Toyota, Ford, Gm, and Volkswagen -- Some Differing Opinions About Working With Suppliers
A) Summarize the case and outline all of the issues
The crux of the case pits how four of the major automobile manufacturers differ in their operations about working with suppliers and their definitions of what constitutes competitive, as opposed to standardized automotive parts between manufactures. Some automakers see their suppliers as partners, such as Toyota. Others see suppliers as mere means to an end and ways of maximizing the value chain of production. GM and Ford tend to see suppliers as part of the mass production process and thus believe suppliers should be used to create components as cheaply, efficiently, and with as great an alacrity as possible, loyalty aside.
In contrast, Toyota sees its suppliers as partners. The ideals of this Japanese company also reflect why Toyota is also much more concerned about the definition of competitive components within cars. For instance, in negotiating a European agreement to standardize parts, Volkswagen believes many components within cars can be standardized without hurting competitiveness between different suppliers, while Toyota disagrees. Toyota considers a wider range of parts competitive or special including the design of the steering wheels and in some cases even wire connectors, and hopes to compete on styling and packaging of vehicles alone. Toyota...
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