Press release
Source: Planning Perspectives, Inc.
DETROIT, -- The turmoil in the automotive industry is reflected in the results of this year's annual study of the automakers' supplier working relations, with the most significant shift in the suppliers' ratings of the auto manufacturers since the study was launched eight years ago. The annual North American OEM - Tier 1 Supplier Working Relations Study tracks the supplier relations of the top 3 US and top 3 Japanese automakers.
Honda has taken over the top spot held by Toyota since 2002, though both companies are ranked somewhat lower this year. Toyota, which has had the best supplier working relations of any company, in any industry, for years, has dropped steadily for the past two years.
At the same time Ford, which only two years ago was rated as having the worst working relations with suppliers, has made dramatic and steady gains for the past two years. This year, Ford has the highest rating ever achieved by a U.S. automaker in the Study and is closing in on Nissan, which is in third place. Among the Japanese automakers, Honda is the most preferred foreign domestic customer, while Ford is the most preferred domestic automaker customer.
General Motors shows some improvement after a slight downturn last year, but remains well behind Ford.
Chrysler is last in supplier working relations, virtually the same position it was in last year - a dramatic decline since it was the top rated U.S. automaker in 2006.
"We have been tracking supplier relations since 1992, during which time Toyota has been clearly the industry leader in supplier relations," says John W. Henke, Jr., Ph.D., president and CEO, of Planning Perspectives, whose firm conducts the annual Study.
"Toyota supplier relations have lost significant ground in the last two years and it has slipped out of first place in our Study - a position it held since we started measuring the supplier working relations of the six automakers in 2002 with our Working Relations Index. Suppliers suggest a potential reason for this drop is a younger, less experienced staff in Toyota's purchasing group for whom the 'Toyota Way' is not yet the way of doing things."
"With respect to Ford, two years ago the company transferred the head of European Purchasing to the U.S. to be head of Ford North America Purchasing. The results have been a dramatic improvement in supplier working relations last year and this year," says Henke.
"In fact, Ford's working relations with suppliers are the highest they have been since 2001 now ranking just below Nissan. While Ford still has a lot of work to do, what they're doing with their suppliers is working. The number of suppliers that say they have 'good to very good' relations with Ford increased by 50% this year, while the number of suppliers indicating they have 'poor to very poor' working relations with Ford is down by 25 percent. Ford is clearly headed in the right direction."
Source: Planning Perspectives, Inc.
DETROIT, -- The turmoil in the automotive industry is reflected in the results of this year's annual study of the automakers' supplier working relations, with the most significant shift in the suppliers' ratings of the auto manufacturers since the study was launched eight years ago. The annual North American OEM - Tier 1 Supplier Working Relations Study tracks the supplier relations of the top 3 US and top 3 Japanese automakers.
Honda has taken over the top spot held by Toyota since 2002, though both companies are ranked somewhat lower this year. Toyota, which has had the best supplier working relations of any company, in any industry, for years, has dropped steadily for the past two years.
At the same time Ford, which only two years ago was rated as having the worst working relations with suppliers, has made dramatic and steady gains for the past two years. This year, Ford has the highest rating ever achieved by a U.S. automaker in the Study and is closing in on Nissan, which is in third place. Among the Japanese automakers, Honda is the most preferred foreign domestic customer, while Ford is the most preferred domestic automaker customer.
 |
General Motors shows some improvement after a slight downturn last year, but remains well behind Ford.
Chrysler is last in supplier working relations, virtually the same position it was in last year - a dramatic decline since it was the top rated U.S. automaker in 2006.
"We have been tracking supplier relations since 1992, during which time Toyota has been clearly the industry leader in supplier relations," says John W. Henke, Jr., Ph.D., president and CEO, of Planning Perspectives, whose firm conducts the annual Study.
"Toyota supplier relations have lost significant ground in the last two years and it has slipped out of first place in our Study - a position it held since we started measuring the supplier working relations of the six automakers in 2002 with our Working Relations Index. Suppliers suggest a potential reason for this drop is a younger, less experienced staff in Toyota's purchasing group for whom the 'Toyota Way' is not yet the way of doing things."
"With respect to Ford, two years ago the company transferred the head of European Purchasing to the U.S. to be head of Ford North America Purchasing. The results have been a dramatic improvement in supplier working relations last year and this year," says Henke.
"In fact, Ford's working relations with suppliers are the highest they have been since 2001 now ranking just below Nissan. While Ford still has a lot of work to do, what they're doing with their suppliers is working. The number of suppliers that say they have 'good to very good' relations with Ford increased by 50% this year, while the number of suppliers indicating they have 'poor to very poor' working relations with Ford is down by 25 percent. Ford is clearly headed in the right direction."