A Deep Dive Into The GM Supply Chain

AP GM Whitacre

As margin pressure plagues General Motors, sending shares down 7% this morning, one of the world’s largest automakers has no choice but to look to input price savings to bolster operating income.

For the company’s more than 400 suppliers, that can mean a tremendous impact on net sales.

An analysis of company annual filings dating back to the start of the year made apparent how important a client GM is for its sourcing partners.

Companies like Delphi, which is now pending a list on the New York Stock Exchange, have relationship’s that generate close to $3 billion a year. And for others, GM represents more than a 25% of sales.

Gentex Corporation

Ticker: GNTX

Company Sales: $816 million (FY 10)

Sales to GM: $122 million

GM Share of Revenue: 15%

Gentex manufactures review dimming mirrors and back-up camera systems that are used on vehicles like the Cadillac CTS and Escalade, as well as other Buick, Cadillac, Chevrolet, Daewoo, GMC, and Opel models.

Source: Company Filings via Bloomberg

Cooper-Standard Holding

Ticker: COSH

Company Sales: $2.4 billion (FY 10)

Sales to GM: $386 million

GM Share of Revenue: 16%

Cooper-Standard Holding specialises in fluid handling systems, body sealants and noise, vibration and harness control systems. The company employs more than 20,000 people in 18 countries

Source: Company Filings via Bloomberg

Methode Electronics

Ticker: MEI

Company Sales: $428 million (FY 11)

Sales to GM: $75 million

GM Share of Revenue: 18%

Methode produces IT systems which can be used in automobiles for voice and data communication, as well as touch interfaces for GPS and electronic consoles.

Source: Company Filings via Bloomberg

Tenneco Inc.

Ticker: 10

Company Sales: $5.9 billion (FY 10)

Sales to GM: $1.1 billion

GM Share of Revenue: 19%

Tenneco designs emission controls for automobiles, as well as struts, shock absorbers, and exhaust systems. Sales to Ford and Volkswagen accounted for 13% and 8% of sales, respectively.

Source: Company Filings via Bloomberg

Lear Corporation

Ticker: LEA

Company Sales: $12.0 billion (FY 10)

Sales to GM: $2.5 billion

GM Share of Revenue: 21%

Lear Corporation constructs seats for a auto manufacturers like GM. Lear also designs audio, wireless and electronic systems for light vehicles.

Source: Company Filings via Bloomberg

Remy International

Ticker: RMYI

Company Sales: $1.1 billion (FY 10)

Sales to GM: $254 million

GM Share of Revenue: 23%

Remy International manufactures alternators, starters and hybrid motors for auto companies, including GM.

Source: Company Filings via Bloomberg

Strattec Security Corporation

Ticker: STRT

Company Sales: $260 million (FY 11)

Sales to GM: $64 million

GM Share of Revenue: 24%

Strattec designs and manufactures electronic locking systems for GM and other auto manufacturers. The company also makes power sliding doors and door handles.

Source: Company Filings via Bloomberg

Superior Industries International

Ticker: SUP

Company Sales: $719 million (FY 10)

Sales to GM: $237 million

GM Share of Revenue: 32%

Superior Industries International designs auto parts and accessories that are sold to both OEMs and dealers for the consumer aftermarket industry.

Source: Company Filings via Bloomberg

P.A.M. Transport

Ticker: PTSI

Company Sales: $332 million (FY 10)

Sales to GM: $113 million

GM Share of Revenue: 34%

P.A.M. Transport ships commodities and goods for GM around the country on its 1,768 trucks and 4,632 trailers. The company also transports supplies to and from factories for a number of manufacturers.

Source: Company Filings via Bloomberg

American Axle and Manufacturing Holdings

Ticker: AXL

Company Sales: $645 million (3Q11)

Sales to GM: $464 million

GM Share of Revenue: 72%

American Axle, like its name implies, produces axles, propeller shafts and chassis parts for SUVs and trucks. The company focuses on rear-axle and four-wheel drive trains. AXL also derives 9% of its revenue from the Chrysler Group off of the Dodge Ram pick-up.

Source: Company Filings via Bloomberg

A look at repairs in the auto industry

Built into many of these relationships are warranties, but that hasn't stunted the after-market repair industry.

Click here to see an awesome infographic of repair costs by state >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.