Over the past two years, Ford supplier relations have largely remained the same – at least according to the annual Plante Moran North American Automotive OEM – Supplier Working Relations Index (WRI) Study. The Blue Oval ranked fourth among all automakers in 2021 and 2022, though its overall score did drop year-over-year. Now, the 2023 version of this same study has been released, and it reveals that Ford supplier relations took a major nose dive over the past year.
After scoring 242 points last year, Ford continued its decline in supplier relations with a score of 219 this year, which caused The Blue Oval to slip from fourth place down to fifth, behind Toyota (338), Honda (331), General Motors, (297), and Nissan (225), but ahead of Stellantis (145), though the latter company also posted the biggest gain of 17 points. Meanwhile, Ford’s 23 point decline was the largest year-over-year decrease as well.
The North American Automotive OEM-Tier 1 Supplier Working Relations Index Study polls salespeople from Tier 1 suppliers serving the top three Detroit and Japanese automakers. The study tracks supplier perceptions of working relations with their customers in which they rate them across the eight major purchasing areas broken down into 20 commodity areas. The results of the study are used to calculate the Working Relations Index (WRI), which can then be used to calculate the economic value of working relations based on a proprietary economic model.
“The industry continues to face unprecedented challenges in the shift to EVs that unless effectively addressed will only get worse,” said Dave Andrea, Principal in Plante Moran’s Strategy and Automotive & Mobility Consulting Practice, which conducts the annual Study. “During Covid, a ‘war room’ approach was adopted to quickly resolve critical issues. That approach is what auto manufacturers need to maintain during the transition to EV technologies. The industry needs that level of collaboration, even without the pressure of a crisis.”
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Comments
Ford treats its supply base like garbage. Pressure to reduce costs, unfair pricing cost targets, ridiculous amounts of paperwork and systems and non collaborative approach to issues.
Why is his story relevant? Obviously Ford hates their suppliers because they still aren’t delivering. I’m also hating Ford for failing to update my 12″ 2022 Sync 4 in my F350 -ever. No trailering navigation option, which they promised before I ordered 9 months in advance.
I still believe that Farley is leading Ford down a very bad path. Vendor relations, employee relations including salaried employees as well as hourly. The fish stinks from the head down.
It’s not just supplier complaints, but customers complaints. I’ve been trying to get a hold of a DM or Rm for the last week and a half nobody can lead me to them for I can talk to him about how I got swindled on my new Maverick. Didn’t have nothing that I ordered on it well maybe a few things but several things no. And the dealerships are going back to their old ways jacking up the price of the Mavericks $10,000 above MSRP. Customers are not getting what they want so they’re giving it back to the dealer saying they don’t want to buy it and the dealer selling it for $10,000 more than what the MSRP is. Hogwash.
I’ve been waiting for delivery of a finished bronco sport for over a month. Not happy