Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
      Apollo to raise prices of Vredestein brand tires
      China's tire production up in 2020
    • Greenergy, Haldor Topsoe tech turns tires to fuel
      India decides against extending carbon black duties
      GRI expanding ag tire capacity at 3-year-old Sri Lanka plant
      Apollo to raise prices of Vredestein brand tires
    • NewAge Industries celebrates 15 years of employee ownership
      India decides against extending carbon black duties
      WCCO task force navigates pandemic, expands communications
      JobsOhio funding gives Sperry & Rice room to grow
    • Safic-Alcan and Arkema working together on distribution deal
      India decides against extending carbon black duties
      Biesterfeld to supply Denka acrylate rubbers
      Ace Products & Consulting partners with Wallace Instruments
    • Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
      Adriano Alfani named Versalis CEO
      Maroon Group adds to Southeast sales team
    • India decides against extending carbon black duties
      Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
      Taiwan tire makers propose settlement of import duties case
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
      New Products: MonTech automates bale cutter for safety, productivity
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
      Apollo to raise prices of Vredestein brand tires
      China's tire production up in 2020
    • Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
    • Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
      Top Glove reopens COVID-hit factories with enhanced precautions
      Malaysia electronics group to enter rubber gloves sector
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 19, 2015 02:00 AM

Suppliers rate Toyota, Honda highly in study

David Sedgwick,
Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    DETROIT—As far as North American suppliers are concerned, Toyota Motor Corp. and Honda Motor Co. Ltd. are the gold standard, while Ford Motor Co., Nissan Motor Co. Ltd., Fiat Chrysler Automobiles N.V., and General Motors Co. are also-rans.

    In the latest annual survey by Planning Perspectives Inc., 435 suppliers gave the purchasing operations of Toyota and Honda high grades for their top executives, bureaucracies and efforts to cultivate long-term relationships.

    BMW A.G., which was rated separately, also drew high grades.

    But Ford, Nissan, FCA and GM each got worse scores than they did last year, ending a six-year stretch in which they had closed the gap with Honda and Toyota. Volkswagen Group, which was graded separately with BMW, did worst of all.

    The survey did not get enough get responses to rate Hyundai Motor Group and Mercedes-Benz, a division of Daimler A.G.

    John Henke, president of Planning Perspectives and author of the survey, says the Detroit 3 auto makers appeared more willing to collaborate with suppliers during the recession, when their survival was at stake.

    Now, purchasers at FCA and GM once again are focusing primarily on price cuts, Henke said.

    “When internal mandates come down to reduce cost, buyers are simply reverting back to their old adversarial ways of getting the reductions,” he said in a statement.

    Henke graded each auto maker on five metrics: relations with suppliers, communications, efforts to help suppliers cut costs, willingness to share savings and avoidance of hindrances such as late engineering changes.

    GM Purchasing Chief Steve Kiefer said he is working to improve relations with suppliers.

    “While there is more work to do, we have set clear objectives and implemented tools to achieve mutual business goals,” he said in a statement.

    FCA Purchasing Chief Tom Finelli acknowledged his company's poor results and said he has launched a turnaround to improve ties with suppliers.

    “We have significant progress to make,” Finelli said in a statement. “We have recently reorganized to focus on supplier relations globally, which should help us, among other things, drive consistent behaviors across our regions as well as throughout all levels of the organization.”

    Here's how the auto makers rated:

    • Toyota was most willing to compensate vendors for raw material costs and ensure their financial welfare. Toyota's index score was 336, up from 318 last year.

    • Honda got top grades for efforts to build trusting relations with suppliers. Like those at Toyota, Honda's purchasing chief and bureaucracy drew high grades from suppliers. The company scored 330, up from 295 last year.

    • Ford passed Nissan into third place, although its score edged down from 267 to 261. Ford improved communications with vendors, but the percentage of suppliers that say they have good relations with Ford dropped for the third straight year.

    • Nissan's score plunged from 273 to 244 as suppliers faulted the automaker for “adversarial” efforts to seek price reductions. Suppliers also said Nissan was reluctant to offer full compensation for raw material cost increases.

    • GM fell from 244 to 224. Despite efforts by Kiefer to improve relations, GM's purchasing bureaucracy aggressively sought price cuts.

    • FCA's score fell from 245 to 224 as suppliers faulted it for slow payments and lack of effort to help vendors cut costs.

    Planning Perspectives rated BMW and Volkswagen separately, in part because they are relatively recent additions to the study.

    BMW scored 346, up from 311 a year ago. It drew high marks for communications, supplier profits and lack of hindrances.

    Volkswagen got a low score of 220, although it improved from last year's 181. VW did slightly better in all five metrics, and its Chattanooga, Tenn., assembly plant scored significantly better than its Puebla, Mexico, facility did.

    If the Henke report is accurate, then Toyota and Honda have re-established their pre-recession status as the clear favorites among suppliers. But the Detroit 3 still achieve significantly better ratings than they did before the recession.

    Last November, GM introduced the One Cost Model, a program that allows some vendors to get no-bid contracts. GM engineers visit the supplier's factory and study its production costs. If GM and the vendor agree on the part's cost, the supplier gets the contract.

    Meanwhile, Ford continues to fine-tune its Aligned Business Framework, a program that allots 65 percent of its purchasing budget to 80 direct suppliers and 25 indirect vendors.

    On May 14, Ford said it would continue to promote closer relations with key suppliers through the program. “We are pleased Ford is the top domestic auto maker in the Planning Perspectives study, and we'll build on this strong foundation.”

    Nissan, Honda and Toyota had no immediate comment.

    With these and other initiatives in mind, Julie Fream, president of the Original Equipment Suppliers Association, says she was a bit surprised by some of the low scores.

    Toyota, Honda, Ford, Nissan, GM, FCA and Volkswagen all have held town-hall meetings with their suppliers under OESA's auspices, she noted.

    “I know that all of the auto makers are working to improve their relations with suppliers,” she said. The low scores were “a little surprising because I've seen all of them working at it.”

    Related Articles
    Japanese execs agree to plead guilty to price fixing
    Honda honors Bridgestone's N.C. plant
    Toyota won't enforce more than 5,600 fuel cell patents
    Auto makers rethink spare tire issue
    GM steps up supplier courtship
    Nissan expecting 1,000 more supplier jobs in Tennessee
    GM honors Mid-States; Rubber Firm gets award for high quality performance
    Toyota to expand in Mexico, China
    North American vehicle output to hit record highs
    Volkswagen faces multi-billion emissions lawsuit
    OESA hires senior economist
    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION