The WRI Study 2024: Toyota's Surge, Ford's Decline

This episode is sponsored by Lockton, click here to learn more Watch the full video on YouTube - click hereIn this episode of the Automotive Leaders Podcast, host Jan Griffiths dives into the findings of the 24th Annual North American Automotive OEM and Supplier Working Relations Index (WRI) with guests Dave Andrea of Plante Moran, who led the study, and Sig Huber, Chief Commercial Officer for ELM Analytics.Dave starts by giving a macro-level overview of the industry's recent challenges, from electrification and new market competitors to supply chain disruptions and cost inflation. Despite these hurdles, Toyota, Nissan, Honda, and General Motors have emerged as top performers in the WRI. Toyota, in particular, saw another significant 30-point increase, reflecting their strong culture of continuous improvement and respect for people, known as The Toyota Way.They discuss General Motors, which has shown steady improvement despite leadership changes. Dave credits the company’s progress to the consistent focus on supplier relations by successive Vice Presidents of Purchasing. Sig emphasizes that GM's efforts under leaders like Steve Kiefer have embedded supplier relationship management deeply into the company’s culture.Jan and Dave then address the decline in Ford’s ratings, attributing it to organizational challenges and a more command-and-control purchasing style. Sig warns that Ford’s recent UAW negotiations and slower-than-expected EV adoption rates add to their struggles.On a brighter note, Stellantis shows signs of improvement under Marlo Vitous’s leadership despite a rocky past with supplier relations. However, Jan questions how much Stellantis's top executives value the WRI.In their closing comments, Dave and Sig reflect on the industry's future and the need for change. Dave emphasizes adapting business practices to navigate uncertain technology trends and regulatory issues. Sig highlights the industry's resilience, stressing that collaboration and trust with suppliers are crucial for overcoming challenges.Themes discussed in this episode:Understanding the significance of the Automotive OEM-Supplier Working Relations Index (WRI) Study as a tool for assessing industry performance and supplier relationsAddressing electrification, supply chain disruptions, and cost inflation and their impact on OEM-supplier relationshipAnalyzing the cultural and organizational elements that contribute to Toyota's enduring success, including continuous improvement, respect for people, and long-term relationship-buildingThe influence of leadership changes, such as Vice Presidents of Purchasing, on supplier relations and organizational performanceFord's decline in WRI scores and the organizational issues contributing to challenges in supplier relations and performanceThe role of effective communication in fostering strong relationships between OEMs and suppliers.The importance of trust and collaboration between OEMs and suppliers in navigating future challenges.Featured guest: Dave AndreaWhat he does: Dave Andrea leads the