“The conversations are robust,” he mentioned. “But the reality is costs are going up, and we have to find a way to make both parties whole.”
Robert Bosch retained its No. 1 place on the newest version of the highest suppliers record, with gross sales of $49.14 billion to automakers worldwide in 2021.
Likewise, Canadian provider Magna International Inc. has been speaking with automakers about methods to strike a greater stability financially. Magna ranked No. 4 on this 12 months’s record, with gross sales of $36.2 billion to automakers worldwide.
“We continue our discussions with customers at various levels almost on a daily basis,” Magna CEO Swamy Kotagiri mentioned throughout a name with analysts in April.
He mentioned talks between Magna, the most important North American auto provider, and automakers have been “open and transparent” however generally “tough.”
“Going forward, we will try to reflect the new economics in our primary markets in North America and Europe,” Kotagiri mentioned. “Inflation has been stable and modest for a long time, as an example, but now it’s high. … We are looking at different arrangements going forward to see how we can recover the increased costs.”
Despite the numerous challenges suppliers are dealing with, mergers, acquisitions and different offers continued at a gradual tempo as firms appeared to arrange for a growth in electrical car manufacturing and continued developments in driver-assistance applied sciences.
Perhaps essentially the most high-profile was Faurecia’s acquisition of a controlling stake in Hella, which was introduced in late 2021 and closed in 2022. Faurecia ranked No. 8 on the 2021 version of the Automotive News high suppliers record, whereas Hella ranked No. 41.
The mixed firm is now referred to as Forvia and made its debut on the 2022 record at No. 7, with gross sales of $25.88 billion to automakers in 2021.
Other newcomers to the record embody drivetrain provider Vitesco Technologies, a former unit of German provider Continental, at No. 26, and Freudenberg Group at No. 47.
The 5 largest suppliers on the planet have been unchanged from 2020. Bosch ranked first, adopted by Denso Corp. ($43.57 billion in international gross sales to automakers), ZF Friedrichshafen ($39.3 billion), Magna and Aisin Corp. ($33.48 billion).
Continental, No. 6 on the 2020 record, fell to No. 8 on this 12 months’s version following the spinoff of Vitesco Technologies. It offered $24.2 billion in components to automakers in 2021.
German provider BASF entered the highest 10 after ending No. 13 in 2020, having offered $21.35 billion to automakers in 2021. Hyundai Mobis, in the meantime, rose from No. 7 final 12 months to No. 6 this 12 months.
U.S. provider Lear Corp. completed No. 10, down from No. 9 final 12 months, whereas French provider Valeo fell out of the highest 10.