Tough times in the auto industry have forced automakers and suppliers to work harder to improve their relationships.

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“The last few months have shown that working together toward a common objective is the only way to survive,” Hari Nair, managing director of Tenneco Automotive Europe told the Automotive News Europe Congress in Barcelona. He was one of four panelist to participate in a discussion that examined what the two sides are doing to work together more effectively.


Nair said a good example of the better collaboration between the two is the way they are dealing with the rising cost of steel. “We’re sharing the pain as an industry.”


Initially many automakers balked when suppliers tried to pass on some of their increased costs for steel.


Paul Stokes, Ford Motor Co.’s executive director of European purchasing operations, said that relations with suppliers are the “cornerstone” of the carmaker’s success. He stressed the two sides need an “open and transparent dialogue,” but said he seldom hears from suppliers when they have a problem.

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“We should all listen and we should all learn from each other.” Stokes said.


Jean-Philippe Collin, PSA/ Peugeot-Citroen vice president purchasing, said the French car maker is trying to react faster to suggestions from suppliers.


This is in response to a survey that showed parts makers felt PSA was ignoring them.


Tough but fair is the kind of treatment Delphi’s Volker Barth expects from automakers. The supplier’s president for Europe said that the ground rules for a good relationship between the two sides include mutual respect, clearly defined conditions for doing business and the assurance that the automaker wants the relationship to last.