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Suppliers love Toyota and Honda: Why that matters to you

You might think that a survey of automotive suppliers and their relationship with OEMs is the automotive equivalent of nerd prom. In some ways that's what the North American Automotive OEM-Supplier Working Relations Index (WRI) is. The study, the 17th annual conducted by Planning Perspectives Inc., is based on input from 652 salespeople from 108 Tier One suppliers, or, PPI points out, 40 of the top 50 automotive suppliers in North America. Suppliers to General Motors, Ford, FCA, Toyota, Honda, and Nissan. But the results have consequences in terms of tens of millions of dollars for OEMs - and in the quality, technology, and cost of the next vehicle you buy. There are a couple of ways to look at the results of the WRI. One is, "So what else is new?" And the other is, "Damn! How did that happen?" The study looks at five relationship areas — OEM Supplier Relationship; OEM Communication; OEM Help; OEM Hindrance; Supplier Profit Opportunity — within six purchasing areas — Body-in-White; Chassis; Electrical/Electronics; Exterior; Interior; Powertrain. In the overall rankings, Toyota is on top for the 15 th time in 17 years, with a score of 328. Honda, the only company to best Toyota (in 2009 and 2010), comes in second, at 319. Those two companies, explains John Henke, president of PPI, have collaborative working arrangements with colleagues and suppliers alike built into the very fabric of their cultures. This, however, is not a situation where one can readily conclude it is about "Japanese companies," because the third company with headquarters on the island of Honshu, Nissan, came in dead last. This is the "How did that happen?" portion. The Nissan score of 203 puts it 125 points behind Toyota. There hasn't been a number that low since the then-Chrysler Corp. scored 187 in 2010, when the company was clawing its way out of the recession. Clearly, the suppliers don't feel particularly engaged by the buyers at Nissan. Henke explains that whether a company does well or not on the WRI is rather simple. All people do things based on what they're measured on. "If you're measured on taking 10% out of your annual buy, you immediately know how to do it. But if you're also measured on improving relations, suddenly there is a new dynamic as to what you can do to achieve both.

Submit your questions for Autoblog Podcast #317 LIVE!

We record Autoblog Podcast #317 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
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Ford to rebrand SVT as 999?

Ford operates a number of performance divisions around the world. There's SVT in the US, Team RS in Europe and Ford Performance Vehicles (FPV) in Australia. But the Blue Oval has been steadily integrating its performance operations into one unit, and here we might have our first indication of what it will be called.
A reader at Jalopnik sent in a survey in which respondents were asked to gauge the name for a new performance brand from a "major automotive manufacturer," and while the identity of that automaker was not disclosed, according to the survey, the automaker is considering the name 999 for its new go-fast unit.
As our compatriots point out, the 999 was Ford's first racecar, a rudimentary chassis with a 19-liter inline-four campaigned by Henry Ford around the turn of the 20th century. (Ford also used the number to designate a Fusion fuel-cell racer a few years back.) That could prove the tie-in Dearborn is looking for in rebranding its performance operations worldwide, replacing the letters SVT, RS and FPV globally under one name.