Detroit Three, Supplier Relations At Five Year Low

Implications: As the U.S. auto industry continues to deteriorate, automakers and suppliers aren't getting along as well as they used to.

Analysis: Relations between the Detroit Three in the U.S. and their component suppliers have fallen to a five year low, as soaring raw materials prices heightened tensions and pressure on automakers.

A survey of parts suppliers shows that trust between suppliers and automakers is eroding, in part because automakers are showing less concern about suppliers profitability.

Japan's biggest automakers outscored the domestics, as they have in past years. Toyota Motor Corp. maintained its lead, even as its scores dropped. Suppliers said they felt more pressure from Toyota to cut prices.

But there were big changes in each group, with Chrysler LLC scoring the lowest among the top six automakers while Ford Motor Co. was the top rated U.S. automaker after gaining in the key area of supplier trust.
 
As mentioned earlier, Toyota retained the No. 1 spot after sustaining the biggest year-over-year drop in the study's eight year history. Honda Motor Co. came in second, while Nissan Motor Co.'s ratings fell sharply.

Ford was the only automaker whose scores improved. General Motors ratings slipped but have improved over prior years.

Coming in last is Chrysler LLC, a company that has been involved in high-profile legal disputes with Plastech Engineered Products Inc. and most recently Dana Holding Corp. In June, the company notified more than 2000 suppliers that it would delay its payments to them by 15 days.