JAPAN: Denso reports doing more business with US Big 3
According to a Nikkei report, the US Big 3 carmakers - Ford, GM and DaimlerChrysler - are becoming increasingly significant customers for Denso.
The report says that for the current year to March 2003, sales to the Big 3 are expected to comprise a record high percentage of Denso's consolidated earnings, exceeding the previous record high of 10.7% set in fiscal 1998.
The article adds that Denso is the biggest global maker of air conditioning units for vehicles and is receiving more orders from carmakers shifting to outside procurement. This year, Denso began supplying air conditioners to GM for pickup trucks.
Nikkei adds that GM accounted for 2.3% of Denso's consolidated sales last fiscal year, and Denso expects that percentage to rise to around 2.5% this year. It anticipates that business with Ford will account for somewhere above 2% of sales and business with DaimlerChrysler to remain at the 5% level.