U.S. auto suppliers can benefit from the weak U.S. dollar, especially as they compete with suppliers in Europe, said Bo Andersson, General Motors Corp.'s group vice president of purchasing and global supply.
“With a weaker U.S. dollar, the U.S. supply base is more competitive on a global basis,” he told reporters after a panel discussion Thursday about GM's efforts to improve its relationship with suppliers.
That's a small bright side for a domestic parts-making industry driven into financial distress by rising raw-material prices, production cuts and price-reduction demands from automakers.
Even as the supplier industry suffers, GM has improved its relationship with suppliers with a strategy it launched in 2005 that works with suppliers on a case-by-case basis instead of seeking across-the-board price cuts.
GM climbed out of last place in a survey of automaker relationships with suppliers conducted by Birmingham-based consulting firm Planning Perspectives and released this week. Andersson and executives in charge of GM's interior engineering and interior purchasing were part of a panel that discussed GM's progress and areas where they can improve during Ward's Auto Interiors Show at Cobo Center.
As the automaker made changes, it started by asking suppliers to express their concerns in writing.
GM also started involving its buyers in the seven annual in-person and conference-call meetings it holds with its 300 largest suppliers.
That makes a difference, said Ray Scott, Lear's president of the North American customer group. “The priorities are aligned. It is a single voice driving the results,” said Scott, who was part of Thursday's panel.
Andersson said GM is also giving suppliers answers more quickly on technology and has made personnel changes, too.
“The most important thing is to stay humble. We have come a long way, but there is a long way to go,” Andersson said.
GM spends $61 billion with suppliers in North America including $12 billion with Michigan-based businesses.
Automaker honored
Andersson was recognized Wednesday by the Rainbow PUSH Coalition for GM's work with minority suppliers.
Jesse Jackson, the coalition's president and founder, has long urged automakers to boost their spending with minority suppliers. Last year, GM spent more than $5 billion with minority suppliers, or more than 11% of its purchases from companies based in the United States.
Jackson gave Andersson the coalition's first Trade Advocate Award during a ceremony in Chicago.
