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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.

JLR shares backstage 'No Time to Die' Range Rover Sport SVR carnage

James Bond's latest adventures will take him to Norway and Scotland, as seen in the trailer for the upcoming "No Time to Die." Somewhere along the way, the British spy encounters a pair of Range Rover Sport SVRs, the ultimate high-performance SUV from JLR's Special Vehicle Operations division in one of the movie's centerpiece car chases. Now, the company has given us a behind-the-scenes look at its filming, and the automotive carnage that ensues. The filmmakers wanted to take a Bond action sequence off-road, and chose the Range Rover Sport SVR as the the bad guys' pursuit vehicle. Armed with a JLR product placement deal (Bond drives a new Defender in another part of the movie) the henchmen had no qualms picking one of the most expensive things on the menu. Unfortunately, that also makes is a bit hard to watch when machines that start at $115,000 are totaled as they careen through the air or roll onto their roofs. The SVRs share a 5.0-liter supercharged V8 with the Jaguar F-Type SVR and are the most powerful vehicles in the Land Rover portfolio. With 575 horsepower and 516 pound-feet of torque on tap, translating to a 0-60 time of 4.3 seconds, they're the perfect weapon for chasing a super-spy down a dirt road. As for Bond himself, 007 makes his escape in a decades-old yellow Toyota Land Cruiser Prado. Specifically, it's a 90-series, a smaller version built from 1996 to 2002 that was never sold in the U.S. but remains popular in other parts of the world. The most powerful engine had just 190 horsepower from a 3.4 liter V6 shared with the similar-era 4Runner. Despite the power discrepancy, Bond manages to dispatch the Range Rovers in spectacular fashion. Wait, this is a Range Rover promo, right? "All the stunts are for real, there's nothing that's CGI'ed," said Neil Layton, the film's action vehicle coordinator. "So to make the cars more dramatic on the screen, we had to turn off a lot of safety feature aids that's on there." Interestingly, another non-JLR product shows up in the video as well. The camera car is a blacked out (to minimize reflection in other cars) Ford F-150 Raptor outfitted with a massive rooftop boom. "No Time to Die" is hits the screens on October 8. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade