- On August 7, 2026, GM entered into a Master IPU Agreement establishing a $4.5 billion inventory financing program with Procura Auto Parts LLC, supported by bank funding from a syndicate including JPMorgan Chase and Banco Santander.
- GM established the deal with Procura and the banks on Friday, according to the filing.
- The program is aimed at securing critical inventory against disruptions such as natural disasters, cyberattacks, and demand spikes.
- GM said in a Tuesday regulatory filing that it has set up a $4.5 billion purchasing facility, under which it will arrange for Procura Auto Parts to purchase certain parts from suppliers.
- The deal allows GM to keep inventory costs off its books, while better securing future parts.
- Automakers have more actively managed supply chains following the COVID-19 pandemic, which showed how vulnerable they were to disruption as a result of supply shortages, especially of computer chips.
- The deal follows years of global automotive supply chain issues and comes after GM and other automakers reevaluated their sourcing of parts following U.S. tariffs and a push to move away from Chinese companies.
General Motors has entered a significant $4.5 billion inventory financing agreement with Procura Auto Parts, supported by JPMorgan Chase and Banco Santander. This initiative is designed to secure critical parts necessary for vehicle production, addressing potential supply chain disruptions from various threats, including natural disasters and cyberattacks.134
Under this twelve-month program, suppliers will receive advances to acquire and hold essential inventory for GM, with payments due after the inventory is consumed, no later than August 6, 2029. The deal allows GM to maintain inventory costs off its balance sheet while ensuring access to vital components.
The automaker's regulatory filing indicates that it has partnered with a third-party inventory management firm to guarantee a steady supply of these critical parts. GM's strategy reflects a broader trend among automakers to enhance supply chain management following the disruptions experienced during the COVID-19 pandemic, particularly regarding computer chip shortages.6
Procura, which has been in the inventory management sector since 2015, will facilitate the purchasing of select parts from suppliers, thereby freeing up GM's working capital. The program is expected to bolster GM's operational resilience and mitigate risks associated with supply chain vulnerabilities.
The deal also includes provisions for GM to pay interest and an annual fee on the unused portion of the financing, with prepayments recorded as assets and the inventory purchases as unsecured debt.
This agreement comes as GM and other automakers reassess their sourcing strategies in light of recent global supply chain challenges and geopolitical factors.
“The program, lasting twelve months, lets suppliers receive advances to hold inventory for GM, with payments due by August 2029. GM will account for it as a product financing arrangement, keeping inventory costs off its books and excluding cash flows from adjusted free cash flow until purchase.”
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