Toyota North American senior VP Dennis Cuneo said at a recent conference in Detroit, Michigan that automakers must cooperate more with their parts suppliers. In his declaration, he noted that 10 of Toyota's 15 suppliers are currently in bankruptcy. Such situations point to automakers' price-oriented focus, demanding cuts even when supppliers are faced with rising material costs. Cuneo maintains that healthy supplier relations are in the best interest of everyone, as many different automakers use the same suppliers, and cultivating less adversarial relationships can cut costs down and prevent bankruptcies.

Suppliers, on the other hand, consider Toyota one of their best customers, who works closely with them to reduce prices on parts before they are built. Cuneo states that his company's approach is one of their chief advantages, and he said he was 'pleased' that Chrysler, Ford, and General Motors are trying similar approaches. Of course, GM's 'bid packages' disaster (here) probably isn't the only such fiasco lurking out there, foreign or domestic.

[Source: MarketWatch]

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