Monday, 23 May 2022 14:38

Relationships are Hard Work. Suppliers say Chrysler Parent Stellantis Needs to Try Harder

Written by Eric D. Lawrence, Detroit Free Press


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Chrysler parent Stellantis has the worst working relations with North American automotive suppliers of six major automakers, according to a closely watched annual study of supplier perceptions.

While all six automakers---Toyota, Honda, General Motors, Ford, Nissan and Stellantis---maintained their positions relative to their competitors in Plante Moran’s 22nd annual North American Automotive OEM-Supplier Working Relations Index Study, Stellantis saw the most significant shift, plunging 42 points to 128 on the zero-to-400-point index.


Toyota, the top performer, dropped two points to 345. Honda rose 18 points to 334, GM fell two points to 287, Ford dropped seven points to 242 and Nissan increased eight points to 219, according to a news release.


The study surveyed 673 salespeople from 436 Tier 1 suppliers, representing 41 of the top 50 North American suppliers. The results include data from 2,226 buying situations, such as brake systems for Ford, tires for Toyota and seats for GM, the release said.


The state of automaker and supplier relations is important to average car buyers, according to Dave Andrea, principal in Plante Moran’s Strategy and Automotive and Consulting Practice, not just for bragging rights. Suppliers provide much of the content in every new vehicle.


“When you think about that the supply base provides 70% plus or minus of the value of a vehicle, it’s incredibly important from the standpoint of what technologies are in those vehicles, what the cost of those technologies are, what the quality of those are,” Andrea said. “When you look at the value chain, the supply base is creating the new innovations, the new software and really driving the cost of the vehicles, because ... 60-70% of the value of the vehicle is produced by the supply chain.”


The past year, with supply chain disruptions and the lingering headaches from the coronavirus pandemic, has been hard on the auto industry, and that’s caused tension between some automakers and their suppliers, creating a cost, Andrea said. The shift toward electrification potentially...

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