Watch your rearview mirror, Robert Bosch. The big supplier behind you is preparing to pass. Nearly six years ago, Hiromu Okabe became president of what was then Nippondenso Corp. He charged into his new position with an aggressive growth plan firmly in hand. It was called Denso Vision 2005,
"I started by changing the corporate name to Denso, which reflected our new vision to be a global company," Okabe recalls. "Then we set the sales target for 2005--2.7 trillion Yen ($27 billion, at a [yen]l00/dollar exchange rate)."
Okabe says Denso is on track to hit its target. Sales for the fiscal year ending March 2001 were [yen]2.01 billion, or $16.25 billion. Only Robert Bosch GmbH, Visteon Corp. and Delphi Automotive Systems Corp. are larger. Okabe believes his company will pass Bosch as the world's number-three auto supplier in the process.
The Vision 2005 strategy is to extend Denso's business deeply into overseas markets, spearheaded by new product technologies and surrounded by the company's traditional quality. Over half of last year's consolidated sales were still in Japan. That means stepping further away from Toyota Motor Corp., of which Denso was a part until going independent in 1949. Toyota remains Denso's largest customer (much like the General Motors/Delphi and Ford Motor Co./Visteon relationships) and still holds roughly 25 percent of the company's stock. Ironically, Bosch also is a Denso shareholder, with five percent.
"World Number One Share"
Denso's four primary automotive product segments are Thermal systems (34.3 percent of FY01 sales); Powertrain Controls (20 percent); Electronic systems (17.6 percent) and Electric systems (12.4 percent). Small motors, telecommunications, environmental and industrial systems -- the company is a fast-growing supplier of small robots -- comprise most of the remainder. Achieving marketshare leadership in each segment, everywhere in the world, is the driver behind Okabe's plan, which he calls World Number One Share.
"Starters, alternators, fuel pumps, air conditioners, small electric motors, instrument clusters...we now have 14 products that we have world number-one share in," he claims. For 2005 we are trying to raise that number to 25." Currently, several Denso products hold number two or three marketshare status, including Navigation systems, oxygen sensors, variable-camshaft-timing systems and windshield wiper systems. The company will focus on those product areas in the push to be market leader.