Overview
Automakers around the world strengthened their ties with suppliers over the past year, according to the latest Plante Moran Working Relations Index. The results mark the first time in the annual study's 26-year run that every automaker measured improved its standing with suppliers, a development that surprised the consulting firm's automotive team.
Survey findings
The index is based on 750 responses from large automotive suppliers and indicates that manufacturers boosted communication and relationship-building efforts, leading to higher trust scores. Toyota remained at the top of the ranking, increasing its margin to 409 points. Other manufacturers also advanced: General Motors reached 318 points, Ford climbed to 223 points, and Stellantis moved to 163 points.
Angela Johnson, principal in Plante Moran's automotive and mobility consulting practice, said the firm double- and triple-checked the results after seeing the across-the-board improvement. She pointed to increased visibility from supplier-facing executives as a factor in some companies' gains, specifically noting that Ford benefited from heightened engagement by its top supplier executive.
Context and supplier reaction
The survey respondents reported a greater sense of potential for long-term profitability among automakers, which suppliers connected to moves by automakers to write off money-losing electric vehicle programs. Many suppliers had invested heavily in EV efforts that failed to produce expected vehicle programs and now face efforts to recoup their losses amid limited replacement business from manufacturers.
Despite the improvements, suppliers remain cautious. Johnson said U.S. automakers like Ford must work to overcome decades of adversarial interactions that left a deep organizational memory. She observed that some executives in Detroit are striving to rebuild trust, but suppliers worry that the recent gains may not be permanent.
Work environment and communication
Respondents to the Plante Moran survey also credited return-to-office mandates with improving communication between supplier-facing workers and their supplier contacts. Detroit automakers have increased in-office expectations in the last year: Stellantis called most U.S. employees back five days a week, while Ford instituted a four-day in-office requirement for many salaried workers. Suppliers cited this greater in-person contact as a contributor to stronger working relationships.
Implications
The survey shows a notable shift in how automakers and suppliers interact, with enhanced communication and explicit executive engagement translating into higher trust scores. However, the legacy of profit-driven tactics that strained supplier ties still lingers in parts of the U.S. industry, and suppliers are watching whether recent improvements become sustained changes in behavior.
Data points referenced: Plante Moran Working Relations Index based on 750 supplier responses; Toyota 409 points; GM 318 points; Ford 223 points; Stellantis 163 points. Study is in its 26th year.