General Motors Co. (GM) parts suppliers - who submit ideas to cut component expenses - will now evenly split any cost savings over the life of the part or component.

The move replaces GM's former deal whereby suppliers received only 35% of the money saved during the first year and then nothing after that.

"This shows that we are committed to engaging with our suppliers," said GM spokesman Dan Flores. "We hope this will generate more enthusiasm to doing business with new GM and pull ahead more ideas."

The change is one of a handful enacted by Bob Socia who took over as GM's vice president of global purchasing and supply chain after the departure of Bo Andersson in June.

"We see this as a positive step in the right direction and will build stronger partnerships with its suppliers," said David Ladd, spokesman for International Automotive Components Group, which supplies vehicle interiors. "We hope to take part in the program."

The U.S. auto makers have traditionally ranked below their Asian counterparts when it comes to supplier relationships, according to an annual supplier study by Planning Perspectives, based in Birmingham, Mich.

GM finished second to last with a score of 183 out of a possible 500 in the May study, which tracks supplier relations based on a variety of variables. Chrysler Group LLC was last with 162, while Honda Motor Co. was first at 349.

Relationships between auto makers and suppliers were further stressed this year as GM and Chrysler filed for bankruptcy and a worldwide recession resulted in production cuts.

"This is an incredible financial incentive GM is giving its suppliers," said John Henke, president of Planning Perspectives. "In most industries, all cost-savings revert back to the customer. With the bankruptcy behind them, I think there is a recognition within GM that they can start fresh."

Henke added the auto makers who have a better working relationship with their suppliers get better technology and innovation in their products.

"Both parties now need to put the past behind them and move on," Henke said. "This is a new game."

Flores had no details on how much the change might save both GM and the parts makers. - By Jeff Bennett, Dow Jones Newswires; jeff.bennett@dowjones.com; 248-204-5542