“The talks are robust,” he said. “But the reality is that costs are rising, and we need to find a way to make both sides whole.”
Robert Bosch maintained its No. 1 position on the latest edition of the list of top suppliers, with sales of $49.14 billion to automakers worldwide in 2021.
Similarly, Canadian supplier Magna International Inc. talked to car manufacturers about ways to find a better financial balance. Magna was ranked #4 on this year’s list, with $36.2 billion in sales to automakers around the world.
“We continue our conversations with customers at various levels almost daily,” said Swamy Kotagiri, CEO of Magna, during an interview with analysts in April.
He said talks between Magna, the largest North American auto supplier, and automakers have been “open and transparent” but also “hard” at times.
“Going forward, we will try to reflect the new economy in our primary markets in North America and Europe,” Kotagiri said. “For example, inflation has been stable and modest for a long time, but is now high. … We are looking at various schemes in the future to see how we can recover the increased costs.”
Despite the many challenges suppliers face, mergers, acquisitions and other deals continued at a steady pace as companies tried to prepare for a boom in electric vehicle production and continued advances in driver assistance technologies.
Perhaps most notable was Faurecia’s acquisition of a majority stake in Hella, which was announced in late 2021 and closed in 2022. Faurecia was in 8th place in the 2021 edition of the Automotive News list of top suppliers, while Hella was at number 41.
The combined company is now known as Forvia and made its debut on the 2022 list at number 7, with automakers’ revenue of $25.88 billion in 2021.
Other newcomers to the list include powertrain supplier Vitesco Technologies, a former unit of German supplier Continental, at number 26, and Freudenberg Group at number 47.
The five largest suppliers in the world were unchanged from 2020. Bosch was in first place, followed by Denso Corp. ($43.57 billion in worldwide sales to automakers), ZF Friedrichshafen ($39.3 billion), Magna and Aisin Corp. ($33.48 billion).
Continental, number 6 on the 2020 list, dropped to number 8 this year after the Vitesco Technologies spin-off. It sold $24.2 billion worth of parts to automakers in 2021.
German supplier BASF made it into the top 10 after finishing at number 13 in 2020 and selling $21.35 billion to automakers in 2021. Hyundai Mobis, meanwhile, rose from number 7 last year to number 6 this year.
American supplier Lear Corp. finished at number 10, down from number 9 last year, while French supplier Valeo fell out of the top 10.