1. Supplier Relations Summary of OEM-Supplier Relationship Survey Barcelona 6 th May 2005 Automotive News Europe/SupplierBusiness.com

2. Supplier Relations Three key questions  How do suppliers see their car maker partners?  Who do they want to work with and why?  What does that mean for the different car makers? OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

3. Pricing Ford is placing greatest emphasis on price of parts – Honda, BMW and Toyota the least OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com Pressure to reduce prices

4. Quality BMW and Toyota are the most demanding on quality, Fiat and SEAT the least OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

5. Technology German luxury makes emphasise product technology heavily – Fiat and GM Europe less so OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

6. Which carmaker is preferred as customer? (1) Toyota and BMW – and not Ford, Fiat or General Motors OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

7. Which carmaker is preferred as customer? (2) Toyota, BMW, Mercedes-Benz OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

8. Why? Difficult to make money with General Motors, Ford or Fiat – while BMW and Toyota offer acceptable returns OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

9. Why is it difficult to make money? Unpopular carmakers do not reward cost saving ideas OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

10. Why is it difficult to make money? Their adversarial contract negotiations are an extra cost OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

11. Why is it difficult to make money? They do not support suppliers to overcome challenges OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

12. Why is it difficult to make money? They do not offer suppliers healthy, predictable volumes OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

13. Suppliers do not feel respected Some car makers are not winning supplier support OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

14. Suppliers do not have confidence in these carmakers Suppliers see greater danger of their products and innovations being copied OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

15. Implications for OEMs Suppliers can shift their customer base OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com

16. Methodology Survey undertaken in March and April Results cover 15 major car maker brands Responses from 84 suppliers in Europe Full results available from SupplierBusiness.com shortly as special supplement Contact colin.whitbread@supplierbusiness.com OEM-Supplier Relationship Survey 2005 Automotive News Europe/SupplierBusiness.com