Results from the latest North American Automotive OEM-Supplier Working Relations Index® (WRI®) Study, conducted by Plante Moran, reveal a complex landscape of OEM-supplier relationships amidst significant market challenges. The study, now in its 25th year, ranked Toyota, Honda, and General Motors at the top, while Nissan, Ford, and Stellantis saw declines in their scores, reflecting varying levels of supplier engagement and support.
According to the results, Toyota achieved a notable leap of 18 points to a score of 386, marking its strongest performance since 2007. Honda and GM also made improvements, scoring 347 and 310 respectively. GM’s current ranking is particularly reminiscent of its past struggles; it has shown significant recovery from previously holding the lowest score 20 years ago. The increase in scores for these top three automakers is attributed to their established relationships with suppliers, which have been crucial in helping them navigate uncertainties related to shifting market dynamics, government policies, and the rise of low-cost competitors, particularly from China.
In stark contrast, Nissan’s score dropped by 6 points to 249, and Ford similarly fell by 6 points, maintaining fifth place. Stellantis faced an even steeper decline, falling 11 points to a score of 141, the lowest recorded in the study. The gap between Toyota and Stellantis, now standing at 245 points, is the widest observed since 2008, underscoring the depth of Stellantis’ challenges in this competitive landscape.
Experts indicate that the ability to foster effective communication, responsiveness, and mutual trust is essential for improving supplier relations. Dr. Angela Johnson from Plante Moran suggests that suppliers appreciate OEMs who engage transparently with them, particularly regarding risk management and cost-sharing strategies. This value placed on open dialogues is consistent with findings from previous years’ studies, which emphasised the role of established partnerships in achieving sustainable outcomes amidst supply chain volatility.
Industry observers have noted that while Toyota and Honda have consistently scored well, they face ongoing tests as their North American operations evolve and adapt to more westernised business practices. Specifically, upcoming leadership changes at Toyota could impact its long-standing rapport with suppliers and challenge it to maintain its top position in supplier relations.
The study further highlighted that OEMs who successfully align their strategic goals with the capabilities and needs of their suppliers tend to achieve better financial outcomes for both sides. This connects to broader industry trends where sharing risks and equitably distributing costs are becoming increasingly vital to fostering strong partnerships.
Consequently, as the automotive sector continues to grapple with significant changes—ranging from the push towards electric vehicles to navigating production disruptions—the differences in supplier relationships among the leading and lagging automakers paint a telling picture of industry dynamics. While Toyota, Honda, and GM have made strides through effective engagement with their suppliers, the challenges faced by Nissan, Ford, and Stellantis point to the critical need for these firms to reassess and strengthen their approaches to OEM-supplier collaboration.
This article incorporates elements from industry studies to provide context and contrasts with the original press release, while maintaining editorial neutrality. Let me know if you would like me to adjust or include any additional information.
Source: Noah Wire Services
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