GM, having made few friends among its supply base in recent years, will eliminate across-the-board price cut demands and instead focus on "target pricing" for specific components. Assuming that the company is realistic in setting these targets, this will mark a significant improvement in how it does business with the companies that supply the majority of the content in new vehicles. The concern, of course, is that the aggregate total cost-cutting goals will remain overly aggressive, and that target prices will be established that are not grounded in reality in order to meet those goals. It should be interesting to see how this one plays out, but one can imagine that there's still going to be a lot of hurt feelings by the time the process runs its course.


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