Daily Management Review

GM’s Relations With Suppliers Enhanced Last Year Despite Pandemic, Shows A Study


An annual North American survey released on Monday showed that the United States auto making company General Motors Co had strengthened its relations with its suppliers throughout last year even in the wake of a severe impact of the Covid-19 pandemic as well as the semiconductor chip shortage worldwide.
The analysis report was published in consulting firm Plante Moran's annual Working Relations Index in which the top automaker of the US managed to better its score by 20 points to 289 which now places the company closer to the annual leaders in the risk – the Japanese car makers Toyota Motor Corp (with 347 points) and Honda Motor Co (316 points). The list noted both of the Japanese companies also bettered their scores slightly.
The trust and communication that suppliers have with their customers is measured in this annual survey which essentially translates into better pricing and greater willingness among suppliers to invest in and share new technologies with automakers.
"The industry went through a trial by fire this past year, but seeing the positive results for four of the six automakers was a surprise in many ways," Dave Andrea, principal in Plante Moran's automotive practice, said in a statement. "Typically, a crisis is not the time to improve established relations."
The results of the survey show the efforts of the company to further strengthen its ties with suppliers, said GM Vice President of global purchasing Shilpan Amin in a separate statement.
"This provides many important benefits, including stronger business results for both GM and the supply base, along with supplier willingness to invest in new technology," he said.
In contrast, GM’s US rival Ford Motor Co’s rating dropped by 15 points to 249. A similar drop of 28 points to 170 was accorded to another car maker Fiat Chrysler before its merger with France's PSA earlier this year which created the new company called Stellantis. Another Japanese auto major Nissan Motor Co was placed second last in the list - ahead of FCA. Nissan was given a 21-point enhancement to 211.
US based electric car maker Tesla Inc does not participate in the Plante Moran study.
Plante Moran said that the timing of the annual survey was between February and middle of April. The survey included responses to questions from 728 salespeople at 479 suppliers which represented almost half of the annual purchases of the six automakers.