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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: We won't be able to sell ICE cars in China by 2025

China's push to clean up the country's woeful air pollution levels could mean the end of the traditional internal combustion engine there. In an interview with WardsAuto, Keiji Ohtsu, Honda's chief technology strategy officer at the company's automobile R&D center, predicts a lineup only of models with electric assistance in the country within a decade. He also discusses the Japanese automaker's green car goals worldwide. Ohtsu foresees China adopting some of the strictest fuel economy standards in the world in the coming years. "In 2025, we don't expect to be able to sell conventional internal-combustion engines [there], meaning we will be selling mostly hybrids including plug-in types," he said to WardsAuto. China's push to clean up its air comes as major cities continue to struggle with massive levels of pollution. For example, Beijing recently banned half of the cars from the road due to dire levels of smog. To fight back, the government has pushed automakers to launch more plug-ins, and the strategy has shown some success. China's BYD has already become the world's largest producer of plug-in vehicles in 2015. Even outside of China, Honda intends to become a far greener automaker in the coming years. In the near term, the company expects 20 percent of its global volume could be hybrids by 2020. According to Ohtsu, as much as 80 percent of Japanese deliveries could have some form or electrification by that time, but the US would be closer to 20 percent. However, the company sees hybrids more as a stepping stone than as the future of motoring, and the mass adoption of hydrogen is the real goal. "We think that fuel-cell vehicles will come into the mainstream in 2030, along with battery-powered electric cars. We also feel that going forward hydrogen will be the best fuel alternative," Ohtsu said to WardsAuto. Honda's experimental FCEV (pictured above) already hints at the brand's future direction.

2014 Honda Accord V6 Touring

America's midsize sedan segment is one of the most crowded and fiercely competitive in the business. The Toyota Camry has long been our nation's best seller, while the Honda Accord has dutifully come in second place, like some sort of codependent Cal Naughton Jr. riding Ricky Bobby's back bumper.
There was that one year, 2001, when the Accord briefly broke the Camry's streak, marring what would today have been a 17-year-long run of best-selling car titles. The Accord pulled the opposite move in 2011, letting sales slip far enough to let not only the Toyota by, but the Nissan Altima and Ford Fusion, as well. Aside from those anomalies, the Camry and Accord have been first and second in this segment since before many of you readers could even drive.
It's 2014, and these frenemies have never before faced a threat to their world order as strong as today's class of family sedans. The aforementioned Altima and Fusion are perhaps the most capable challengers, but the Chevrolet Malibu, Hyundai Sonata, Kia Optima, Volkswagen Passat and Mazda6 are all capable of convincing new buyers to walk their way.