- The Washington Times - Monday, May 30, 2005

DETROIT (AP) — Auto-parts suppliers’ trust in General Motors Corp. is at its lowest level in 15 years, according to a survey by a Michigan consulting firm.

Eighty-five percent of the suppliers questioned who work with GM reported a poor relationship, and just 3 percent said they have a good or very good relationship with GM.

Fifty-three percent of suppliers said they prefer not to work with the world’s largest automaker because the company has little regard for suppliers’ financial stability.

Planning Perspectives Inc. questioned 259 suppliers in March and April about whether automakers help or hinder them, how well they communicate and how much potential they have to make a profit. The employees questioned were generally salespeople who work directly with automakers. Planning Perspectives President John Henke said the company has been studying automaker-supplier relations since 1990. The latest survey is to be released today.

The results weren’t much better for Ford Motor Co. or DaimlerChrysler AG’s Chrysler Group. Seventy-eight percent of suppliers said they had a poor relationship with Ford and 66 percent said they had a poor relationship with Chrysler.

Mr. Henke said relationships have deteriorated to such a degree that some suppliers are afraid to post profits because they worry that the Big Three will think they are making too much money.

“Of all the industries that we have worked in, the North American auto industry is clearly the most adversarial,” Mr. Henke said.


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