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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.

Automakers' rush on aluminum may result in shortage

Aluminum is the new buzzword in the automotive industry. The latest Range Rover and Range Rover Sport both take advantage of the lightweight material to shave huge amounts of body fat (only it's called "aluminium" over there). Audi and Jaguar have been using the stuff for years in their A8 and XJ, respectively, and now, aluminum is going mainstream, arriving on the 2015 Ford F-150.
While we're excited to see aluminum make an impact outside the premium market, its widespread adoption apparently won't come without some problems, notably in terms of supply. "There isn't an automotive manufacturer that makes vehicles in North America that we're not talking to," Tom Boney, of Novelis, the largest global supplier of aluminum sheetmetal, told The Detroit News.
According to Boney, Ford's use of aluminum on such a large scale has forced auto manufacturers in "every boardroom" to reconsider their plans following the F-150's unveiling, for one simple reason: there's not exactly enough aluminum to go around, at least in the short term. The auto industry presently only accounts for six percent of the aluminum sheet produced, but as the material is adopted by more and more brands, that figure is expected to swell to 25 percent within the next six years.

This woman owns the first Ford Mustang sold in the US

As Ford celebrates the 50th anniversary of the Mustang with the unveiling of the all-new sixth-gen design, one Chicago women can lay claim to a piece of Mustang history. According to CBS Chicago, Gail Wise was the first person in the US to buy a Mustang in 1964, and she did so two days before the car was even unveiled to the public.
Wise, then a 22-year-old teacher, went into the Chicago Ford dealership wanting to buy a convertible, and a salesperson ushered her over to car covered by a tarp. That car was a baby blue Mustang convertible, which she still owns today - along with the documentation. After sitting for almost 30 years and undergoing a full restoration, the car now looks to be in original condition. The report says that this $3,400 purchase could be worth anywhere between $100,000 and $250,000. While this worked out well for Mrs. Wise, we wouldn't recommend anyone going into a dark, back room of a dealership hoping to get a jump on the purchase of a 2015 Mustang.
Scroll down to watch the video report.