Study: Suppliers Like Toyota, Honda Best

Study: Suppliers Like Toyota, Honda Best

As has been the case for years, automotive suppliers like doing business with Toyota and Honda but their relationships with General Motors are improving, according to a new report.

Toyota ranked first, followed by Honda, Nissan, Chrysler, GM and Ford, respectively, in their relationships with suppliers, according to the study by Planning Perspectives Inc., a consulting firm in Birmingham, Michigan, released today.

GM wins for most improved. It had the most dramatic year-over-year increase in the 15 years of the study, said company President and Chief Executive John W. Henke, Jr. GM has held last place for the past 15 years; now it ranks second to last above Ford. Henke credits the improvement with a program instituted by GM in 2005 to enhance supplier relations.

The firm issues an annual report card on how suppliers grade their relationships with auto manufacturers. This year the firm surveyed 308 top-tier parts suppliers. The survey ranks automakers on a scale of zero to 500, with 500 being the best, on such things as degree of trust, open and honest communication, amount of help given to reduce costs and the opportunity to make a profit.

Despite GM’s improvement, the Big Three still scores a failing grade. A ranking of zero to 249 indicates very poor to poor supplier relations, the study authors said.

Here are the class rankings and grades:
1.  Toyota     415
2.  Honda     380
3.  Nissan     289
4.  Chrysler  199
5.  GM         274 (up from 131 in 2005 for the biggest improvement)
6. Ford        162

Source: Planning Perspectives

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.