Delphi Group (China) Business Report FY2014
Business Highlights
Overview
-The Group has significantly grown its Chinese operations by establishing new companies and plants, especially in the area of thermal systems, electrical and electronic architectures, and electronics and safety systems. As the Group is working on increasing sales to major automakers in China, Delphi (China) Technical Center Co., Ltd. in Shanghai is developing products to satisfy local demand. Delphi Electronic and Safety System in China opened its second R&D center, Delphi Electronics (Suzhou) Technical Center, at the Suzhou Industrial Park in May 2014. It strengthened Delphi R&D system in China.
<Business overview by product>
| 1.Thermal systems | Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. This company is a joint venture between Delphi and Shanghai Automotive. It has the greatest share of the air conditioning market in China. The company established plants in Shenyang and Yantai in 2010 and 2011, respectively. |
| 2.Electrical and electronic architectures | Delphi Packard Electric Systems Co., Ltd. This company is one of the largest wire harness suppliers in China. It has a total of twelve manufacturing facilities located in Shanghai, Guangzhou, Changchun, Baicheng, Yantai, Wuhan and Wuhu. |
| 3.Electronics & safety systems | Delphi Electronics (Suzhou) Co., Ltd. This company manufactures cutting-edge car electronics and safety systems. The company’s products include in-vehicle entertainment systems and electronic control units. |
New Company
-Delphi Packard Electric Systems Co., Ltd. Tianjing Branch established in Tianjin Wuqing Development Zone in October 2014.
Recent Development
-Delphi announced that its powertrain plant in Shanghai began producing high-pressure fuel pumps for gasoline direct-injection engines, which marks the full-scale launch of their local production. The high-pressure fuel pumps achieve high accuracy, low noise, improved fuel economy and other advantages. Delphi plans to build an additional production line for these fuel pumps during the second half of 2014. (From news releases issued by multiple sources on September 17, 2014)
Strategic Alliance
-Delphi announced that the Company would collaborate with Baidu, China's major search engine company, on developing automotive infotainment technologies. Delphi intended to introduce Baidu's Carlife vehicle networking solutions with smartphone integration capability into its next generation in-vehicle infotainment (IVI) platform. Delphi's IVI platform utilizes the world's advanced vehicle networking solutions including CarPlay, Android Auto, and Mirror Link. The new collaboration with Baidu is expected to help Delphi offer seamless connectivity between the vehicle's infotainment system and a smartphone, which would provide users with smooth access to on-line content and services in China. (From a press release on January 29, 2015)
Outlook
-Delphi announced its sales targets for 2020. The Chinese operation expects to quadruple its sales in the country from the 2012 level of USD 2,300 million (CNY 36,600 million). Delphi’s China sales in 2013 reached USD 2,700 million, a rise of 18 percent from 2012. The Delphi Group also hopes to boost the percentage of its revenue generated in China from current 16 percent to 25 percent by 2020. Delphi China now has 28 plants and 3 technical centers, employing approximately 2,900 engineers. Over the next 18 months, it plans to add two new plants including a USD 100 million factory located in Yantai to produce diesel injection systems. (From news releases issued by multiple sources on April 29, 2014)
R&D Facility
<R&D Centers>
| Name | Operating Segment | Location | Year Established | Overview |
| Delphi (China) Technical Center | Delphi Electronic ans Safety | Waigaoqiao Free Trade Zone, Pudong, Shanghai | Dec. 2003 | -The first global technical center of Delphi in China. |
| Delphi Electronics (Suzhou) Technical Center | Delphi Electronic ans Safety | Suzhou Industrial Zone | May 2014 | -The secoond R&D Center in China of Delphi Electronic ans Safety. -Designing and developing auto infotainment systems, electronic control and vehicle safety relevant products and technologies. -The facility that covers 1,500 square meters can be extended up to 3,000 square meters in the future. Buildings for designing and testing were expected to cover 1,000 square meters. -As of 2014, there were around 200 engineers. |
Investment in China
-Delphi announced that it would construct a wire harness factory in Wuqing Development Area, Tianjin. The plant would have a total floor area of 22,000 square meters on 40,000 square meters of land. Investment in this project was expected to reach CNY 100 million. Wire harnesses produced at the new facility would include those for automobile telephones and in-vehicle infotainment systems. They would be supplied to automakers such as Mercedes-Benz and Great Wall Motor. (From news releases issued by multiple sources on May 19, 2014)