Delphi Group (China) Business Report FY ended Dec. 2016
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.
| 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 14 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
-In Jan. 2016，Delphi Packard Automotive Parts (Shanghai) Co., Ltd., the Company's subsidiary, was established in Shanghai.
-Delphi Packard Electric Systems Co., Ltd. Tianjing Branch established in Tianjin Wuqing Development Zone in October 2014.
Divestitures
-Delphi Automotive Systems Singapore Pte. Ltd. announced that it sold an additional 50% of shares in Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. to Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE). SAAE will pay USD 99 million for this deal, which is planned to be completed by April 30, 2016. Shanghai Delphi Automotive Air Conditioning Systems will be owned 87.5% by SAAE and 12.5% by Shanghai Automobile Air-conditioner Factory after the transaction. (From an announcement by the company on October 20, 2015)
-Delphi has entered into a definitive agreement to sell its reception systems business, which consists of automotive antennas and in-vehicle TV tuners, to Northeast Industries Group Corp., a Chinese automotive supplier. In July 2015, Delphi completed the transaction. After the transaction, reception system registed as FUBA Automotive Electronics Co.,Ltd. In Germany.(From a press release on August 24, 2015)
Strategic Alliance
-In January 2016, Delphi and AutoNavi agreed that they will collaborate on technology for autonomous vehicles by utilizing AutoNavi’s maps, navigation and location-based services. AutoNavi will gather, analyze, process, and distribute real-time information including road images, GPS data, and information on weather, accidents, traffic restrictions, and construction sites to offer technology to create cloud services for autonomous vehicles and high-precision maps (From news releases issued by multiple sources on January 8, 2016)
-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)
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. |
Investment in China
-In July 2015, Delphi Packard Electric Systems Co., Ltd. in the Delphi Group announced that it will establish an auto parts plant in the Jiangmen High-Tech Development Zone in Guangdong Province. The new plant will be constructed on a 46,000-squre-meter plot. It will have a factory, an office building, and a warehouse, covering a total of approximately 28,000 square meters of floor space. Investment in this project is expected to reach USD 20 million. The plant will produce products for GAC Fiat, Nissan, and other OEMs, starting in 2016. It is expected to generate USD 180 million in sales when full-scale production commences. (From news releases issued by multiple sources on July 10, 2015)
-Delphi Group (China), announced that it has signed an agreement with the Changshu New & Hi-tech Industrial Development Zone on establishing a car air conditioner plant in the development zone. Investment in this project is expected to reach USD 100 million. When the plant becomes fully operational, sales are forecast to reach CNY 3 billion. (From news releases issued by multiple sources on April 17, 2015)
-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)
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)
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)