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Gm Ranked Worst Automaker By U.s. Suppliers: Survey

By Expert Author: jareldaren

DETROIT (Reuters) - Basic Motors Co , currently locked in a public relations crisis simply because of a deadly ignition defect that has triggered the recall of 2.6 million autos, has a new perception challenge on its hands.

The U.S. company is now viewed as the worst massive automaker to deal with, according to a new survey of top rated suppliers to the car or truck business in the United States.

The annual survey, conducted by the automotive consultant group Preparing Perspectives Inc, asks the industry's biggest suppliers to price their relationships with the six automakers that account for extra than 85 percent of all light vehicle sales in the United States.

Those so-named "Tier 1" suppliers say GM is now their least favourite significant buyer, according to the rankings, much less preferred even than Chrysler, the unit of Fiat Chrysler Automobiles , which since 2008 had regularly earned that dubious distinction.

Suppliers gave GM low marks on all kinds of key measures, which includes its general trustworthiness, its communication capabilities, and its protection of intellectual property.

The suppliers also stated that GM was the automaker least most likely to allow them to raise prices to recoup unexpected material expense increases.

"As a result, GM is now the least preferred consumer of suppliers," PPI says.

Nissan Motor Co Ltd overtook Ford Motor Co for third location in PPI's Supplier Operating Relations Index, pushing Dearborn-primarily based Ford into fourth location. Toyota Motor Co and Honda Motor Co Ltd completed in the No. 1 and No. 2 spots, respectively.

PPI, which has been conducting the survey for 14 years, says supplier perceptions of automakers are crucial simply because they can identify which automobile makers see the suppliers' newest technologies initial, get their ideal pricing and function with their finest engineers.

John Henke, the head of PPI and a study fellow at Center for Supply Chain Management at Rutgers University, said the Japanese sweep of the major 3 places recommended the industry "could be entering an era in supplier relations that doesn't bode effectively for the U.S. Big 3."

The explanation: the Japanese automakers are not just benefiting from a deterioration in relations amongst suppliers and the Large 3 -- they are basically rising in the estimation of their suppliers.

Toyota and Nissan, in unique, saw the percentage of suppliers who characterized their partnership with the two automakers as "excellent or quite good" surge.

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GM, meanwhile, is in an especially unenviable spot, with 55 % of the suppliers surveyed characterizing their relations with the automaker as "poor to pretty poor," up from 48 percent last year.

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