Most of the time we hear reports that automotive suppliers are being squeezed to within an inch of solvency by automakers that continually demand reduced costs, the rising price of raw materials and the spiraling cost of healthcare. According to a study by A.T. Kearney of Southfield, MI, however, North American suppliers are performing better than their foreign counterparts. The study surveyed 69 international suppliers and also found that on average revenue growth in the sector has been higher than that of the automakers themselves. It can't be so bad when DaimlerChrysler announces that it's working to improve relations with its suppliers by rewarding the highest-performing ones with new secure contracts. Meanwhile, Toyota is also setting up a new department in Michigan to develop stronger ties with North American suppliers and assist those who score contracts in meeting Toyota's high standards. It seems that the suppliers who are complaining the most are working with either GM or Ford.


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