So what is GM doing wrong?
I have worked in automotive for 25 years as a supplier to GM, Honda, Ford, Chrysler, Toyota , Supplying diversified product lines with various companies.
automotive restraints, midsized stampings and structual weldments, greenhouse trim, rubber extrusions, and most recently, exterior plastic.
A huge area for improvement.
My opinion, GM does not listen to their supply base and treats them with disrespect, demands for cost reduction with little engineering support to implement new ideas.
Most suppliers will tell you that when dealing with the JOEMs the margins are smaller but you get better support and stability within engineering and purchasing. Launch , quality or delivery issues are handled as a team effort in attempting to resolve the issue and there is seldon the threat of pulling work or pitching one supplier against another.
The JOEMs are not big advocates of market tests, and wont pull a job for a few points in pricing variance.
So, I like the GM product, I buy the GM product, but I don't like the way GM interfaces with the Supply chain. The supply chain is a huge resource when you look at vehicle content outsourced, use them as an ally!