Bosch Battles for No.1

If accounting and exchange rates hold to current levels, Robert Bosch GmbH probably will be ranked ahead of Delphi Corp. as the global industry's No.1 automotive supplier.

With the dollar at record lows to the euro, Bosch's euro revenues propel it up the ladder, while Delphi's dollar accounts are penalized.

The euro was worth $1.21 on Dec. 5, and applying that rate to Bosch's anticipated automotive revenues of E23.3 billion this year results in a figure of $28.3 billion. Meanwhile, Delphi expects to have 2003 automotive revenues of $27.3 billion.

The exchange rate at the end of the year will determine the winner, notes Sue Brown, editor of supplierbusiness.com, which analyzed the race in its Dec. 3 issue.

Bosch was the world's biggest automotive supplier until May 28, 1999, when Delphi was spun off from General Motors Corp. Delphi had 1998 sales of about $28 billion, and Bosch sales in 1998 were E16.3 billion ($19.8 billion at current rate of exchange).

Since then, Bosch sales have grown organically, largely from the boom in demand for common-rail diesels in Europe. Meanwhile, Delphi has been busy reorganizing through internal pruning and acquisitions in areas where it needed to be. Delphi bought the former Lucas Varity operations from TRW Inc., putting it into the diesel-injector business.

Today, Delphi is No.2 in injection systems behind Bosch and just ahead of Siemens-VDO Automotive. By 2005, he says, Delphi will be making 2.5 million injectors per year.

Delphi total sales in 2002 were $27.4 billion, including $500,000 in non-automotive. This year, sales will be about $27.8 billion. Bosch overall sales last year were E35 billion ($42.5 billion), of which E23.3 billion ($28.3 billion) was automotive.

Delphi says the ranking is not important, and Bosch declines to comment.

Morgan Stanley analyst Nicholas Hirth of London also dismisses the subject.

“I don't think it's very relevant,” he says. “They both have under performing areas and they both have some good technology. They are both probably going to trade places a few more times over the years.”