Devaluation of the US dollar The weakening of automakers The decline of U.S. parts suppliers The Financial Times reported that U.S. auto suppliers are losing their global leading position because of the sharp depreciation of the U.S. dollar and the weakness of its largest customer U.S. automaker. According to the information released by automobile business communication website SupplierBusiness.com, the ranking of Delphi and Visteon among the global auto suppliers has dropped from the first and third place to the second and fourth place respectively according to the current exchange rate of the U.S. dollar. . Delphi and Visteon were originally parts supply subsidiaries of General Motors and Ford. Calculated on the last day of last year's exchange rate against the US dollar, Robert Bosch, a privately held German company, has become the world's largest supplier of automotive parts. The driving factor is not only the strengthening of the euro, but also European demand for diesel engines. Bosch is the leading supplier of this component. Based on the average exchange rate of the euro against the US dollar last year, Bosch’s auto parts sales amounted to 26.2 billion U.S. dollars, only slightly lower than Delphi’s 27.3 billion U.S. dollars. However, Bosch is expected to win a leading position this year, as Delphi plans to abandon nearly 10% of its sales, while Bosch expects sales to increase further. Thanks to the growth momentum of most Japanese automakers, Denso, Japan's largest automotive parts supplier, ranks third in the world. Japanese car manufacturers have been actively expanding in the U.S. market and at the same time have damaged the interests of U.S. car manufacturers. In key components, Japanese automakers often prefer domestically manufactured products. Even the overseas automakers, although they are tending to localize in parts procurement, have the preference to adopt domestic products. Denso benefits from the same benefits as other automotive suppliers. Edmund Chew of SupplierBusiness stated that a weaker US dollar is the main reason for the above-mentioned changes in the status of suppliers. However, this change also reflects the fact that Delphi and Visteon are currently experiencing difficulties in separating their fate from their parent company. Their parent companies are General Motors and Ford. Over the past year, Visteon has encountered particularly severe difficulties in pension and health care spending. The company had just received Ford’s bail-out before Christmas and was dropped to junk status by credit rating agency Moodys. Delphi has been successful in diversifying its customer base and not limited to the original parent company, but 61% of its sales still depend on General Motors.
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