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Toyota Soars, Ford Plummets; Honda, GM, Nissan, and Stellantis Make Gains in 2024 Working Relations Study

PR Newswire ·  May 20 04:00

DETROIT, May 20, 2024 /PRNewswire/ -- Results of the 24th annual North American Automotive OEM - Supplier Working Relations Index (WRI) Study that evaluates relations between US automakers and their suppliers were released today by Plante Moran.

Do the legacy automakers need a new business model -- more like the new EV manufacturers? The study suggests they do.

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FIG. 1: This has been a challenging year for the automotive industry, with on-again, off-again vehicle programs that cost billions of dollars and create thousands of jobs. Through it all, Toyota has excelled and topped the WRI at 368, followed by Honda and GM. Nissan improved significantly overall in fourth, while Ford dropped 22 points to fifth place. Stellantis, still in last place, improved seven points.
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Fig. 2: Purchasing Effectiveness rates the business attributes of the Purchasing organization including timely communication, early involvement in product development, and resolving payment and other issues promptly. Honda takes first place, followed by Toyota and GM. Stellantis is last.
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FIG. 3: Supplier Trust of the OEM is critical to good working relations. Toyota, Honda and GM maintained their high level of trust with their suppliers; Nissan improved somewhat, Ford dropped significantly again this year, and Stellantis was unchanged in last place.
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FIG. 4: Having automakers share long-term strategy with suppliers is critical to their mutual success. Suppliers have to invest in new technology, tooling and plants -- especially with EVs coming on-stream. In some cases, suppliers also have to continue supplying traditional parts and components for gasoline-powered cars and trucks, making production a balancing act that can't be managed in an information void. Toyota in first place improved even more this year, followed by GM and Honda. Ford dropped significantly year-over-year.
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