OEM-Supplier Relations Study Results Summary June 2010

OEM-Supplier Relations StudyResults Summary

June 2010

Overview

• Sixth annual OEM-Supplier Relations Study

• Survey conducted May/June 2010

• 192 Respondents

2SupplierBusiness 2010

Survey Methodology• Who we ask: SupplierBusiness has researched the automotive supply base for

over a decade. In that time the company has gained an extensive global network of contacts. We select and email suppliers, inviting them to participate in an online survey

• Why suppliers respond: The survey provides an excellent opportunity for

suppliers to express their thoughts on their relationships with OEMs. The survey results are covered in Automotive News Europe and SupplierBusiness Analysis (a specialist magazine dedicated to automotive supply base issues). The results are will also be presented at the annual Automotive News Europe Congress. Respondents also receive a copy of the results

• Type of questions: The questions are designed to elicit qualitative answers. We

are trying to find out how suppliers feel about the OEMs, which is subjective. We do not expect suppliers to perform any research before responding

• Supplier choice: At the start of the study we ask respondents to identify which OEMs they work with. Subsequent questions are filtered so that OEMs are ranked only by suppliers that have dealings with them. This applies to all questions except those asking to rate “attractiveness”. Suppliers can have a view on how attractive an OEM is, without having already worked with it

3SupplierBusiness 2010

Which carmakers are most attractive to work with?

SupplierBusiness 2010 4

Which carmakers are most attractive to work with?

• Japanese and premium European automakers remain the most attractive

• Toyota slips from first to fifth place

• BMW, which was becoming less attractive to suppliers last year, considered the most attractive

• Ford North America, the OEM which gained the most last year, rises from 13th to 7th position

• Suppliers still cautious of Chrysler, which trails in last place. However, its score improved on last year. GM Europe and North America made significant improvements compared to last year as well


Which carmaker makes the highest demands to reduce price?



Ford North America BMW



• Volkswagen overtakes GM as the most demanding OEM with respect to price

• GM and Ford consistently becoming less demanding since 2006. Of those, Ford North America has improved the most in the opinion of suppliers

• BMW, which appeared to have adopted a more aggressive purchasing strategy in recent surveys has not become significantly more demanding this time. This probably explains, in part, the automaker’s return to the top of the attractiveness chart


Which carmaker makes the highest demands to achieve high quality?


Which carmaker makes the highest demands to achieve high quality?

• Audi, identified last year as an OEM becoming ever more demanding for quality, claims the top spot

• Toyota, top last year, significantly behind Honda and Audi

• Ford North America improves substantially in previous 12 months

Hyundai/Kia has fallen substantially compared to last year


Which carmaker makes the highest demands for the best product technology?


How highly do you trust the commercial partnerships with the following carmakers?



• Suppliers most trust the Japanese and premium European OEMs, but are least trusting of GM Europe, GM North America and Chrysler

• However, GM and Chrysler are improving in the opinion of suppliers




2006 2008 2010

Chrysler 1.4 1.7

Ford Europe 1.4 1.6 2.1

Ford North America 1.6 1.7 2.3

GM Europe 1.3 1.7 1.9

GM North America 1.3 1.3 1.7

Scoring SystemThe possible answers were scored as follows: Very low: 0Low: 1Moderate: 2High: 3Very high: 4 An OEM’s overall rating is the mean average of all the responses

How good is the opportunity to make acceptable return on investments with the following carmakers?


Respondent Demographics

Company Headquarters Company Size


Respondent DemographicsAreas of business (multiple answers possible) Job function (multiple answers possible)


Documents

OEM-Supplier Relations Study Results Summary June 2010