Keep these complaints in mind when GM and the UAW start asking for Billion$$ in tax payer bailouts in the near future...
As someone who has sold to GM and Chrysler, I can certainly understand why. The auto makers like their suppliers to cut the price for the same product every year, sometimes 10-20 percent a year for each year of an agreement. Yet, their finished products cost more every year.
GM has for years now been downright abusive to their suppliers, including key suppliers with whom they have long relationships.
I have been in the past a supplier to GM, and I have friends who are today, and the consensus is that dealing with GM is just not worth the aggravation any more.
They haven't realized that it's not their suppliers' fault they can't make money - it's the miserable products they offer!
You know a company is in trouble when both the customers and suppliers don't think too highly of it...
I spent fifteen years as an automotive supplier rep. GM directives were quite simple:
1: diversify your work force to meet their equality requirements.
2: Undercut your profit margins by a minimum of 5% per year
3: Move your operations off shore to approved economic development areas.
Do all of this and they may let you stay on as a supplier.
In the end, it's a losing proposition to bid on any work for GM.
Japanese transplant operations are the best customers a US supplier can work with now.
Does is seem strange that the only people surveyed were the sales people?
GM is not in the business of making cars, GM is in the business of paying union benefits and pensions. The car "thing" is incidental.
Keep these complaints in mind when GM and the UAW start asking for Billion$$ in tax payer bailouts in the near future...
True.
But CEOs change frequently and a good customer can become a bad one overnight.
Some new CEOs want to maximize current stock values by short term schemes to increase cash flow. They drift from company to company getting millions annually in stock options, bonuses and severance packages while leaving devastated companies in their wake.
If anyone has been abused it is the GM independent dealers who have to sell their product to the public.
After being squeezed out of any profit on the sale of the vehicle the dealers would come up with other profit centers such as after market accessories or service agreements or financing and GM would promptly usurp by making it standard or offering a similar product at a lower price.
They then insist that the dealer maintain a high customer satisfaction percentage even though most of the customers dissatisfaction is with the product.
GM also saturated markets with dealerships on every corner thus splitting up markets to the point that dealers cannot provided the advertising or customer service that is necessary to compete with imports.
There is much more, but you get the picture.
This is funny. The goose that laid the golden eggs is dying and everyone wants to pluck the last feather. Yea, we supplied great parts but the car turned out bad. Most of these supply companies would not exist except for the former big Three. If GM goes under many will cease to exist. GM products are not my preference but I hope they can hold on.
Gee, and I thought Wal Mart was the poster child of "evil" companies in the USA... /sarc
My company supplies equipment to GM. As a service engineer, I can attest to that fact whole heartedly. They always ask for more than stipulated in the perchase order and expect modifications to our equipment, software etc., to facilitate changes in their requirements free of charge.
They also threaten to not do business with you unless you comply with their demands.
The socialistic atmosphere has caused them to cut corners the only place the union will let them...suppliers
Not a good company to deal with.
After seeing how they do business, in their plants, first hand. I won't buy GM again.
Multiplied many times in various other companys. Its kind of like what happened to the public school system except the blood sucking goes on and on and on and on.. i.e. taxes you see.. Gov't bailout is EXPECTED, not lamented..
GM is notorious for NOT paying in any sort of timely fashion its vendors.... I can't blame any of them for not wanting to deal with them... Delivering 2 Million parts doesn't do you a lick of good if you get paid net 360.
Very true, and it is somewhat amazing that some very large companies do not understand that concept nor understand that repeatable screwing over key suppliers ends up costing them in the long run. I recall one being amazed when we informed them that they were on our "Unacceptable Customer" list.