Supplier Relations Summary of OEM-Supplier Relationship Survey Barcelona 6 th May 2005 Automotive News Europe/SupplierBusiness.com

Supplier Relations

Summary of OEM-Supplier Relationship Survey

Barcelona 6th May 2005

Automotive News Europe/SupplierBusiness.com

Supplier Relations

Three key questions

How do suppliers see their car maker partners?

Who do they want to work with and why?

What does that mean for the different car makers?

OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

Pricing

Ford is placing greatest emphasis on price of parts – Honda, BMW and Toyota the least


Pressure to reduce prices

Quality

BMW and Toyota are the most demanding on quality, Fiat and SEAT the least


Technology

German luxury makes emphasise product technology heavily – Fiat and GM Europe less so


Which carmaker is preferred as customer? (1) Toyota and BMW – and not Ford, Fiat or General Motors


Which carmaker is preferred as customer? (2)

Toyota, BMW, Mercedes-Benz


Which customer is most attractive to do business with?

Fiat

SEAT

Škoda

VW

Audi

RenaultM-B

Toyota BMW

FordGME

HondaNissan

Volvo PSA

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Why?

Difficult to make money with General Motors, Ford or Fiat – while BMW and Toyota offer acceptable returns


Why is it difficult to make money? Unpopular carmakers do not reward cost saving ideas


Why is it difficult to make money? Their adversarial contract negotiations are an extra cost


Why is it difficult to make money? They do not support suppliers to overcome challenges


Why is it difficult to make money? They do not offer suppliers healthy, predictable volumes


Suppliers do not feel respected

Some car makers are not winning supplier support


Suppliers do not have confidence in these carmakers Suppliers see greater danger of their products and

innovations being copied


Implications for OEMs

Suppliers can shift their customer base


Methodology

Survey undertaken in March and April

Results cover 15 major car maker brands

Responses from 84 suppliers in Europe

Full results available from SupplierBusiness.com shortly as special supplement

Contact [email protected]


Documents

Supplier Relations Summary of OEM-Supplier Relationship Survey Barcelona 6 th May 2005 Automotive News Europe/SupplierBusiness.com