The Brilliant & Abysmal Relationships Between Automakers & Suppliers - AAH 698
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- Опубликовано: 11 сен 2024
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Every year Plante Moran surveys suppliers in North America to find out how much they like or hate working with automakers. Some automakers are loved and respected by suppliers, others not so much. Dave Andrea from Plante Moran digs down into their results.
PANEL:
Dave Andrea, Principal, Plante Moran
Ken Zino, AutoInformed.com
Gary Vasilash, shinymetalboxes.net
John McElroy, Autoline.tv
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In the 3rd quarter earnings call of last year Farley gave a surprising candid answer to why their warranties are so high. Although he was addressing the warranty costs it reveals the problem they have with suppliers. Here is the full quote from Farley:
"We definitely had the largest complexity customer-facing of any brand, and we also ran the
business on products instead of platforms and systems. Our engineers and supply chain team
did not have competitive tools like IT systems and parts release IT. We weren't cooperating with
the suppliers the right way on cost reduction. We kind of negotiated with them every year, but we
weren't really getting into redesigning the parts and getting the complexity out of the suppliers'
manufacturing system."
Farley went on from there but I think that quote says more than enough to get the basic story across. Ford's problems with suppliers are very structural and they are not going to turn around in a day or even a year by hiring a few people who know how to work better with suppliers.
Dave Andrea totally understands the complexities of maintaining strong relationships with suppliers. It takes a village and the full support of the village chief(s) to be a preferred customer.
The payoff is sometimes difficult to measure in real time but we will clearly see good and bad examples in this industry transition going forward.
Great show!!
Need to start just inviting 1 guest. The second person has just sat for the last few weeks
I agree, or get a more relevant 4th wheel. Cheers
Yet another fascinating and informative session. Thank you!
Thank you for the very interesting conversation!
Another great insight in the automotive industry and supply chain, Autoline team keep up with great work ❤😊😊
Honda and Toyota have good supplier relations because they use far fewer suppliers and carryover more parts between their vehicles, heavily Japan based suppliers (which are basically owned as a conglomerate with the OEM under a single company) which are less likely to criticize, and hardly ever innovate unless they are using Japanese suppliers. It is the slow pace of change and simplicity that suppliers like about the Asian OEMs. I have no idea where they guys are coming up with this stuff about certain suppliers being more thoughtful and caring.
That has been taken into account in the survey already. No most suppliers for Asian OEM's and NOT Japanese they are north American so what are you talking about? The monroney labels show the parts breakdown and it clearly shows the origins and the averages have been accounted for in the survey. Also the surveyors directly talk to the suppliers so they would know if the results were skewed in that favor. Which suppliers are owned by the asians that are any different from the owned suppliers from the big 3? Be specific.
If 80% of a vehicle's cost are outside purchases, that means that the American vehicle makers are just assembling cars from parts made by others. The UAW wages being paid by the OEMs are a small fraction of the total cost of a new American made vehicle.
Retired autoworker (supplier plants) here. Even when the tier 1 and tier 2 plants are union, wages are well below UAW assembly plants.
Love the show. Would be nice to get younger people in the field on for fresh perspectives on what’s happening with under 40-50yo demo. Almost all the people on this show are in their 50s and 60s. Knowledgeable, but don’t have their finger on the pulse of the general public today. Thank you
Great video!!
great insight and perspective.
Great discussion, very enlightening. This explains some of the situation behind the Electric Vehicle Race to Affordability #EVR2A. I wonder how all the new EV companies rank aside of the legacy companies. Also, what if the supplier can license their technology to the OEM (thinking Exro Technologies - inverter tech)?
1. Reduce warranty costs. 2. Reduce vehicle parts by 75 percent, simplify. 3. Expense as much machinery costs as possible. 4. Purchase machinery from defunct plants for pennies on the dollar. 5. Make a desirable product with extreme functionality. 6. Make the product easily repairable. "... Canoo ..."
Why reduce parts when that is one of your greatest revenue/ profit centers? Aka maintenance revenue.
If the vehicle maker (i.e., the problem customer) is not treating its suppliers right, they are not going to go that extra mile for that vehicle maker under any circumstances.
Manufacturing requires a culture to a more integrated industry-wide systemic approach. How much has component supply and OEM manufacture moved offshore over the last twenty years simply because it was cheaper. With components making up 80% of the vehicle, over time in moving components supply offshore it means you are moving the industry offshore. The offshore industry is now knocking on the door with cheaper vehicles.
Pretty good insights
Not much talk about the main reason unions
Yet another closed-shop discussion about American auto manufacturing.........and thus fast becoming of little influence beyond.
China is where it's happening NOW.
Especially when so many auto parts are now being made in China and supplied to "US" vehicle makers.
I am sure Plante Moran surveyed Chinese parts suppliers...for legacy oem's...Chinese car companies may be very inaccessible!
All I hear are the death throes of dinosaurs...
All I heard oved and over was, Tesla does it better, cheaper, and at better quality than Legacy can possibly do it.
Are those big 3 are listening to these guy or just ignore them? If this culture in big 3 keep continue I predict all 3 will be gone in 10 years from now. Getting good supplers is one story. Another is if big 3 make suv's or cars why they are stiff like a stone? You go on raugher road you fill every small bump. If you go for a longer trip you can be sick from jumoing up and down.I think engenering and final decision is faling. They can make smooth vehicle, because I think they are stupid.