Denso CEO Mitsur Matsushita: "There is much room for us to get into the Big 3 with new products, new technology."
Matsushita wants to add Big 3 business to complement its business with Toyota Motor Corp. and Honda Motor Co.
That's a stark contrast from its main U.S. competitors, Delphi Corp. and Visteon Corp. Both are trying to gain business from foreign-owned automakers.
Denso of Southfield, Mich., engineers and builds heating and cooling systems, electrical components and electronic controls for engines and transmissions. It employs 14,000 in North America. Parent company Denso Corp. is based in Japan.
Matsushita says Denso is on track to reach $5 billion in 2005 - about $500 million more than the last fiscal year. He wants to see the profit margin grow from 6 percent to 10 percent. Matsushita, who became CEO July 1, says he wants to get half of Denso's North American business from the Big 3. About 55 percent of its North American sales come from Toyota. Other big customers: 13 percent of sales come from DaimlerChrysler AG; 13 percent from Honda; 4 percent from General Motors; and 1 percent from Ford Motor Co.
To reach its goal, Denso must make a high-quality pitch - sometimes with higher prices - to automakers that are under severe cost pressure. But U.S. automakers also want to increase quality and reliability ratings, and Denso can help them get there, Matsushita says.
"In the past we could have taken advantage with quality products in North America, and that's where I would like to make a breakthrough with the Big 3," he says. " I believe there is much room for us to get into the Big 3 with new products, new technology."