The 14th annual automotive industry study of Tier 1 suppliers conducted by Planning Perspectives Inc. researches major U.S. and Japanese automakers’ working relationships with their suppliers. It indicates that while Japanese firms are making headway, the Big Three are again falling behind. The data collected can be directly correlated to the company’s profitability and competitiveness in the market, and therefore the study carries some weight in corporate boardrooms.
“The annual study focuses primarily on Chrysler, Ford, General Motors, Nissan, Honda, and Toyota, because these six automakers comprise 86 percent of light vehicle sales in the U.S.,” according to a press release. Therefore, the Germans have been left out of this aspect of the report.
“History repeats itself. Historically, the Japanese automakers — especially Toyota and Honda — had a commanding lead in supplier relations and were the companies suppliers preferred to deal with. Then, the combination of the 2008 recession, the impact of the 2010 Japanese earthquake, and the increase in purchasing personnel caused both companies to lose their way and their rankings plummeted,” said John W. Henke Jr., the president and CEO of Planning Perspectives.
“Meanwhile the US automakers, under new purchasing leadership, made significant improvements in their supplier relations. Now, however, the ranking trends suggest that the Japanese automakers have figured out their problems, corrected them, and are back on track, while the US automakers appear to be faltering,” he added.
Check out what the study had to say about the following six companies, which are ranked in order from most favored to least, according to the PPI study. You can check out the full report here.