Survey shows supplier tension over EVs

Rising costs and unsteady demand for electric vehicles remain major sources of friction between automakers and their suppliers, according to a new Plante Moran survey examining supplier-automaker relationships.

“The No. 1 tension right now is around the electric vehicle product plans and product cycles,” said

Dave Andrea, principal in Plante Moran’s automotive and mobility consulting practice. “And that’s a combination of both timing of those (EV) programs, as well as the anticipated volumes of the programs. And that’s because that drives what the suppliers’ investment requirements are.”

The 2024 North American Automotive OEMSupplier Working Relations Index Study collected surveys from 696 tier one supplier executives from February to April. In its 24th year, the survey asks suppliers about their relationships with six major North American automakers across eight major purchasing areas.

Toyota Motor Co. again got the highest marks from suppliers. Of the Detroit Three, General Motors Co. achieved the best supplier approval, slotting in at third overall, below Honda Motor Co.

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Ford Motor Co.’s overall score dropped, and it remained in fifth place, behind Nissan Motor Corp. but above Stellantis NV, which has ranked at the bottom of the Plante Moran study’s results for several years.

All six automakers except Ford saw at least some improvement in their supplier relationships in this year’s index. Ford dropped 22 points and was down 70 points and two spots from 2016. A Ford spokesperson didn’t respond to a request for comment.

Andrea noted that Ford, which separated its EV business from its traditional operations two years ago, appeared especially stung in the survey by its recent EV challenges and how those challenges have trickled down to affect suppliers. Both Ford’s buyer metrics dropped, as did its business practice ratings.