Automotive Giants Toyota, Honda, and GM Enhance Ties with Their Suppliers
In the ever-evolving automotive industry, strong relationships between Original Equipment Manufacturers (OEMs) and suppliers are essential for navigating industry uncertainty. According to a recent study by Plante Moran, the top three OEMs - Toyota, Honda, and General Motors - have excelled in this area, focusing on communication, responsiveness, and engagement to help suppliers operate more efficiently.
Toyota, Honda, and General Motors have shown significant improvement in their supplier relations, as evidenced by their high scores in the North American Automotive OEM-Supplier Working Relations Index (WRI). Toyota earned 386 points, a 18-point increase from 2024 and its highest score since 2007. Honda rose 3 points to earn 347, its highest score since at least 2015. General Motors surpassed 300 for the first time, gaining 11 points to earn a 2025 score of 310 in the WRI.
These OEMs have demonstrated a commitment to balanced financial risk, transparency, fairness, equity, accountability, and trust, which has helped suppliers reduce costs and better align with OEM future strategies. In contrast, Nissan, Ford, and especially Stellantis have not kept pace. Stellantis ranked last in numerous categories, including communication and responsiveness, showing poorer support in reducing costs and improving quality. The gap in supplier relations scores between Toyota and Stellantis is the largest since 2008, highlighting a significant disparity in handling supplier partnerships in the current volatile environment.
Plante Moran conducted the WRI study 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. The responses represent an estimated 45% of the six OEMs' North America annual purchases.
Dave Andrea, from Plante Moran, states that automakers with higher WRI scores show greater flexibility in their relationships with suppliers. He suggests that new products or goods, like software and electronics, may require OEMs to reconsider their allocation processes, as interfaces built around traditional products may not fit with the new supply base.
Angela Johnson, a supplier relations analyst, notes that General Motors is "starting to turn the ship." Ford's score of 191 in the WRI is lower than General Motors' score of 310. Nissan's score of 249 is higher than Stellantis' score of 141. Both Nissan and Ford fell 6 points from 2024's survey, with Stellantis declining 11 points to remain in last place at 141 in the WRI.
The focus on improving supplier relations is crucial as OEMs and suppliers need to evolve their contracts to accommodate the new supply base. Strong relationships enable both parties to work together more effectively, better managing industry uncertainty with more equitable risk and cost sharing. As the industry continues to evolve, it is likely that we will see more OEMs following the lead of Toyota, Honda, and General Motors in prioritising strong, equitable relationships with their suppliers.
[1] Plante Moran Press Release
[2] Detroit Free Press Article
[3] Automotive News Article
- In the North American automotive industry, strong supplier relationships, as demonstrated by Toyota, Honda, and General Motors, contribute to improved cost reduction and better alignment with future strategies, given these OEMs' focus on financial transparency, fairness, and accountability.
- Significant gaps in supplier relations scores have emerged between the top-performing automakers, such as Toyota, and laggards, like Stellantis, who struggle with communication and responsiveness, indicating a need for improvement in keeping pace with industry leaders to more effectively manage industry uncertainty in the volatile transportation and automotive sector.
