Automotive giants Toyota, Honda, and GM enhance bond with their suppliers.
In the dynamic world of automobile manufacturing, Toyota, Honda, and General Motors (GM) have been making strides in improving their relationships with suppliers. These improvements, according to experts, have been crucial in navigating market volatility and new challenges.
Toyota, in particular, has made a significant leap, increasing its score by 18 points in the Plante Moran's 25th annual North American Automotive OEM-Supplier Working Relations Index (WRI), securing the top spot. Honda and GM also ranked among the top three OEMs with improved relationships.
On the other hand, Stellantis finds itself at the bottom of the WRI, scoring poorly in areas such as communication, responsiveness, buyer accessibility, and support for cost reduction and quality improvement.
The WRI study, conducted annually by Plante Moran's Strategy and Automotive & Mobility Consulting Practice, tracks supplier perceptions of working relations with their automaker customers. The study evaluates OEMs across eight major purchasing areas, broken down into 20 commodity areas.
Honda's score of 347 in the WRI is the lowest among the Japanese counterparts, while Toyota's score of 386 is the highest. Interestingly, Honda has managed to improve its score by 3 points, reaching its highest since at least 2015.
GM, too, has shown significant improvement, surpassing 300 for the first time, gaining 11 points to earn a 2025 score of 310 in the WRI. Ford, however, has seen a decline, dropping 6 points from the previous year's survey to earn a score of 191 in the WRI.
The success of the top-ranked OEMs, according to Angela Johnson, principal at Plante Moran, lies in their ability to help suppliers reduce their costs to serve the OEM and manage uncertainty. Strong relationships are fostered through transparent, timely communications and engagement strategies that balance risk and cost sharing more equitably than their lower-ranked peers.
Dave Andrea, principal in Plante Moran's Strategy and Automotive & Mobility Consulting Practice, emphasises the need for interfaces to evolve to fit the new supply base, as traditional processes may not fit new products or commodities.
These improvements in supplier relations have enabled the OEMs and suppliers to work together more effectively, navigating industry uncertainty with more equitable risk and cost sharing. Stronger relationships also help suppliers operate more efficiently, creating a strong foundation for collaboration in the face of market unpredictability.
The WRI study was conducted from mid-February to mid-April, receiving responses from 665 executives from 398 Tier 1 suppliers serving the six automakers with the largest U.S. manufacturing footprint, representing an estimated 45% of the six OEMs' North America annual purchases.
In conclusion, Toyota, Honda, and GM's focus on supplier collaboration through consistent, transparent communication and fair business practices has been instrumental in their success. These strategies have helped suppliers understand their roles in OEM future plans and reduce operational risks during volatile market conditions.
- In the automotive industry, Toyota's focus on strengthening its relationships with suppliers through transparent communication and fair business practices has been instrumental, as evidenced by its top spot and an 18-point increase in Plante Moran's annual North American Automotive OEM-Supplier Working Relations Index (WRI).
- Stronger relationships in the finance sector, such as equitable risk and cost sharing, have been crucial for Honda and GM in the manufacturing industry, as their scores of 347 and 310 in the WRI respectively highlight their improved relationships with suppliers.
- On a contrary note, transportation challenges persist for Stellantis, with the company rating poorly in communication, responsiveness, and support for cost reduction and quality improvement, resulting in its low WRI score and last place ranking.
