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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.

Honda pulling plug on slow-selling Insight hybrid

Insight hasn't amounted to even a tenth of Prius sales, and well over half of those sold were JDM.
It's been a rough ride for the Honda Insight, and now its journey appears to be at an end - word is that the five-door hybrid hatchback is going out of production.

Honda recalling 405K vehicles over airbag issue

Honda is in hot water due to an airbag glitch that is causing it to recall 405,400 vehicles. According to the campaign, the supplemental restraints might fire for no apparent reason. 342,000 of the affected vehicles are 2003 and 2004 Odyssey minivans, which gels with a National Highway Traffic Safety Administration investigation we reported on in June.
Joining the Odyssey in the recall is the Acura MDX, with 63,400 units covered from the 2003 model year. Unlike the van, though, the MDX's recall covers Japan and Australia, in addition to the US and Canada. Both vehicles are suffering from an airbag control unit that is prone to malfunction when exposed to electrical noise, a condition that can cause the airbags to deploy without warning. Although no crashes have been reported in such scenarios, there have been some injuries typical of airbag deployment - abrasions and such.
Honda will be mailing recall notices to owners near the end of October, asking them to bring their vehicles into the dealership for installation of an electrical noise filter. The repair will take about an hour and be free of charge. Scroll down for the official announcement from Honda.