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Suppliers love Toyota and Honda: Why that matters to you

You might think that a survey of automotive suppliers and their relationship with OEMs is the automotive equivalent of nerd prom. In some ways that's what the North American Automotive OEM-Supplier Working Relations Index (WRI) is. The study, the 17th annual conducted by Planning Perspectives Inc., is based on input from 652 salespeople from 108 Tier One suppliers, or, PPI points out, 40 of the top 50 automotive suppliers in North America. Suppliers to General Motors, Ford, FCA, Toyota, Honda, and Nissan. But the results have consequences in terms of tens of millions of dollars for OEMs - and in the quality, technology, and cost of the next vehicle you buy. There are a couple of ways to look at the results of the WRI. One is, "So what else is new?" And the other is, "Damn! How did that happen?" The study looks at five relationship areas — OEM Supplier Relationship; OEM Communication; OEM Help; OEM Hindrance; Supplier Profit Opportunity — within six purchasing areas — Body-in-White; Chassis; Electrical/Electronics; Exterior; Interior; Powertrain. In the overall rankings, Toyota is on top for the 15 th time in 17 years, with a score of 328. Honda, the only company to best Toyota (in 2009 and 2010), comes in second, at 319. Those two companies, explains John Henke, president of PPI, have collaborative working arrangements with colleagues and suppliers alike built into the very fabric of their cultures. This, however, is not a situation where one can readily conclude it is about "Japanese companies," because the third company with headquarters on the island of Honshu, Nissan, came in dead last. This is the "How did that happen?" portion. The Nissan score of 203 puts it 125 points behind Toyota. There hasn't been a number that low since the then-Chrysler Corp. scored 187 in 2010, when the company was clawing its way out of the recession. Clearly, the suppliers don't feel particularly engaged by the buyers at Nissan. Henke explains that whether a company does well or not on the WRI is rather simple. All people do things based on what they're measured on. "If you're measured on taking 10% out of your annual buy, you immediately know how to do it. But if you're also measured on improving relations, suddenly there is a new dynamic as to what you can do to achieve both.

Should reflective paint earn automakers EPA credits?

No matter where you look around the world, governments are cracking down on vehicle emissions and aiming for higher fuel economy standards. Generally, automakers are pushing back against the increased regulation, and in the US, General Motors, Ford, and FCA US are looking for new compromises. The Big Three want to the EPA to grant them retroactive emissions credits for using tech that they claim reduces CO2 but not on the government agency's on-road testing. Among these technologies are things like reflective paint and glass, LED lights, ventilated seats, stop/start, and more efficient air conditioning compressors. Starting with the 2014 model year, the automakers can receive credits for a few grams per mile reductions on models with some of these solutions, according to Automotive News. However, the companies are also petitioning the EPA to make the credits apply to earlier vehicles with them, as well. The emissions advantages for systems like stop/start and less polluting AC refrigerants seem fairly obvious. For reflective paint and glass, the belief is that keeping a vehicle interior cooler should mean a lower need for air conditioning and therefore a decrease in CO2. Margo Oge, the former boss of the EPA's Office of Transportation Air Quality, told Automotive News these credits are part of the plan. "That's the whole point of what we tried to establish," she said. "We wanted companies to invest in and develop these technologies." The EPA wants vehicle emissions at the corporate average equivalent of 54.4 miles per gallon fuel economy by 2025, and so far that seems achievable. It will translate to less than 40 mpg on the EPA sticker. In a report last summer, the industry was about 10 grams per mile of CO2 better than the rules required, and that was solely based on 2012 model year vehicles. In an update for 2013, the companies were up to 12 grams per mile beyond targets. News Source: Automotive News - sub. req.Image Credit: Mark Humphrey / AP Photo Government/Legal Green Ford GM Emissions Fuel Efficiency FCA fca us

Detroit 3 small cars lay an egg in latest Consumer Reports reliability study

Consumer Reports has released its Annual Auto Reliability Survey and the results are, in a word, interesting. While we already covered the score-damaging effects of infotainment systems, there's another big angle to the data that's getting some attention - the utterly dismal scores of the Detroit Three's small car offerings.
The turbocharged Dodge Dart and Chevrolet Cruze, as well as the Ford Fiesta were their respective brands' lowest-scoring models, a stat that's made worse by the fact that the American automakers finished 25th, 21st and 23rd, respectively.
That's not acceptable for The Detroit Free Press' auto critic, Mark Phelan, who has penned a scathing critique of the D3's small car reliability scores, arguing that GM, Ford and Chrysler are "out of excuses."