General Motors is Ranked Worst Car Maker by US Suppliers
In addition to the PR disaster stemming from recalled vehicles with faulty ignitions, General Motors has now been ranked the worst large car maker to deal with by suppliers, according to a survey by automotive consultant group Planning Perspectives Inc.
Planning Perspectives surveyed the US car industry's top suppliers, asking them to rank their relationships with the six car manufacturers who hold 85% of the market: GM, Nissan, Ford, Toyota, Honda and Chrysler.
The report ranks the companies on their trustworthiness, communication skills, and protection of intellectual property; GM scored low on all three accounts. Suppliers also said that GM was the least likely to allow them to raise prices to recoup losses.
Over half of the suppliers (55%) surveyed described their relationship with GM as "poor to very poor" – up from 48% last year. GM wins the dubious claim of least popular from Chrysler, which has held it since 2008.
Toyota came top, with Honda second, while Nissan took third place pushing Ford down to fourth. Chrysler was elevated to fifth courtesy of GM's dismal last placing.
John Henke, the head of PPI, said the industry "could be entering an era in supplier relations that doesn't bode well for the US Big Three".
GM will be hoping that 2014 can only get better after it posted its worst quarterly performance in over four years as first-quarter profit had plunged 88% from January to March.
The huge decline in profit came about as 2.6 million of its vehicles had to be recalled over defective ignition switches which allegedly have caused several fatal accidents.
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