Automotive suppliers reported having mixed feelings about their relationships with Detroit's three automakers as Toyota Motor Co. once again received the highest accolades in an annual study released on Monday.
General Motors Co. achieved its highest approval in the 23 years of the North American Automotive OEM-Supplier Working Relations Index from accounting firm Plante Moran that looks at supplier trust and return on investment. Ford Motor Co., meanwhile, saw the largest decrease in sentiment of the six included automakers after it separated its electrification business from its traditional operations. Stellantis NV once again was below its competitors, but saw the largest gain under new purchasing leadership after revoking a freshly instituted, unpopular supplier policy last year.
With suppliers representing 70% of an automobile's value, supplier relations have major implications on product integration, quality and cost and even economic development, said Dave Andrea, a principal and automotive strategist at Plante Moran. As automakers continue to face supply-chain snags, especially around a global shortage of microchips, strong working relationships can be valuable for finding solutions faster and avoiding production shutdowns.
