Kinder, Gentler Face for Purchasing

Executives of General Motors Corp. and Ford Motor Co. say they are advancing a kinder, gentler purchasing model, and a new study supports the claim.

The 2006 Planning Perspectives Inc. supplier study, an annual barometer of the working relationship between parts makers and the top six auto makers, shows sizable improvement this year for GM, Ford and Chrysler Group.

Meanwhile, Toyota Motor Corp., Honda Motor Co. Ltd. and Nissan Motor Co. Ltd. maintain their strong positions with regard to the study's “working relations index.”

“Clearly, whatever is being done (by the Big Three) is having an impact on suppliers,” says John Henke Jr., president of Planning Perspectives.

“The Big Three still have a long way to go (with supplier relations), but they are on their way,” says Henke. “Meanwhile, the transplant auto makers retain their positions — no better, no worse.”

The study reveals, however, continuing difficulties in Big Three supplier relationships.

For instance, 83% of survey respondents rate their relationship with GM as poor, compared with 73% of Ford suppliers and 60% of Chrysler suppliers. On the other hand, 76% of suppliers rate their working relationships with Toyota as good or very good, compared with 56% for Honda.