Delphi is gaining ground fast in such non-traditional sectors as aftermarket sales and consumer electronics. But the supplier's biggest new growth area this year has been in commercial vehicles.
"We booked over $US2.5 billion of new commercial vehicle business during the first nine months of this year, a record for us," Delphi CEO JT Battenberg told SupplierBusiness.com.
"We booked about $1.1 billion in commercial vehicles last year, and $900 million in '01, so that's a very significant growth business," said Battenberg.
Delphi had already announced that it had won $1.5 billion in new business for commercial vehicles during the first six months of 2003, exceeding the company's target for the entire year.
Battenberg said this shows the company is successfully executing its strategy of building its non-passenger-vehicle business and diversifying its customer base.
Delphi's commercial vehicle wins included diesel, audio, safety, climate control, and electrical/electronic systems.
Asia-Pacific has been a strong area for Delphi's commercial vehicle business. Another area of growth has been non-GM aftermarket business.
Aftermarket, consumer products successes
In the aftermarket, Delphi has traditionally sold a large range of products to General Motors' Service Parts Organisation (SPO). Sales to the division in 2002 totalled $1.1 billion.
But the company has been building its independent aftermarket operation. It is supporting non-OE channels with replacement and accessory parts as well as diagnostic equipment such as the company's DS800 tools.
Delphi's Product & Service Solutions business - with about $800 million in non-GM SPO sales - has used the supplier's OE and electronic expertise to win share in such fast growing product categories as in car entertainment. It has also been a leader in the growth of reconditioning of electronic control units.
The company's acquisition of Grundig Car Intermedia in late November added more than $200 million in aftermarket revenue.
Delphi also expects more growth outside the automotive sector.
Delphi had sales of $556 million in its New Markets Division in 2002.
More non-GM revenue
The company has leveraged its technology to enter new fields, primarily consumer electronics area.
"We're selling our product in Wal-Mart, Crutchfield, Best Buy and Sears," says Battenberg.
Delphi makes GPS systems in consumer electronics and many audio products.
Delphi expects overall sales only slightly up in 2003 at $27.7 to $27.9 billion, and will show a loss this year due to exceptional charges of $396 million for restructuring older GM-dependent operations in its Automotive Holdings Group.
But Delphi is steadily moving away from its GM roots.
Battenberg says that in 2004 Delphi's "non-GM revenue is forecast to increase by 13% versus 2003" --- to account for 43% of total sales. Delphi expects profits of $280-380 million for the year.