TOKYO -- Emissions and ride-control supplier Tenneco Inc., which is owed $14.84 million by bankrupt General Motors, plans to diversify with Japanese customers and commercial trucks.
Tenneco has the long-term goal of achieving 30 percent of global sales from Japanese automakers. And it forecasts that commercial vehicle sales could account for 30 percent of total revenues by 2013, Tennecos Japan chief Jeff Jarrell said here today.
Balance is an absolute key to our past success and our success going forward, Jarrell said. The market meltdown and GMs Chapter 11 filing only underline the need to diversify, he added.
In Tennecos case, expanding business with Japanese automakers is a top priority.
Sales to them currently account for only 10 percent of Tennecos global revenue, and Toyota Motor Corp. is the only Japanese automaker on its top 10 customer list, at No. 5.
Yet about 45 percent of Tennecos new business with Japanese automakers is in the fast growing automotive markets of Brazil, India, China and Thailand.
That helps Tenneco spread risk away from the devastated North American market.
At the same time, Tenneco plans to branch into diesel technology for commercial vehicles and off-road vehicles such as earth movers and locomotives.
Jarrell didnt name customers. But the company expects its first commercial vehicle revenue later this year in the Asia-Pacific region.
It expects sales of such exhaust technologies as diesel oxidation catalysts and particulate filters to grow with stricter commercial vehicle emissions regulations.