In a Tier 1 supplier survey conducted by research firm Planning Perspectives Inc, respondents were asked to rate their interactions with the biggest automakers in the US. Subjects include communications, trustworthiness, flexibility and handling of intellectual property, among other criteria.
More than half of the suppliers generally outlined their relationship with General Motors as “poor to very poor,” with a notable unwillingness to adjust prices due to unexpected jumps in material costs.
“As a result, GM is now the least preferred customer of suppliers,” PPI said, as quoted by Reuters.
The ranking is particularly significant amid the company’s ongoing recall crisis, which centers around an ignition switch produced by supplier Delphi. Reports suggest overly aggressive cost-cutting strategies played a role, putting pressure on suppliers to shave costs in every way possible. The practices have been blamed on quality deficiencies and production approval for component designs that were known to have fallen short of GM’s original specifications.
GM has vowed to place a top priority on safety, splitting off an “integrity” unit as a separate entity from the core engineering operations. It is unclear if the company is working to improve supplier relations as part of its quest to produce safer vehicles.
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