Automaker seeks to ease strained relations with parts makers while still slashing costs.
By Brett Clanton / The Detroit News
As General Motors Corp. tries to get its North American auto business back on track, the automaker unveiled a new cost-cutting plan to its top U.S. suppliers that will push them to lower prices, improve quality and streamline operations.
The three-year initiative is also aimed at mending GM's strained relations with parts makers. The automaker struck a conciliatory tone during a nearly day-long meeting Thursday with 300 suppliers. But that goodwill will likely be tested next month when GM gives individual parts companies specific cost-cutting targets.
While the new plan stresses more collaboration, rewards top achievers and takes into account shifting market conditions, analysts said it may also give suppliers less flexibility in how they reduce costs and pressure them to open factories in low-cost countries such as China and India to meet tougher targets.
Source:
http://www.detnews.com/2005/autosins...A01-325001.htm