OEM-Supplier Relations Study Results Summary June 2010

Overview Sixth annual OEM-Supplier Relations Study Survey conducted May/June Respondents 2SupplierBusiness 2010

Survey Methodology Who we ask: SupplierBusiness has researched the automotive supply base for over a decade. In that time the company has gained an extensive global network of contacts. We select and suppliers, inviting them to participate in an online survey Why suppliers respond: The survey provides an excellent opportunity for suppliers to express their thoughts on their relationships with OEMs. The survey results are covered in Automotive News Europe and SupplierBusiness Analysis (a specialist magazine dedicated to automotive supply base issues). The results are will also be presented at the annual Automotive News Europe Congress. Respondents also receive a copy of the results Type of questions: The questions are designed to elicit qualitative answers. We are trying to find out how suppliers feel about the OEMs, which is subjective. We do not expect suppliers to perform any research before responding Supplier choice: At the start of the study we ask respondents to identify which OEMs they work with. Subsequent questions are filtered so that OEMs are ranked only by suppliers that have dealings with them. This applies to all questions except those asking to rate “attractiveness”. Suppliers can have a view on how attractive an OEM is, without having already worked with it 3SupplierBusiness 2010

Which carmakers are most attractive to work with? SupplierBusiness 20104

Which carmakers are most attractive to work with? Japanese and premium European automakers remain the most attractive Toyota slips from first to fifth place BMW, which was becoming less attractive to suppliers last year, considered the most attractive Ford North America, the OEM which gained the most last year, rises from 13 th to 7 th position Suppliers still cautious of Chrysler, which trails in last place. However, its score improved on last year. GM Europe and North America made significant improvements compared to last year as well SupplierBusiness 20105

Which carmaker makes the highest demands to reduce price? SupplierBusiness 20106

Which carmaker makes the highest demands to reduce price? Ford North AmericaBMW SupplierBusiness 20107

Which carmaker makes the highest demands to reduce price? Volkswagen overtakes GM as the most demanding OEM with respect to price GM and Ford consistently becoming less demanding since Of those, Ford North America has improved the most in the opinion of suppliers BMW, which appeared to have adopted a more aggressive purchasing strategy in recent surveys has not become significantly more demanding this time. This probably explains, in part, the automaker’s return to the top of the attractiveness chart SupplierBusiness 20108

Which carmaker makes the highest demands to achieve high quality? SupplierBusiness 20109

Which carmaker makes the highest demands to achieve high quality? Audi, identified last year as an OEM becoming ever more demanding for quality, claims the top spot Toyota, top last year, significantly behind Honda and Audi Ford North America improves substantially in previous 12 months Hyundai/Kia has fallen substantially compared to last year SupplierBusiness

Which carmaker makes the highest demands for the best product technology? SupplierBusiness

How highly do you trust the commercial partnerships with the following carmakers? SupplierBusiness

How highly do you trust the commercial partnerships with the following carmakers? Suppliers most trust the Japanese and premium European OEMs, but are least trusting of GM Europe, GM North America and Chrysler However, GM and Chrysler are improving in the opinion of suppliers SupplierBusiness

How highly do you trust the commercial partnerships with the following carmakers? SupplierBusiness Chrysler Ford Europe Ford North America GM Europe GM North America Scoring System The possible answers were scored as follows: Very low: 0 Low: 1 Moderate: 2 High: 3 Very high: 4 An OEM’s overall rating is the mean average of all the responses

How good is the opportunity to make acceptable return on investments with the following carmakers? SupplierBusiness

Respondent Demographics Company HeadquartersCompany Size SupplierBusiness

Respondent Demographics Areas of business (multiple answers possible)Job function (multiple answers possible) SupplierBusiness