Question

Posts should consist of short paragraphs (3-4 complete sentences minimum)

1. Can Honda still remain truly competitive by relying on others for technological components?
2. Do you believe that suppliers should be forced to absorb the full price impact of the tariffs if they have a contract with an automotive company? Explain your point of view.

Answer 1

Answer 1:

Yes, Honda can still remain competitive by relying on others for technological components. Honda can source the required technical components based on their requirements for their engines and vehicles. Honda will work with their supplier of technological components and will develop the design of the components that meets and exceeds their requirements. These components will be investigated, verified, validated and tested so that their performance can be cross checked to ensure that the desired performance from the Honda products are achieved with the help of technical components. Thus we can say that Honda can be still remains competitive by replying on others for technological components. Honda will develop their ways of validating and testing the technological components so that the desired performance can be ensured from their products and they can keep sourcing the technological components from their key suppliers. It is very difficult to design, develop and manufacture the technological components in house by any manufacturer. This calls for competency level and high investments. Thus in order to be competitive, sourcing of the technological component will be the right approach and Honda needs to find the ways and means for sourcing right technological components for their products.

Answer 2:

Yes, we do believe that suppliers should be forced to absorb the full price impact of the tariffs if they have a contract with an automotive company. This will help for the company to ensure that their suppliers are manufacturing with better quality and the products they are getting from their suppliers are with desired quality levels. This approach will drive the quality level in the products and it will help the suppliers to focus on the product quality levels. The supplier should be forced to absorb the full price impact of the tariffs, based on their contract with the automotive company. The contract will help the company to force the supplier for full price impact so that suppliers in future will take better corrective actions and will develop better processes and standards such that products defects will be minimized. Hence this approach will be helpful in long run for both the supplier and the company.