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This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. 2016 Final Pages DC - 20170619.qxp 6/19/2017 3:22 PM Page 3 > INSIDE: Top 100 Global Suppliers | PAGES 4-8 | Top 50 Europe Suppliers | PAGES 9-10 | Top 100 North American Suppliers | PAGES 11-15 | Suppliers ready for next gold rush David Sedgwick driving. “We need the partnerships.” and obstacle detection software — are [email protected] While Bosch is forming partnerships to booming already. lobal vehicle production may be gain access to key technologies, other com- That has been a windfall for Autoliv Inc., leveling off for parts suppliers, but panies are making acquisitions, and some of the world’s top airbag producer, and also a the fledgling market for self-dri- the deals have been blockbusters. major supplier of radar and cameras. Auto- G ving cars is already morphing into ZF Friedrichshafen — ranked No. 2 global- liv’s active safety electronics division report- their next gold rush. ly, with 2016 original-equipment sales of ed sales of $740 million last year, up 17 per- In 2020, automakers are expected to pro- $38.5 billion — roiled competitors in 2014 cent from 2015. The company expects sales duce 85.9 million vehicles equipped with col- with the $12.4 billion acquisition of TRW will continue to grow 15 percent annually lision avoidance systems, up from 10.8 mil- Automotive, a key producer of radar, cam- through 2020. lion last year, according to a forecast by Gart- eras and brakes. That’s a nice boost for Autoliv — which ner Research. Last year, chipmaker Qualcomm Inc. dis- ranks 22nd with sales of $10.1 billion — be- That’s eye-popping growth in an industry closed a $38 billion bid for NXP Semiconduc- cause it is occurring at a time when the airbag that was beginning to think the decade’s tors, the auto industry’s top supplier of semi- market has matured through saturation. roaring business cycle was nearing its end. conductors. And this year, Intel Corp. an- The key to Autoliv’s strategy is Zenuity, the And it explains why companies such as nounced the $15.3 billion takeover of Mobil- company’s newly formed joint venture with Bosch, Continental and Autoliv — the mega- eye N.V., the top producer of obstacle-detec- Volvo Car Corp. that will develop the deci- suppliers that dominate the Automotive News tion software. sion-making software that allows self-driving list of the Top 100 Global Suppliers — are pro- In all three cases, the bidders sought in- cars to plot their course. moting their ability to integrate the necessary Top-ranked supplier Bosch will spend $336 stant status in a key new technology. In this The partnership hopes to have its software array of sensors, computer chips and software. million over the next five years to develop market, patience is not a virtue. production-ready in 2019, which means a “Revenue is growing extremely fast,” Mike artificial intelligence for self-driving cars. Large suppliers also have scrambled to ac- customer could put it on the road in 2021. Ramsey, a Detroit-based Gartner analyst, quire smaller companies — often Silicon Val- Like Bosch, ZF, Delphi and others, Autoliv is said of the emergence of autonomous tech- ates annual sales of more than 1 billion euros ley startups — to fill gaps in their technology positioning itself as a company that can man- nologies. And the new trend favors mega- ($1.12 billion) for the sensors, software and ac- portfolios. age the complex task of integrating sensors, suppliers “who are best positioned to take tuators needed for collision avoidance and self- In 2015, Delphi Automotive (No. 12, with software, actuators and computer chips. advantage.” driving vehicles. $16.7 billion global sales) bought Ottomatika Which is why Zenuity is so important. The That’s because they enjoy economies of Now the company is upping the ante. In Inc., a Pittsburgh-based supplier of automat- goal is to design decision-making software scale, deep pockets for product develop- May, Bosch announced it will spend $336 ed-driving software. that can be used with any supplier’s sensors, ment, and have long-standing relationships million over the next five years to develop ar- The same year, Delphi invested in Quaner- actuators and control units — not just Auto- with automakers, Ramsey said. tificial intelligence for self-driving vehicles. gy, a startup developing solid-state lidar. And liv’s own hardware, said Johan Lofvenholm, “If they don’t deliver, the automakers can But even a behemoth such as Bosch is relying in 2017, Delphi partnered with two Israeli president of Autoliv Electronics. wring money out of them without putting on newly formed partnerships to fill gaps in its firms and a German company that specialize “Zenuity is a software-only venture,” them out of business,” Ramsey noted. “The menu of technologies, rather than rushing into in technology for cloud connectivity. Lofvenholm said. “We have to make a system automakers feel a lot of security dealing with the new world alone. In April, Bosch formed an Delphi is marketing itself as a company that is ‘hardware agnostic,’ so that we can the big suppliers.” alliance with Daimler AG to produce a fleet of that can integrate a customer’s sensors, soft- make sure we have maximum versatility for driverless taxis. The company also has an- ware and computer chips required for self- customers.” Economies of scale nounced plans to manufacture vehicle proces- driving cars. Other companies are taking the To be sure, Autoliv and other mega-suppli- Since r&d costs are considerable, the sors with Silicon Valley’s Nvidia, and it is work- same approach. ers have made a big bet on a technology that world’s largest mega-suppliers hope to make ing with digital map maker HERE to develop is a decade from mass-market acceptance. the new technologies competitive by exploit- crowd-sourced road maps. Agnostic software But that doesn’t bother Lofvenholm. ing economies of scale. The task of designing self-driving vehicles Fully automated vehicles won’t hit the “Autonomous driving is the logical next Bosch, the top-ranked company on Automo- “is too big for one company alone,” said Kay market until next decade, but sales of their step,” he said. “That’s how we are approach- tive News’ Top 100 Global Suppliers list, gener- Stepper, Bosch’s vice president of automated core technologies — such as radar, cameras ing this whole segment.” c 3 2016 Final Pages DC - 20170619.qxp 6/19/2017 3:23 PM Page 4 Top 100 global OEM parts suppliers – Ranked by sales of original equipment parts in 2016 Total global Total global OEM automotive OEM automotive Percent Percent parts sales parts sales North Percent Percent rest of 2016 (dollars in (dollars in America Europe Asia world 2015 rank Company Address Executive millions) 2016 millions) 2015 2016 2016 2016 2016 Products rank 1 Robert Bosch GmbH Postfach 106050 Volkmar Denner $46,500 e $44,825 e 19 46 33 2 Gasoline systems, diesel systems, electric systems; 1 (49) 711-811-0; bosch.com Stuttgart, D-70049, Germany chairman electrical drives, car multimedia, electronics & steering systems, battery technology 2 ZF Friedrichshafen AG Graf-von-Soden-Platz 1, Friedrichshafen, Stefan Sommer 38,465 f 29,518 f 27 48 22 3 Transmissions, chassis components & systems, steering systems, 5 (49) 7541-77-0; zf.com Baden-Wuerttemberg 88046, Germany CEO clutches, dampers & active & passive safety systems 3 Magna International Inc.* 337 Magna Drive Donald Walker 36,445 32,134 56 34 9 1 Body, chassis, exterior, seating, powertrain, electronic, vision, 3 (905) 726-2462; magna.com Aurora, Ontario L4G 7K1, Canada CEO & closure & roof systems & modules 4 Denso Corp. 1-1 Showo-cho Nobuaki Katoh 36,184 fe 36,030 fe 24 13 62 1 Thermal, powertrain control, electronic & electric systems, 2 (81) 566-25-5511; denso.com Kariya, Aichi 448-8661, Japan chairman small motors & telecommunications 5 Continental AG Vahrenwalder Strasse 9 Elmar Degenhart 32,680 31,480 26 50 21 3 Advanced driver assistance systems, electronic brakes, stability 4 (49) 511-938-01; conti-online.com Hanover, 30165, Germany CEO management systems, tires, foundation brakes, chassis systems, safety system electronics, telematics, powertrain electronics, injection systems, gasoline turbochargers, interior modules, instrumentation, technical elastomers 6 Aisin Seiki Co. 2-1 Asahi-Machi Kanshiro Toyoda 31,389 f 25,904 f 18 9 71 2 Body, brake & chassis systems, electronics & drivetrain & engine 7 (81) 566-24-8441; aisin.co.jp Kariya, Aichi 448-8650, Japan chairman components 7 Hyundai Mobis 203 Tehera-ro, Gangnam-gu Young Deuk Lim 27,207 26,262 20 12 65 3 Chassis, cockpit & front ends, brakes, steerings, suspensions, 6 (82) 2-2018-5114; mobis.co.kr Seoul, 06141, Korea CEO airbags & lamps automotive electronics 8 Faurecia 2 Rue Hennape Patrick Koller 20,700 22,967 29 50 17 4 Seating, emissions control technologies & interior systems 8 (33) 1-72-36-70-00; faurecia.com Nanterre, 92735, France CEO 9 Lear Corp.