General Motors Global Headquarters in Detroit, January 12, 2026.
Jeff Kowalski | Bloomberg | Getty Images
Detroit — general motors The company reached its own multibillion-dollar parts deal aimed at conserving cash and preventing supply chain disruptions like the ones that hit the global auto industry over the past decade.
GM said in a public filing Tuesday that the up to $4.5 billion purchase agreement includes a company called Procura Auto Parts, which specializes in sourcing rare and critical parts. The deal will be financed through a syndicate of banks led by JPMorgan Chase & Co. and Santander Bank and will advance payments to some suppliers on GM’s behalf.
In return, GM will issue an Informal Undertaking (IPU) to repay the company by July 31, 2029, after using the parts in production. The deal allows GM to take inventory costs off its books while increasing its ability to secure future parts.
In addition to interest, GM will pay an agreed-upon premium on the portion used, as well as customary annual fees on the unused portion of the year, according to the filing. For accounting purposes, the advance payments will be shown as assets, each purchase will be recorded as an unsecured debt, and the cash flows will be shown as if GM had paid the suppliers directly, the filing said.
These payments are excluded from adjusted auto free cash flow until GM actually purchases the inventory. The company typically capitalizes within 90 days of purchase.
GM did not say which parts the company might be targeting. Components of concern to the automotive industry include semiconductor chips, including dynamic random access memory, rare earths, and wiring harnesses.
The partnership follows years of global auto supply chain issues and comes after GM and other automakers re-evaluated their sourcing and components in the wake of U.S. tariffs and a push to divest from Chinese companies.
GM closed the deal with Procura and the bank on Friday, according to filings.
