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GM's suppliers 'losing faith'

Automotive industry suppliers are losing faith in the world's biggest carmaker, according to a new report. A satisfaction survey published by claims that suppliers' trust in General Motors has fallen sharply over the last two years.

Suppliers say the company has become less attractive to work with and less respectful of suppliers capabilities. More than 50 suppliers responded to the survey, which asked questions about doing business with GM in north America and Europe. The full results of the survey will be unveiled in January.

One vendor says: “Pressure for cost reduction within GM has broken down many processes and created a total breakdown in supplier partnerships in trust.” GM has also increased quality demands, according to suppliers. And demand for product liability guarantee has gone up.

The report warns the opportunity to make a decent return on business with GM has decreased significantly. It says: “The failure of the Vectra and Signum programmes in Europe to attain predicted sales volumes has led suppliers to question GM's ability to accurately forecast volumes.” One respondent adds: “Due to these low volumes, almost all our suppliers will increase their price levels.”

A GM spokesman says: “It is difficult to comment on the report as the full findings are not published until next year.”

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