DETROIT — Electronics are creating new tensions in automaker-supplier relations.
The key problem, according to a new survey: Automakers are pressing their usual desire to whittle new-vehicle parts costs, while suppliers of advanced electronics are not eager to oblige.
That spells potential trouble ahead, said Dave Andrea, principal of Plante Moran, the consulting firm that produced the 2019 North American Automotive OEM-Supplier Working Relations Index Study. The industry is speeding into a future in which new and more advanced electronics — sometimes supplied by companies new to the auto world — will hold powerful sway.
"One of the biggest red flags was a downgrade in the area of electronics," Andrea told Automotive News about the annual report card on automotive purchasing and relationships. Plante Moran took over the study this year from industry researcher John Henke's firm, Planning Perspectives Inc.