The PPI-sponsored Annual North American Automotive Tier 1 Supplier-OEM Working Relations Survey gathers information from Tier 1 production parts suppliers about their commercial and engineering interfacing activity experiences, and working relations with the major North American OEMs, including Chrysler Group, Ford, General Motors, Honda, Nissan, and Toyota. Information is gathered at the product level on a variety of topics including:

• Working Relation Index (WRI) that quantifies the supplier-OEM working relation;
• OEM price reduction demands and supplier price concession responses;
• Reasons why suppliers respond to each OEM’s price reduction demands as they do;
• Impact of the price reductions on the suppliers’ manner of conducting business with the OEM;
• Actions suppliers are taking to protect their profit margins; and
• Manner in which each OEM is treating its suppliers across a broad range of specific commercial and engineering activities.

Suppliers use this product group specific information and subsequent recommended strategies to determine:

1. if the manner in which OEM purchasing and engineering personnel are treating them is consistent with what other suppliers are experiencing;
2. if the price reduction demands placed on them by the OEM is consistent with what other suppliers are experiencing;
3. if their price concessions are consistent with other suppliers; and;
4. the most appropriate sales and financial strategies for specific product groups at each OEM

OEMs can use the information gathered in the survey to:

1. see how they compare with their competitors in a variety of working relationship areas; and
2. obtain insights into how they can develop more effective working relations with their suppliers.