A new industrial order is emerging from the rubble of North America's automotive original equipment suppliers.
Five of the 30 largest companies on Automotive News' annual list of the top 150 North American suppliers are in Chapter 11 reorganization-an unprecedented number.
The companies enjoying the biggest growth are European and Japanese, and those that are shrinking tend to be American.
Nine of the 10 companies that suffered the biggest sales declines last year are based in the U.S.
And the two bull elephants among U.S. suppliers-Delphi Corp. and Visteon Corp.-are drastically shrinking.
Visteon has given back 23 unprofitable factories to Ford Motor Co., its former parent. Meanwhile, Delphi has indicated that it now considers 21 of 29 U.S. plants to be ``non-core''-that is, expendable.
Delphi and Visteon were ranked first and third based on 2005 North American sales. Both will drop sharply next year.
By closing or selling those operations, Delphi would shed at least $5.63 billion in sales, mostly in low-tech products such as spark plugs, compressors and air filters.
Another perennial top 10 stalwart-Lear Corp.-could shrink substantially, too. Lear is trying to unload its unprofitable interior-trim operation, and it's trying to hang on to its remaining Chrysler business after losing the contract to produce the Ram pickup's seats.
Dana Corp., Collins & Aikman Corp. and Federal-Mogul Corp. also are likely to emerge from Chapter 11 reorganization as smaller companies.
``The auto supply industry is in a shambles,'' billionaire investor Wilbur Ross said during a recent Detroit industry conference.
The leader of the new industrial order is Magna International Inc.
The giant Canadian parts maker ranked second, with OE sales of $12.8 billion, up 23.6 percent. Magna displaced Visteon as the No. 2 company and is poised to take over the top spot as Delphi shrinks.
Perhaps surprisingly, Magna is growing chiefly on the strength of its sales to the Big 3, not the imports.
The Aurora, Ontario, company supplies parts for a variety of Big 3 products, including the Chrysler 300, Ford Fusion and Explorer, Mercury Milan, and General Motors sport-utility vehicles and pickups. Magna President Mark Hogan credits growth last year to ``a big product-launch year in support of the Big 3.''
Magna-which makes interior and exterior components, large stampings, seats and electronics-owes some of its growth to acquisitions.
In 2004, the company acquired New Venture Gear Inc., a supplier of transfer cases and other drivetrain parts. Magna owns 80 percent of the joint venture.
Foreign suppliers-especially those that make electronic components-are faring well.
Robert Bosch Corp.-the German maker of brakes, fuel-injection systems, chassis systems and ``infotainment'' components-dropped one spot to No. 7. But sales grew. And Peter Marks, chief of Bosch's North American operations, predicts sales growth of 6 to 8 percent.
Marks said he'll achieve that target by boosting sales of safety and engine management systems and possibly by making some acquisitions.
Other German electronics suppliers with growth stories to tell are Continental A.G. and Siemens VDO Automotive Corp. Continental moved up from 16th to 14th place with sales of $3.1 billion in 2005. Continental-which manufactures tires, brakes and electronic chassis components-enjoyed healthy sales of crash-prevention systems that prevent spinouts and rollovers.
``We have picked up an increased share of electronic stability control and other technologies in the electronics and safety industry, in particular with GM and the Japanese OEMs,'' said William Kozyra, CEO of Continental's North American auto unit.
* * *
Companies on Automotive News' ranking of the Top 150 original equipment suppliers to North America that principally are rubber product makers:
14. Continental A.G., $3.1 billion
35. Michelin, $1.52 billion
38. Goodyear, $1.45 billion
45. Cooper-Standard Automotive, $1.24 billion
48. Toyoda Gosei North America Corp., $1.12 billion
52. Bridgestone Americas Holding Inc., $980 million
68. Tomkins P.L.C., $684 million
71. Freudenberg-NOK G.P., $660 million
92. Mark IV Automotive, $454 million
97. Hutchinson S.A., $434 million
113. GDX Automotive, $341 million
146. Trelleborg Automotive, $225 million
Companies on the list that have rubber operations but derive most of their sales from other goods:
1. Delphi Corp., $16 billion
6. Dana Corp., $5.43 billion
18. Collins & Aikman Corp., $2.8 billion
25. Metaldyne Corp., $1.8 billion
27. Federal-Mogul Corp., $1.77 billion
31. GKN Automotive Inc., $1.54 billion
36. Tenneco Inc., $1.51 billion
39. ZF Group NAO, $1.44 billion
58. TI Automotive Ltd., $880 million.
96. Illinois Tool Works Inc., $438 million
99. SKF Automotive Division, $423 million
109. Foamex Automotive Products Group, $359 million
126. Eagle-Picher Inc., $293 million