SAE International just unveiled the results of the 2021 OEM-supplier relations study by Plante Moran’s Strategy and Automotive & Mobility Consulting, ranking General Motors third among the six major OEMs (Original Equipment Manufacturers) studied.
For more than two decades, SAE’s annual OEM-supplier relations study has looked at OEM-supplier relations based on survey responses from suppliers, with the latest 2021 study based on responses from 841 salespersons at 503 Tier 1 companies. Responses were collected between mid-February and mid-April.
Relevant study variables include things like timely communication, effective product development involvement, resolve payment issues timely, and buyer accessibility, among others. In addition to surveying relations for General Motors, the study also looks at OEM-supplier relations with Stellantis, Ford, Honda, Nissan, and Toyota, which collectively make up 60 percent of the annual buy from Tier 1 suppliers.
Toyota ranked first in this year’s study, marking its eleventh straight year at the top of the list.
General Motors, as well as Nissan, had the highest overall points gains year-over-year, with GM posting a 20-point gain, up to 289 points versus a score of 269 points in 2020. Meanwhile, Toyota scored 347 points to secure first place, Honda scored 316 points to secure second place, and Ford scored 249 points for fourth place. At the bottom of the list was Nissan and Stellantis (formerly FCA) with 211 points and 170 points, respectively.
“Fewer engineering late changes and better alignment between engineering and purchasing during sourcing decisions were components of Nissan’s and GM’s higher WRI [Working Relations Index] ratings,” said the Principal in Plante Moran’s Strategy and Automotive & Mobility Consulting practice, Dave Andrea.
Andrea also noted that in response to the COVID-19 pandemic, OEMs pushed for greater digital communication. “Without a doubt, OEMs’ additional resources committed to communication and information-sharing showed up in improved trust, a vital driver of the WRI study,” Andrea said.