TRAVERSE CITY, Mich. -- While other suppliers are struggling in North America, Denso expects double-digit growth over the next five years.
We expect 10 percent growth every year over the next five years, said Matt Matsushita, president of Denso International America Inc., during an interview at the Management Briefing Seminars. Denso America had revenues of about $5 billion in the fiscal year ended March 31.
Toyota Motor Corp. accounts for about 40 percent of Denso Americas business. The Big 3 account for another 30 percent. The rest is spread among other Japanese automakers, heavy-duty truck makers and European-based carmakers.
Denso sells to Hyundai Motor Co. in Korea, but not yet to Hyundais plant in Montgomery, Ala. Sooner or later, in three to five years, Hyundai will expand their localization, creating an opportunity for Denso, Matsushita said.
Thermal products, such as radiators and heating systems, account for about 35 percent of Densos North American sales. Over the next five years, though, powertrain-related products, navigation systems and safety products will lead the companys growth, Matsushita said.
Densos powertrain products include fuel injectors, integrated air-fuel modules and coils. Thats an area we havent penetrated enough, Matsushita said. We have system capabilities. We know the system, and were strong at the components level.
He also expects diesel engines to gain in popularity for light trucks, including SUVs. He said that probably will begin on a limited scale between three and five years from now.
Sales of navigation systems definitely will take off within three years in North America, he said. It wont be driven only by Japanese makers, who have extensive experience with navigation systems in Japan. Matsushita said Denso has pretty good penetration into the Big 3, as well.
Densos parent, Denso Corp. of Kariya, Japan, is ranked No. 4on the Automotive News list of top 100 global OEM parts suppliers. Denso is a member of the Toyota Group.
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