Automotive Purchasing News Review 3 March 2014 - page 1

automotivepurchasing.com
News Review
3 March 2014
2013Daimler
SupplierAwards:
and thewinnersare...
Feb 28, 2014
In recognition of outstanding
performance in the past financial
year, Daimler AG honoured twelve
of its tier suppliers with the 2013
Daimler Supplier Awards. Around
450 guests from the supply
industry attended the sixth award
presentation at the Mercedes-
Benz Centre in Stuttgart, February
27, 2014.
The automaker bestows honours
once a year to what it considers
above-average performance with
the Daimler Supplier Awards. In
working with its direct suppliers,
Daimler follows its cooperation
model, the Daimler Supplier
Network. This model is based
on the principles of performance
and partnership. Performance is
measured in terms of quality, cost,
delivery reliability and innovative
strength.
Trust and open communication
The partnership between Daimler
and its suppliers is based on trust and
open communication. That includes
the observance of sustainable
business practices, which is intended
to create incentives for the entire
supplier base to steadily improve
in existing and new markets. As Dr.
Dieter Zetsche, Chairman of the
Board of Management of Daimler AG
and Head of Mercedes-Benz Cars,
stressed in his opening speech: "At
the same timewecelebrateawinning
team – the world’s best supplier
network. We thank our suppliers for
their loyalty and dedication."
Star line-up
The award, a trophy created
by the Daimler design unit, was
presented by members of the
Daimler Board of Management
and the heads of Procurement: Dr.
Dieter Zetsche, Dr. Klaus Zehender,
designated Member of the
Divisional Board of Mercedes-Benz
Cars responsible for Procurement
and Supplier Quality; Dr. Wolfgang
Bernhard, Member of the Board
of Management and Head of
Daimler Trucks & Buses; Dr. Marcus
Schoenenberg, Head of Production
Materials Procurement Commercial
Vehicles; Wilfried Porth, Member
of the Board of Management,
Human Resources and Director
of Labor Relations & Mercedes-
Benz Vans; and Wendelin Wolbert,
Head of Non-Production Materials
Procurement.
Prof. Dr. Thomas Weber, Member
of the Board of Management, Group
Research and Mercedes-Benz Cars
Development, showcased the
latest innovations at Daimler and
presented the "Special Award for
Innovation" for the touchpad in the
new C-Class.
"The
close
and
trustful
collaboration with suppliers and
service providers has been an
indispensable element of our
success for many years. So
it is important for us that our
suppliers adhere to comparable
social standards as we do," said
Wilfried Porth during the awards
presentation.
continued on page 3
Toyotatosoftenstanceontier
supplier pricecut demands
Feb 28, 2014
Toyota Motor Corp has confirmed
its plan to require suppliers to
lower prices less than usual in
negotiations for the first half of
fiscal 2014, using healthy profits
to help companies that stood by
it in leaner times. As Automotive
Purchasing editor Drew Hillier
reports, Toyota says it aims to
use the gentler price reduction to
strengthen the health of not only its
top tier, but also smaller companies
further down the supply chain.
Toyota Motor Corp is one of the
conspicuoussuccessstoriesofJapan's
radical efforts to revive its economy,
withprofits rebounding and its 60,000
workers in Japan hoping this year to
receive their first base wage rise in six
years.
To date, however, for many Tier
1 and 2 suppliers, the reflationary
economic policies of Prime
Minister Shinzo Abe, dubbed
"Abenomics", have failed to trickle
down beyond the big carmakers,
which have by and large continued
to squeeze their networks of
suppliers. In Toyota’s case, whilst
it has been reluctant to comment
on details about pricing and cost
arrangements with its suppliers, the
company’s president, Akio Toyoda,
has acknowledged that "there are
expectations on Toyota" to pass
on the benefits of Abenomics to
its workers, but he has not clarified
how that would be done.
Small and midsize companies
Hitherto, Toyota has discussed
prices with its primary
s u p p l i e r s ,
numbering in the hundreds. Prices
for newly introduced parts are based
on such factors as costs for materials
and production. Price cuts are then
negotiated every six months, and
suppliers make up the difference by
making procurement or production
more efficient. This process covers
components ranging fromengine and
electronic parts to bolts and springs.
Toyota typically seeks a cut
of 1 percent to 1.5 percent. But
this fluctuates depending on
exchange rates, economic trends
and other factors. It climbed
to 3 percent in 2011 and 2012,
when the yen was strong and
the company faced parent-only
operating losses. However, the
automaker now says it will ask
for a cut of less than 1 percent
for the first half of the next fiscal
year. The yen has softened to the
100-105 range against the dollar,
making exports more profitable.
The move is aimed at helping
small and midsize companies
that do most of their business
in Japan and benefit less
from exports. Domestic
sales are expected to
slow in April with the
coming
consumption
tax hike, and even some
smaller businesses will
likely raise pay.
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