Toyota leads supplier relations rankings, while Ford and Stellantis face ongoing declines marked by escalating costs and trust issues.
Toyota Motor North America Tops in Supplier Relations, According to Plante Moran Study
In the latest annual North American Automotive OEM Supplier Working Relations Index study by Plante Moran, Toyota Motor North America has taken the lead, with a significant increase in its score. The Japanese automaker scored 386 points, up from 338 last year, while Honda increased from 331 to 344, and General Motors (GM) rose from 297 to 299.
The study, which evaluates communication, responsiveness, accessibility, engagement, and buyer knowledge, among other factors, found that the top 3 OEMs scored better in these areas. Toyota, Honda, and GM are expected to improve and potentially rise in the index in the coming years, as they have shown improvements despite market volatility.
One of the key areas that need improvement, according to Andrea, is better communication from OEMs regarding Electric Vehicle (EV) investment and the financial aspect of handling sunk costs and equitable sharing of risk and cost.
Suppliers have reported that the response to changing EV consumer demand by OEMs can greatly affect trust, as reported in the last few studies by Plante Moran. The timing of the survey may have affected the influence of tariffs on the index, as noted by Johnson. There will be varying strategies to mitigate against tariffs, as mentioned by Mark Barrott.
Some OEMs are better positioned to withstand tariffs, as stated by Mark Barrott. Opportunities for internal alignment with multi-regional operations were seen in some written responses from suppliers for Toyota and Nissan, as mentioned by Johnson.
The number one thing that drives suppliers' scores for each OEM is cost, as stated by Johnson. The financial support provided by OEMs in response to tariffs will influence how suppliers view the OEM's response, according to Barrott.
Suppliers reported feeling like a true partner 12 times more for the top 3 OEMs versus the bottom three. Ford's score is 191, down from previous years and firmly in the 'poor to very poor' range. Nissan, Ford, and Stellantis have dropped in the rankings compared to previous years. Nissan's score dropped from its high of 255 in 2024 to 249 this year.
GM's improvement in the rankings is surprising, as it faces similar circumstances to Ford and Stellantis, but has shown a change in behavior and is starting to turn things around. Honda and GM follow Toyota in the rankings, with Honda improving from last year and GM maintaining a steady score.
Suppliers want both the stability and consistency from the Japan headquarters of Toyota, but they also want more regional autonomy in the US-based operations, as stated by Johnson. This balance between centralised and decentralised decision-making is crucial for maintaining strong supplier relations in the future.
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