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PODCAST | Why OEM-Supplier Relationships Improved Despite Tariffs and EV Uncertainty

Automakers and suppliers are facing tariffs, EV uncertainty and continued supply chain disruption, but this year’s Working Relations Index from Plante Moran revealed an unexpected trend: all six major North American OEMs improved their supplier relationship scores for the first time in the study’s 26-year history.
“What we see in the comments is a quiet consensus growing that there’s a human on the other side of the negotiating table,” says Dr. Angela Johnson of Plante Moran.
According to Johnson, suppliers increasingly recognize that OEMs are trying to proactively manage overlapping crises even when they cannot fully control the outcome.
“OEMs are making efforts to truly help suppliers navigate uncertainty and disruption,” she says.
The report found particularly strong gains from Ford and Stellantis, while Toyota, Honda and General Motors continued longer-term upward trends.
Johnson says much of the improvement came from OEMs focusing on the areas they could directly control.
“They looked at behaviors. They looked at processes,” she says. “Are we communicating? Are we transparent? Are we trying to proactively address and put into place processes for tariffs?”
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Those efforts included improved supplier meetings, accessibility, buyer responsiveness and more proactive communication.
“You may not get the outcome you want,” Johnson says. “But you feel like they truly want you as a supplier to succeed.”
According to Johnson, that distinction significantly changes supplier perception even during difficult negotiations.
Johnson believes repeated disruptions since 2020 have also forced organizations to become more proactive.
“They become better at managing those [crises],” she says. “They know how to run their playbook.”
Still, she cautions that the industry remains under enormous pressure heading into the next year.
“I expect this coming year to be very difficult for the industry,” Johnson says.
Whether the gains continue, she says, will depend largely on whether OEMs maintain communication, transparency and engagement with suppliers moving forward.
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