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GM Mends Fences with Suppliers

Nissan takes tumble in new study.

by on May.15, 2017

GM relies on parts from about 20,000 different suppliers to produce vehicles like the Chevy Bolt.

Once the scourge of automotive suppliers, General Motors has been shaking things up and improving relations with the parts manufacturers who are a critical part of the auto industry, according to a new study that ranks carmakers based on how well they work with suppliers.

Toyota and Honda captured the top two spots in the 2017 North American Automotive OEM-Supplier Working Relations Index study, as has been the norm for most of the 16 previous studies. But Nissan fell for the third year in a row while GM, long the industry laggard rose from sixth to third place this year.

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“GM’s turnaround in supplier relations is remarkable,” said John Henke, president of Planning Perspectives, Inc., which conducts the annual study, noting that the Detroit maker has improved in all five areas covered by the index, while Nissan “has dropped in all five.”


GM Employing Less is More Philosophy

Detroit maker cuts vehicle platforms to improve efficiency.

by on Oct.02, 2014

GM CEO Mary Barra believes cutting the number of vehicle platforms used by the maker will cut costs and improve relations with suppliers.

Despite efforts to grow sales in China and expand the Cadillac line, General Motors plans to reduce the number of platforms or vehicle architecture it will support across the globe even as it continues to roll out new vehicles to win over new customers.

The reduction in the number of platforms will give GM a chance to exploit economies of scale and also improve relations with suppliers, GM Chief Executive Officer Mary Barra told analysts during the a meeting at GM’s Milford Proving Ground outside Detroit yesterday.

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At the same time, GM will continue to keep its product pipeline filled with new vehicles, she said. (more…)