Automakers’ Supplier Relations Stall

Carmakers are making little progress in improving their relations with their main suppliers, according to the 2013 North American Supplier Working Relations Index.

The index is compiled by Birmingham, Mich.-based Planning Perspectives Inc., based on how suppliers perceive their dealings with the region's six largest automakers.

The consulting firm's CEO John Henke says carmakers need to foster closer cooperation with suppliers on technologies to meet future emissions and fuel economy requirements. But he tells Bloomberg News that automakers are "failing miserably" in that regard and too often regard their vendors as enemies.

Henke notes that 43% of suppliers surveyed this year consider their working relationships with the six companies to be poor or very poor.

In the 2013 index, carmakers are ranked in the same order as last year. Toyota leads with a score of 297 out of a possible 500, up from 296 in 2012. Honda remains in second place despite a six-point slide to 287. That marked the company's sixth consecutive annual decline and its lowest rating since the survey began in 2000.

Ford improved four points to 271. There was no change at Nissan (256) and General Motors (251). Chrysler (250) gained two points.

The differences among automakers have narrowed since 2005, when Toyota topped the index at 415, and General Motors lagged the pack at 114.

Suppliers are wary about adding capacity or hiring new workers because some customers are overly optimistic in projecting their volume, according to Henke. He says the combined company U.S. sales targets for 2013 total about 18 million vehicles compared with industry forecasts of demand in the mid-15 million-unit range.

Planning Perspectives compiles a separate report about the supplier relations of German carmakers. BMW is the most improved, up 17 points to 324 this year, followed by Mercedes-Benz (289) and Volkswagen (231).