Chrysler, GM and Ford improved supplier relations, survey says

Article by Christian Andrei, on May 23, 2011

The Detroit 3 is showing huge gains in the annual supplier survey conducted by Planning Perspectives Inc., a Detroit-based research firm. Aside from the Detroit 3, the survey also monitors the three top automobile sellers in Japan – Honda, Nissan and Toyota. The Detroit 3 did not just concern themselves with cleaning up their cost structure during the past two years.

They also improved their relationships with their suppliers as well to the point that they are within striking distance of the top performers in the industry.

For one, Chrysler Group has noticeably enhanced its relations with its suppliers just two years after a self-admitted series of problems. The survey also reveals that although Toyota and Honda still leads the pack, the gaps are far less than they were five years ago.

In fact, with the supplier relations of Honda Motor Co.’s North American manufacturing arm going on a steady slide for four years, Ford has already squeezed in just below Honda.

Furthermore, the survey discloses that General Motors, Chrysler and Nissan are in a statistical dead heat. Vehicle manufacturers obtain great rewards when they have good relationships with their suppliers.

Among these benefits include lower prices, higher quality as well as a willingness by innovative suppliers to share new breakthroughs.

The findings of the survey were supported by the experiences of Scott Paradise, the marketing vice president for the Americas for Magna International Inc., which is the largest supplier of North America.

Topics: chrysler, gm, ford

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