GM, Ford Improve Relations with Their Suppliers

Ford and General Motors have bolstered their relationships with suppliers in North America, according to this year’s analysis by Planning Perspectives Inc. The Birmingham, Mich.-based firm reports that Nissan and Fiat Chrysler Automobiles continued to slide in the ratings.

Toyota and Honda maintained their industry lead in 2016 with Supplier Working Relations Index scores of 332 and 323, respectively, although each slipped slightly. Ford ranked third at 267, followed by GM (250), Nissan (225) and FCA (222). The annual buyer-supplier analysis assesses only the North American market’s six largest carmakers.

Planning Perspectives President John Henke Jr. says higher index ratings translate into more operating profits for carmakers. His study praises GM as the only carmaker to show “meaningful improvement” this year in purchasing performance. In contrast, the study indicates Nissan has deepened an adversarial attitude toward suppliers.

Last year GM tied with FCA for last place. Carmakers improve their scores by involving suppliers earlier in the product development cycle, building trust, agreeing to longer-term contracts and recognizing the need for their vendors to be profitable.