest long-range model. With an 81.4 kWh battery pack under the floor, this EV3 trim is rated to go 321 miles on a charge. That’s more like it, and with pricing roughly in-line with a mid-range Nissan Leaf SV, it should prove fairly competitive.
Beyond that, there’s a Land trim for $39,985 which adds features like a sunroof, a 360-degree camera system, and ventilated front seats. One step up from there sits the sporty-looking all-wheel-drive-only $44,985 GT-Line trim, and a 288-horsepower GT model rings up at $47,385. Should you want 261-horsepower dual-motor all-wheel-drive with a more affordable price tag, add another $3,700 on top of the Wind FWD trim, $3,200 on top of the Land FWD trim.
That’s a lot of money at the top end, but if you stay reasonably cheap and cheerful, the EV3 looks promising. Each variant comes with wireless Apple CarPlay and Android Auto, all trims save for the shorter-range base model come with heated seats, but only all-wheel-drive variants come with heat pumps. I guess we’ll find out what that means for real-world winter range.
Older Models, New Tricks
Speaking of Apple CarPlay, if you own a Porsche 911, Boxster or Cayman from the late-2000s to the mid-2010s, you might want to lean forward for this one. Porsche has officially announced versions of its PCCM Plus classic infotainment systems specifically for the 987.2 Boxster/Cayman and 997.2 911, along with the 981 Boxster/Cayman and 991.1 911. These units look the part with all the right styles of buttons and knobs, but feature wireless Apple CarPlay and Android Auto, along with the promise of more responsive, more modern hardware and full integration. Steering wheel controls, instrument cluster display, parking sensors, the works. On the unit for the 991.1 and 981 models, you can even customize the system to show your exact model and color.
The main downside here is that the units aren’t cheap. While the unit for the 987.2 and 997.2 is going on sale in the next few months, the unit for the 981 and 991.1 carries an official list price of $3,519.87. Granted, dealers are already discounting it by as much as 20 percent, so there are relative deals to be had. Still, it’s cheaper than upgrading to a newer model, and once the 987.2 and 997.2 version launches, there will be factory-authorized Apple CarPlay options for every Porsche sports car save for the 356, Carrera GT, and 918 Spyder. Neat.
What I’m Listening To While Writing TMD
It’s kinda messed up how “Hang Me Up To Dry” by the Cold War Kids is technically 20 years old, right? All that time and yet it still feels damn fresh.
The Big Question
Are you increasing personal stock of any car components or consumables in response to general volatility? Not to the scale of GM, obviously, but it’s probably not a bad idea to stock up on that GTL synthetic oil you like.
Top graphic image: Chevrolet
I know that just-in-time AKA “Kanban” delivery of components from suppliers and subcontractors has been all the rage for decades, but as a bit of a hoarder myself, it always seems risky to me. Not that extra warehouse space and the logistics/personnel to manage it is exactly cheap, nor is the cash tied up in that additional parts inventory, but potentially interrupting assembly/delivery seems so much worse and more costly.
The interior of that Jag strikes me as fitting for the exterior, in that I think it’s ugly. But I’m not in the market for a six-figure EV, so Jaguar (Tata, actually) shouldn’t lose any sleep about my opinion.
Kia’s EV3 is much more up my alley, and I’ve already watched a bunch of test drive/review videos about it, and they’re all generally positive. Being me, I wish options like an upgraded stereo, 360 degree camera system, etc… were offered individually, and not tied to certain trims, but almost no manufacturer does that anymore. 🙁 I’d also like to see it be a bit cheaper across all the trim lines: a couple grand less at the lower end, and a few-to-four grand less at the higher end. Not everyone needs all that stuff, nor does everyone want to hand over $50K for a loaded small EV out-the-door.
Either that, or bring the Kia EV2 over here. Offer it in fewer trims if necessary, but please keep it cheap. There’s got to be some competition at the bottom-end ($25K IMO) of the EV market… why not let Americans have a small/basic but cute/approachable EV like the EV2, which emphasizes transportation and value, like an EV equivalent of the Hyundai Venue?
Ta-ta, Tata.
Before auto manufacturing was a several country (and tarriff/tax) affair for every component, Kanban worked extremely well. Parts would come from a factory a few miles away, which you either own outright or have a significant stake in. As more things shifted overseas and towards third party contracting, that complexity is what caused problems.
TBQ: I stocked up at least a year and a half (or 3 years if I REALLY feel like pushing my intervals) worth of Pennzoil 5W-20 Ultra Synthetic 5-gallon jugs when it was first rumored that there’d be oil shortages. Considering it’s now becoming an issue to get Pennzoil 0W-20 and Shell Diesel 5W-40 from an OE and yeah, I feel like I made the smart choice. I’ll probably do that with filters at some point too.
I guess I get it if some proletariat consumer needs to have logos and badges all over everything to somehow create self esteem or an identity*. But do people with big bucks really want to constantly be seeing a Jaguar logo every time they sit in their car? I mean, they must know what they got, right?
*Andy doesn’t do brand logo wear or body graffiti.
TBQ: Not really, especially considering I don’t have the space to do so. I do however have the best lifesaving spare part for DIY wrenching: the humble automotive plastic clip assortment.
Seems like a missed opportunity to name the GT-Line trim “Fire”
That’s might be more Nissan and Tesla territory at this point. Relating Fire with EVs not great for the US might buy an EV demo. Its sort of risky they did land, wind. I guess that’s why it’s not earth, wind. The Korean version is called 어스 (eoseu) translates to Earth. They also do air. BYD could get away with it.
EV3 is still about $5k too much. Ionic 5 is $35k now. Bolt is $29k but can be had for $27k in most markets sometimes less. Leaf is $31k can be had for $29k but not selling great. Its sort of replacing the soul. That started $22k at the end for the base. I guess when kia does the thing it will be $29k still needs to be mid $20s before most of the soul buyers are interested. I don’t imagine they have a large order bank.
I’ve increased my stock of certain things. Oil, fluids, filters, wipers, pcv valves. I have a stock of some other parts but haven’t really increased those. I make sure I have the ingredients to make wiper fluid. I’ve long stocked things at my farm it’s just cheaper and easier. Any time I place a rock auto order I stock up on basics. I realized I needed to increase when I was buying some oil and saw the filter shelves cleared out. I’ve always kept a set of filters in my truck now I keep 2 sets. I keep a set of led bulbs and assortment of extra fuses in every car.
Best looking Jaguar in decades. Full Stop.
I have some oil filters and oil for my car that needs oil changes. My toy (that keeps finding novel ways to break) that needs an oil change, whatever. So far eBay has been a great kinda on demand virtual warehouse. And the manufacturer hasn’t changed many maintenance things in 25 years so all that stuff is easy to obtain.
Jaguar interior…..Lol
It reminds me of the blade runner future-beige aesthetic. And that’s not exactly a compliment. Jags should be comfy/a little imperialistic, not brutalist and sad.
Kind of like Jeremy Clarkson then?
Insightfully well put. For me, not necessarily regarding the aesthetic design (which is debatable), but with respect to the controls and their lack (which I feel is not). One small touchscreen plus two touch surfaces on the steering wheel? Seriously?
It comes off as more concept car and less one that anyone would want to spend any time in.
It looks like future solitary confinement. “I sentence you to the void. Bailiff, escort this prisoner to the Jaguar.”
….how are manufacturers STILL pushing interiors like this in 2026? Literally no one likes them. The companies that went hard on this minimalist tech forward crapola are currently having to reverse course and their sales are suffering greatly as a result. Look at VW and Audi. Hell…Honda tried this shit years before they did and completely abandoned it a long time ago.
I get that sometimes stuff is too far in the development pipeline to change, and that that can lead to slapdash half-measures to fix things…like VW having to go back to their old steering wheel. But like, surely this was far enough along that this hellish interior was a choice made despite them knowing it wouldn’t sit well with buyers.
Is this yet another attempt by the European luxury market to appeal to the Chinese market despite the fact that they’re constantly eating shit over and over again there? I guess in a roundabout way it is since they have Chinese ownership at this stage. But European marquees making their entire lineup as Chinese as possible to try to tap into that market has been a colossal failure (the old lighting site had a decent article about this earlier this week) because the Chinese EVs are simply better and cheaper.
What’s the point at this stage? Luxury is not screens and haptic shit. We’re at that point that the CEO of Audi, one of the companies that jumped on this stupid trend the hardest, is making public statements about it. We’ve reached the point when the highest trims of regular ass cars are significantly more luxurious than entry and even mid level luxury cars.
Like a high spec Pilot or CRV has a much nicer interior than the current X3 or Q5. The current Hyundai Santa Fe’s interior in the higher trims is comparable to my dad’s X5’s interior, and the G05 is widely considered one of the last good modern BMWs. There’s just no fuckin way that’s sustainable…
I’m with you but I’m not sure that this is Jaguar even being remotely rational trying to appeal to the Chinese. They don’t really have leg to stand on there. Plus the Chery jv they have is handling China at this point. This seems more like pure lazy incompetence to me. Someone sees luxury EVs thinks its supposed to look like this so they do it. If the way they handled marketing is any indication it’s a garbage fire of bad ideas and copy anything while saying copy nothing, no back bone or original ideas.
Jaguar needs to focus on India. They are owned by an indian company so they already have the in. There is already a market preference for Jaguar and land rover and that market is primed to go like the Chinese were 20 to 25 years ago. Chinese have their brands, foreign brands are done there for the foreseeable future. The sooner the global oems realize that the better. Just get ideas and tech from the jvs come back their own design language.
I sat in the driver seat of every single 2026 Hyundai model while my Ioniq 6 was in for service. The nicest-seeming one? The bargain bin Venue.
Every “nicer” model has these miserably cave-like black-on-black interiors with tacky, cheap-feeling capacitive controls for everything. Meanwhile the Venue had this delightful denim-colored interior with nice-feeling tactile controls.
Like, how the fuck did funeral colorways and cheap-ass plastic touch panels become indicators of luxury?
Alphanumeric names with actual word trim levels is a new one for me; the other way around seems like it makes more sense, but what do I know.
If I buy an AWD EV3 in white, I’ll shod it with some Bridgestone Blizzaks and I shall name it: “Stormtrooper”
You have my attention. (I have a Crosstrek in white with Blizzaks and black Sparco Terra wheels.)
I refer to any vehicle in plain white with only black trim, accents, wheels etc. (no chrome obviously) as being ‘storm trooper’. And I have to admit, it always looks pretty good. I love me some actual colors on vehicles, but if it has to be some version of white/gray/black, make it storm trooper every time.
I think I started paying attention to this when Nissan came out with the Rogue One Star Wars edition, which as a lover of dad jokes I wholeheartedly salute. We need more special editions like that.
One one hand there’s SLATE where every option is a’la carte… and this Kia “entry level” EV that’s anything but if you want heated and ventilated seats and/or AWD you pay though the nose for the higher trim AND you get stuck with crappy low-profile tires.
Damn I hate how the trims are made up. Hard pass on a new EV3. I’d just look for a gently used, low mileage, maybe a CPO EV6 or Ioniq 5 with the stuff I want (and would probably still get stuck with low profile wheel benders).
I wish a manufacturer (looking at FORD Fathom) would come up with a simple option list instead of the bundled trims.
see the earlier JIT topic for why a-la-carte options are more challenging than bundled packages. Challenge can be overcome with cost, which is passed to the customer, and the determining the relative value and target market’s price sensitivity of that customization seems to be more art than science right now.
I have a couple of oil changes worth of oil on hand, partly for supply chain issues, party for convenience, as I now have two cars that use the exact same oil, which hasn’t really happened before
I just did a stock-up run on motor oil yesterday at the local Costco, with a half-dozen jugs of oil coming home with me. The usual “cheap” sellers of motor oils (Walmart) have had 20-25% price increases the last month or two for not only name-brand product, but their in-house oil. For now, anyway, prices haven’t increased at the ‘Co.
Nearly all the cars here use the same spec of oil, and between the drivers, oil changes happen every 1-2 months. That should be enough oil to get into early next year.
When the War in Iran kicked off and the Shell oil production sites were struck, I went and grabbed a few gallons of Rotella T6 oil for my Miata. It happened to be on sale at Rural King, so I figured why not.
Then a rod proceeded to leave the chat, so I have no current use for the oil.
Your poor miata! I’m so sorry.
It has lived a very hard and neglected life. I bought it in 2014 with 80k miles after it had been parked for 2 years, crashed underneath the original owners other car when his kids took his keys away. I daily drove it all through college, and neglected a ton of maintenance because I was broke. After graduating and getting a big boy job it became essentially an HPDE/Autocross/twisty back roads only car around 115k miles. Motor finally gave up the ghost just a few miles shy of 150k. It had been to 8800rpm 4 times (money shift from redline 3rd to 2nd), overheated 3 times, and ran almost out of oil once. It has been consuming 1qt of oil every 20min track session since 2023. I’m just mad at myself I didn’t buy a BP4W replacement motor to swap in back when they were cheap. Now a good one is ~$2500. After I sell my current daily driver when my new car comes in the proceeds are going to fix the Miata and do a ton of While you’re in there things I have neglected over the years.
Shell Rotella T6 – It’ll Quiet down your lifters, but it wont un-spin a bearing, for that you need Valvoline restore and Protect! (/s, sorry for you loss)
It’s got all the vitamins and dinosaurs older engines need, after all.
TBQ: No. I just go to the parts store. Or my guy takes care of it when I get maintenance.
Disclaimer: when it was my actual job (in my teens and twenties), I liked working on cars for pay and my own for fun. Nowadays? My hands are too big (and the places they need to go are now too small) for most DIY jobs.
Classic Mini parts are still pretty thick on the ground, so I’m not too concerned yet. And my Excursion has many an F250/350 in the junkyard to pillage, should new parts become NLA.
You’d LIKE to know where the treasure is, WOULDN’T YOU??
* eyes Thomas suspiciously *
Separate take on GM’s inventory plan is not just how much $, but where in the world.
With the ongoing escalating threats of tariff tax on all things going in/out of the US – is this also a statement about pre-positioning inventory?
As GM becomes less-and-less international, and more of a USA brand, I can’t help but thing it is also about protecting for the next two years worth of executive orders.
So glad we elected a business-friendly administration. /s
GM has somewhat quietly been making moves like this (in addition to getting their supply chain completely out of many countries) and I think it’s right move. In fact, it’s an example of doing something long term that doesn’t impact next quarter. For that, I applaud them.
The downside probably isn’t huge in the normal case, but in the event that a COVID-level disruption happens again, they may be the only company that can sell cars at volume during that time which will be a huge advantage.
I really agree, true wisdom at play given the almost guaranteed uncertainty in geopolitics and all the other calamities lining up for their moment. Just-in-time was quite idealistic all along.
It’s kind of amazing companies got away with it for so long. And so many went right back to it post-covid having learned nothing
And they could pound the shit out of suppliers in the name of synergies. Buh bye JIT? And how clever to get some soon to be IPO to shoulder the load. Clever Mary, clever
GM is suffering in markets outside the US with with the forced announcement to defend Chinese market sales slides that they’re not retreating (in the face of pitiful deliveries of ~500k last year), and to note they’re maintaining production JV with SAIC was not just interesting, but telling in that they’re reliant on the US pickup truck amrgins.
I had trouble parsing this comment tbh, but yes they’re going to continue to sell cars in places other than the US, they’re just going to be more careful about supply chains is my understanding
Besides oil and filters normally don’t stock pile on any parts as accidents can happen or never know if might sell/trade a car in. Though I have a replacement driver’s side fender for my bird incase the dents would cost to much to pull and just having one painted and put back on would be cheaper though at that point I will just get the whole car repainted.
Any word on when the RAM-pocalypse will hit cars? All that infotainment and “self-driving” need plenty of onboard compute unless someone is going to roll out cloud-based compute for these features…sweet Jesus you know someone is going to try it. Probably BMW since the Germans love subscription revenue.
It’s either that or the infotainment units just stay crappy even though everything else in the car continually improves/updates/changes just for the hell of it
When you said “RAM-pocalypse”, I assumed that RAM drivers were involved in a new scandal other than DUI high scores.
Is “RAM-pocalypse” not just the aftermath of a collection of RAM drivers’ hit-and-run?
I believe that’s just called “Tuesday”
Perhaps that is what they should call their Honda Days equivalent lol
It’s already hit, a couple years ago. It’s mostly contained to vehicles with self driving tech, since sensor data has to be mostly processed locally.
Infotainment in general doesn’t require more power than a mid tier cell phone, so it’s pretty cheap.
If I had to do it again I would have ripped all of the Bose shit out of my 996 and put a regular Double DIN in it. The PCCM+ was cool that it worked with the car’s system but that only manifested with it setting the car’s clock automatically. Other than that it wasn’t that great (they didn’t even really make it match the typeface that the car had, and instead it looked like a unite from a 981/991 car) and it already “only” cost 40% as much as this one.
I’m annoyed that Porsche STILL hasn’t rolled out the upgraded stereos for the Panamera. It’s not like it should be exactly difficult. Grr.
I’ve had my 981 Boxster for seven years and have been trying (on and off) to find someone to upgrade the head unit to the version of PCM that supports CarPlay. It seems fairly common in the UK but not here in the US.
I don’t know exactly when I will be at the dealer getting this but I will be at some point in the (relatively) near future. I hadn’t had any hope of wireless CarPlay but that is a nice addition too.
So, it will likely happen for your Panamera. It sucks they slow roll this stuff but who else is supporting upgrades for infotainment out there?
At the rate that Porsche seems to roll these out, I’ll have sold the Panamera by the time it’s available.
https://www.suncoastparts.com/product/skugta9x1.html
assuming you’ve seen that?
I have seen this but I do not have the time or ability to dismantle my entire dashboard and risk damaging so many electric components. In my area I just haven’t been able to find a trusted installer for these.
I did waste an incredible amount of time watching YouTube videos trying to talk myself into trying it but I ultimately chickened out.
Roger that, I’m in the same boat with my 991. Very excited to see how the new PCCM kits look.
Why is GM wasting money paying another company interest for buying and storing parts? Seems like a short sighted goal to preserve cash and make the stock look good.
Your second sentence answers the question of the first.
There’s a general rule of thumb on inventory levels that your inventory costs you somewhere between 20-30% annually in various costs. This accounts for storage space for square footage, opportunity cost on that money, personnel required to manage it, potential property tax for larger warehouse, etc. A company whose business model it is to hold that inventory for a period of time at a set interest rate with guaranteed income from GM based on sales contracts can make money, while GM can remove a TON of logistical headache for less cost than had they just stashed parts themselves.
Also, think about the volume of $4.5 Billion in parts. I can just about guarantee that GM doesn’t have the floor space across locations to just store it, much less manage it all when they are likely set up for Just In Time deliveries with light on-site inventory. Companies of any size take time to radically overhaul their operations side to this extent. This approach gives GM maximally available parts with a reduced recurring cost AND has the benefit of not requiring expensive and more permanent infrastructure build out that is very hard to unwind or recoup costs on should supply chains become more reliable.
I think GM shouldn’t have any trouble finding warehouse space. As soon as they say “It’s not a datacenter, it’s just parts!” they’ll be welcomed in with open arms.
You have no idea how much volume 4.5B in parts takes up, and GM like all major OEMs have a very robust just-in-time system that means on-site inventory is fairly minimal. The American and German OEMs also source a LOT of parts from third party suppliers, meaning there is absolutely no room across their entire production chain to house those parts. Even less so when you consider the space only at final assembly locations. Buying real estate or leasing it is very expensive and has long term fixed costs and requires reworking your entire internal supply chain to account for it. Also don’t forget this is 4.5B in parts at COST, not retail, which means it’s likely well north of 10-20B in value of parts at a retail cost. Now think of how much space that is. It absolutely does not appear overnight.
In this case, all they have to do is eat a small one time cost for some parts and everything arrives exactly how it used to, meaning their assembly plants see almost zero change. I work in a manufacturing environment with at most a low 7-figure inventory value, and we have had multiple issues with parts shortages and zero room to expand inventory. If we had the ability to even 2x our supply of parts with a third party and pay a small interest charge on the value, we would have done it yesterday. Now take the struggles I mentioned, and multiply that scale by four and a half thousand. This is why I am saying what GM is doing here is an absolute no-brainer.
Spot on analysis. It’s an off site buffer to handle logistics interruptions. Interruptions that have cost significantly more than this ongoing cost. People don’t realize how much money you lose when you have to shut down a plant that spits out a new 5 figure vehicle every 60 seconds.
It’s the same reason all of the hyperscalers are “leasing” data centers from shell companies. It keeps the liabilities off their books and it looks like they’re just making perfectly normal payments to a supplier.
Some companies now have more debt hidden this way than the normal debt they have to report on financial statements. As long as it continues to be legal, expect more and more companies to follow suit.
See my comment directly above in relation to this. Not saying anything about the data center hyperscale space, that industry is shady and messy. In this case there are myriad reasonable and prudent business reasons why this move from GM is legitimately the most cost effective and logical. This is not really a way to hide debt due to it being under a sort of sales contract, but rather a way to better utilize cash resources, minimize infrastructure changes, maximize flexibility and create a more resilient supply chain. GM and most mega-companies have their faults, and GM has had some really dubious calls over the years like the ignition switch fiasco, but in this case this is just good clean smart business.
Same reason they pay suppliers to build parts instead of being vertically integrated and making everything themselves. This shifts capital costs and risks to a 3rd party and gives the automaker flexibility.
It also allows them to pit those 3rd parties against each other and squeeze most of the profit out.
Suppliers balance this risk by working with multiple OEMs.