Hi, We're from General Motors, and we're here to give you the business

08/25/2015

Remember that saying attributed to President Ronald Reagan about being wary of government assistance: "Hi, we're from the government, and we're here to help?" Now, suppliers to General Motors might be feeling a little bit of that same trepidation: "Hi, we're from General Motors, and we're here to give you the business."

According to a recent IHS SupplierBusiness editorial, GM's new One Cost Model purchasing program is "gaining traction among suppliers—so much so that only a handful of suppliers are currently refusing to participate in the scheme." While the One Cost Model proposes to be beneficial to suppliers, only participants that actually agree to the terms with GM and pass the "smell test" will get work for the life of the program, with GM not soliciting bids from other suppliers.

To get to that point suppliers must do what many of them dread: Opening their plants and their books to the scrutiny of GM engineers and purchasing agents. For many molders and moldmakers in the tier ranking, opening their plants is one thing; opening their books to reveal internal cost data is something many resist vehemently.
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