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General Motors Worst Carmaker To Work With Say Suppliers
General Motors has been ranked as the worst automaker to do business with by major suppliers in the United States. GM earned this dreaded distinction in an annual study conducted by Planning Perspectives, Inc (PPI).
Of all the Tier I parts suppliers for the U.S. automotive industry, who took part in the study, 55 percent said they have "poor to very poor" relationship with GM, among the top six car companies in the country.
GM was rated poorly in several key areas ranging from trustworthiness, communication skills, protection of intellectual property and more. Suppliers even felt that GM was the company least likely to allow them to increase prices in case of unexpected increase in production cost.
Performing only a little better than GM is Chrysler (now Fiat Chrysler Automobiles) in fifth position. For the last six years Chrysler was the one that was termed the worst, which only adds to GM's shame.
The last of the ‘Big Three' American automakers, Ford, came in the bottom three at fourth position. The top three positions were acquired by Japanese companies, Nissan (3rd), Honda and Toyota, with Toyota being termed the most preferred customer by suppliers.
While these six companies account for 85 percent of all car sales in the U.S, PPI also included smaller players Volkswagen, Mercedes-Benz and BMW in their study.
When the list is extended with the three German car makers, GM mercifully scores better points than Mercedes-Benz and Volkswagen.
At the same time, GM drops to 7th from 6th because BMW comes in a close second behind Toyota and above Honda.
While GM's recent scandalous affair relating to the ignition switch defect has had major repercussions, American automakers in general have performed poorly, PPI reflected upon.
John Henke, the head of PPI and a research fellow at Center for Supply Chain Management at Rutgers University, said the Japanese sweep of the top three places suggested the industry "could be entering an era in supplier relations that doesn't bode well for the U.S. Big Three," quotes Reuters.
"The reason: the Japanese automakers are not just benefiting from a deterioration in relations between suppliers and the Big Three -- they are actually rising in the estimation of their suppliers"
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