Toyota replaced by Honda to become suppliers’ favored customer

In accordance to an annual survey of relations amid vehicle producers and suppliers Toyota is no more a darling of North American car parts makers. A survey by Michigan based Planning Perspectives recommends that Toyota and Honda are putting nearly as much pressure on suppliers to lower prices as are the three Detroit carmakers. In survey’ history it’s the first time that Toyota has lost its spot as suppliers most favored consumer which is to be replaced by Honda. Chrysler, whose procurement section has been in turmoil as its conquest by Cerberus Capital in 2007, got the least score among the six big manufacturers.

Chrysler, which filed for Chapter 11 insolvency protection last month, has offered details to about 1,200 suppliers on how their outstanding bills will be settled. It plans to transfer the “awesome majority” of its supplier contracts to a novel company expected to come out from bankruptcy protection at the end of this week.

Relations in the industry have been strained by the droop in vehicle sales. Dozens of suppliers have filed for bankruptcy, including two sizeable ones – Mark IV Industries and Hayes-Lemmerz – in previous month.

Parts makers’ opinion of Toyota has turned down for two years in a row. John Henke, Planning Perspectives’ president, stated that the slump had exposed weaknesses stemming from the Japanese car producer’s quick expansion.Toyota took over General Motors last year as the world’s main and largest car manufacturer but reported a larger first-quarter loss than GM.
Mr.Henke stated that lot of suppliers reported dealing with younger employees who had little exposure to Toyota’s “incessant improvement” culture.