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Ford's Relationship With Suppliers


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According to the Detroit Free Press (5/24), the 23rd annual Automotive Supplier Working Relations Index..."which provides a window into the quality of relationships six major automakers have with their suppliers based on confidential feedback from suppliers reveals Ford has sunk "significantly" over the past year with its supplier relations in areas including trust, integrity and long term strategy.

 

Story goes on to say that Toyota, Honda and GM have the best relationships with respective "scores"  of 338, 331 and 297  with Ford at 219.  Stellantis came in at 145.

Article also referenced fact that..."Ford and Stellantis are notorious for beating up suppliers on price"......

 

Story goes on to say that John McElroy was "shocked" that Nissan  beat Ford at 225.  He went on to say .."Good supplier relationships lead to higher profits,  even if you are paying a little more for whatever suppliers are selling you.  I

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1 minute ago, Bob Rosadini said:

According to the Detroit Free Press (5/24), the 23rd annual Automotive Supplier Working Relations Index..."which provides a window into the quality of relationships six major automakers have with their suppliers based on confidential feedback from suppliers reveals Ford has sunk "significantly" over the past year with its supplier relations in areas including trust, integrity and long term strategy.

 

Story goes on to say that Toyota, Honda and GM have the best relationships with respective "scores"  of 338, 331 and 297  with Ford at 219.  Stellantis came in at 145.

Article also referenced fact that..."Ford and Stellantis are notorious for beating up suppliers on price"......

 

Story goes on to say that John McElroy was "shocked" that Nissan  beat Ford at 225.  He went on to say .."Good supplier relationships lead to higher profits,  even if you are paying a little more for whatever suppliers are selling you.  I

 

as I was saying.."if you've got a problem, suppliers will put all their effort into helping you out. If you are short on parts, or something is down, they'll go the extra mile if you treat them well.  If someone is treating you badly, you're not going to prioritize them.  There's a hidden cost to bad relationships.".

 

Nothing surprising about that view.  What comes to mind...."you get what you pay for" as well as..."once you've beat up everyone on the playground, you have no one left to play with".  

 

I'm sure a lot of Ford's recall history is related to this subject.  The article also does mention the "shake up" in Ford's global supply chain leadership so hopefully that will bring about improvement.

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Thank you for sharing Bob Rosadini. Looks like supplier relations at Ford keep getting worse, which as you mentioned is no surprise. In 2021, Ford's score in the Plante Moran Working Relations Index dropped into the "Poor-Very Poor" category. Ford is the only automaker whose score declined every year in 2021, 2022, and 2023.

 

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28 minutes ago, AM222 said:

Not surprising. I believe this is the reason North American Fords have been having issues (recalls).  


It’s one reason but that doesn’t explain engine design problems or assembly line issues like loose bolts.

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