Suppliers to OEMs: We Think We're Turning Japanese


The 2014 Annual Automotive OEM-Supplier Relations Study came out in May 2014 and it showed that Japanese OEMs may be rebounding after a couple down years when it comes to their relationships with suppliers. The study, published by Planning Perspectives, Inc. (PPI) relies on the Supplier Working Relations Index®. Up until 2011, Japanese OEMs held a healthy advantage with their suppliers. However, 2011-2013 saw that advantage start to vanish, almost completely. The most recent study suggests that Japanese OEMs may have regained their footing with Toyota, Honda and Nissan finishing first, second and third respectively. German OEMs did just as badly as those here in the United States.

Why does it matter? According to PPI, these relationships have “directly correlated to [an OEM's] profitability and competitiveness.” It can also lead to suppliers providing their “newest technology” and “best pricing” to the OEMs with whom they have the best relationships. Suppliers, not surprisingly put their best resources and best people on the relationships that they value the most.

Some other results include:

  • GM moved back into the “Poor to Very Poor” range thanks to a dip from 2013. The dip stemmed mostly from less trust from GM’s suppliers.
  • Nissan was the only OEM to improve in every aspect of the survey.
  • Chrysler also fell back into the “Poor to Very Poor” range as it dropped in the ratings for the first time in six years.
  • Toyota improved for the first time in seven years, apparently regaining its footing.

View This Blog


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley & Lardner LLP | Attorney Advertising

Written by:


Foley & Lardner LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.