Suppliers & OEM: Things Fall Apart

Misery loves company.  And apparently, misery creates camaraderie.  And when things improve: So much for the solidarity.

Misery loves company.  And apparently, misery creates camaraderie.  And when things improve: So much for the solidarity.

At least that’s an interpretation that can be made of a recent study by IHS Automotive, the 2011 Supplier Relationship (SuRe) study.  It examined 33 global automakers.  And found that on average, the relations have deteriorated by 7.6% between 2010 and 2011.  What is notable is that the average of quality relations improved during the 2008/9 global financial crisis.  Now that things are better financially, things are worse relationally.

SuRe index by automaker (top 20)

Carmaker

2011

2010

Porsche

617

645

Toyota

614

665

Honda

602

657

BMW

594

642

Audi

592

641

Mercedes

581

633

Volvo

566

596

Nissan

553

579

Mazda

550

NC

Jaguar/Land Rover

550

562

Volkswagen

540

579

Ford North America

535

588

Suzuki

535

NC

Skoda

534

524

Hyundai/Kia

529

551

PSA

514

557

Average

514

571

Ford Europe

510

547

GM North America

496

519

Renault

495

522

C

IHS Automotive does acknowledge significant improvement at Chrysler.  It was at the bottom of the SuRe during 2007 and 2010.  Now it has gained traction with partners.  It also notes, however, that Fiat, the majority owner of Chrysler, is not doing so well: “the main problem is in the perceived poor long-term prospects on offer to suppliers.  Suppliers commented negatively on the carmaker’s product launch strategy, in particular.”  Which is not particularly propitious for Chrysler, as Fiat’s product launch strategy is key for the company’s prospects.