GM Gains in Supplier Working Relations

General Motors Co. has climbed to third place—its best rating ever—in an annual study that gauges the health of working relations in the U.S. between six high-volume carmakers (OEMs) and their suppliers.

GM rated as “poor” only two years ago in the North American Automotive OEM-Supplier Working Relations Index. The survey, which monitors supplier opinions about their carmaker customers, is conducted by Planning Perspectives Inc. in Birmingham, Mich.

Toyota (first place) and Honda (second) remain the perennial leaders of the index (chart above). Ford fell to fourth but remains with the leaders in the index’s “adequate” to “good" range.

Anchoring the bottom of this year’s index with “poor” scores for the third consecutive year are Fiat Chrysler Automobiles (fifth place) and Nissan (sixth). Nissan’s rating has been skidding since 2014, when it was rated “adequate.”

PPI President John Henke says GM’s turnaround has come through improvements in all five areas used to create the index: OEM-supplier relationship, OEM communications, OEM help, OEM hindrance and supplier profit opportunity. Henke notes that Nissan has declined in each of those measures.

PPI's research indicates that carmakers with good supplier relations are more likely to benefit from supplier innovation, willingness to lower prices and investment in OEM-related innovations.