US: study sees Toyota and Honda having the best supplier relations image

Japan’s Toyota Motor and Honda Motor have ranked high for the fifth consecutive year in the auto industry study of automakers that own US production facilities and their relationships with auto parts suppliers.

The ranking is not only a moral victory, but they’re also economically in the most advantageous position to obtain the best supplies with the lowest expenses. Toyota has ranked first when it comes to supplier relations, with Honda as the close runner-up. The triumvirate was completed by a distant Ford. In fourth position stood Nissan and General Motors and Fiat Chrysler Automobiles NV were the holders of the last spot. All six are not only the biggest carmakers when it comes to US automotive sales, but also have the largest production tally across the country. According to John Henke, president of Planning Perspectives and marketing professor at Oakland University in the vicinity of Detroit, worse supplier relations equals lower profit and Toyota and Honda actually improved their tally by 8.7 percent since the study last year.

The other four automakers would have totaled a $2 billion profit jump if they had the same increase as Toyota and Honda – with General Motors for example adding $750 million in profit last year if its supplier relationship would have improved by 8.7 percent. The author has been doing the study for 15 years and says the auto parts makers have become picky about which companies they do business with – usually showing their latest and greatest in technologies to the automaker they have the best relationship with.

Via Reuters