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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.

Global buyers prefer red, black Ford Mustangs

As sales of the new, 2015 Ford Mustang kick off across the globe, Ford is uncovering some interesting data about its long-lived muscle car, and some of the most interesting stats focus on the color palette. Not surprisingly, buyers have a thing for a red Mustang. Race Red, a bright, glossy color, is the number one shade among Mustang owners in both Europe and China with 20 percent of Europeans and 35 percent of Chinese owners opting for the shade. Ford's Ruby Red paint was the third most popular color among American consumers. That's because Mustang owners in the land of the free and home of the brave prefer a literal dark horse, opting for the glossy Black. Magnetic, a dark gray shade, was the second favorite among American Mustang owners. That's right, America's favorite color overall, white, didn't even crack the top three (although Oxford White hit number two in China). Black remained popular in other markets, as well. Absolute Black, a metallic shade, tied Race Red in Europe, appearing on 20 percent of vehicles. Just under 20 percent of Chinese buyers, meanwhile, opted for the same gloss black Americans preferred. Check out Ford's full press release for more detailed stats on how customers in three of the company's largest markets are designing their Mustangs. Related Video: MAR 12, 2015 | DEARBORN, MICH. EARLY DATA INDICATES UNIVERSAL PASSION FOR MUSTANG EXTENDS TO COLORS AS ICONIC PONY CAR GOES GLOBAL; RED, BLACK RULE As all-new Ford Mustang officially arrives in global markets for the first time, customers worldwide are opting for red and black as their top exterior color choices Approximately 1.1 million Mustangs configured online by pony car enthusiasts throughout Europe; more than 18,000 consumers in China signed up to take all-new Mustang for a test spin U.S. Mustang sales up 32 percent in February – making it the best-selling sports car in America DEARBORN, Mich., March 12, 2015 – Red and black clinch the top spots as the most popular exterior paint colors for the first global Mustang, according to initial consumer data. Mustang demand has been high, with the car reaching dealer lots in the United States late last year and China in early 2015. It's set to go on sale in Europe midyear, with nearly 1.1 million pony cars configured on Ford's European websites just a month after ordering banks opened.

Malcolm Gladwell reflects on engineering, recalls, and compromise

Journalist Malcolm Gladwell has made a career taking on big, complicated topics and humanizing them to make the unwieldy understandable. He has already done this in bestsellers like The Tipping Point and Outliers, and now he has brought the same approach to automotive recalls in a long piece for The New Yorker. The article titled The Engineer's Lament is framed around an interview with the former head of Ford's recall office about the famous Ford Pinto campaign where the position of the compact's fuel tank could cause it to explode in rear-end collisions. Plus, there are detours into Toyota's unintended acceleration cases and the General Motors ignition switch problem. While all the history is illuminating, the heart of the story comes from an examination at the thought process of engineers, and how their thinking differs from other professions. Gladwell comes off as sympathetic to auto engineers in this piece. While he admits that they often approach problems in a sterile way, the writer doesn't try point that out as a failing. It's merely a fact to be understood. The story itself is quite lengthy, but well worth a read if you have the time for an insiders view into how these recalls are assessed on the inside.