Delphi Automotive PLC Business Report FY ended Dec. 2015
Business Highlights
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 15,165 | 15,499 | (2.2) | 1) |
| Operating Income | 1,723 | 1,758 | (2.0) | - |
Factors
1) Net Sales
-The Company's net sales for the fiscal year ended December 31, 2015 decreased by 2.2% from the previous year to USD 15,165 million. While sales volumes increased by 8% in 2015, unfavorable currency effects, primarily related to the euro, and contractual price reductions offset these gains. The Company's acquisitions and divestitures caused an increase in sales by USD 59 million.
Restructuring
Divestiture of remaining shares in Shanghai Delphi Automotive Air Conditioning Systems joint venture
-Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE) announced that it will acquire the remaining 50% of shares in Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. (SDAAC) from the Company. SAAE will pay USD 99 million for this deal, which is expected to be complete by April 30, 2016. SDAAC 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)
Divestiture of remaining shares in Korea Delphi Automotive System Corporation joint venture
-In the third quarter of 2015, the Company completed the sale of its interest in the Korea Delphi Automotive Systems Corporation joint venture for cash proceeds of USD 70 million.
Divestiture of reception systems business to Northeast Industries Group
-In July 2015, the Company completed the sale of its reception systems business, consisting of automotive antennas and in-vehicle TV tuners, to China-based Northeast Industries Group Corp, for approximately USD 25 million.
Divestiture of Thermal Systems business unit to Mahle
-In June 2015, the Company completed the divestiture of its Thermal Systems business unit to Mahle GmbH for cash considerations of approximately USD 660 million. The divestiture of the business unit allows the Company to reposition itself more towards high-growth product segments. (From a press release on July 1, 2015)
Acquisitions
-The Company announced that it has acquired HellermannTyton Group PLC, a British manufacturer of cable management solutions. The transaction is valued at GBP 1.07 billion. This transaction is expected to strengthen the Company's position in the automotive electrical architecture market. (From a press release on December 18, 2015)
-In November 2015, the Company acquired Control-Tec, LLC, a provider of telematics and cloud-hosted data analytics solutions for considerations totaling USD 124 million. Control-Tec provides a complete, customizable real-time data analytics solution which analyzes vehicle testing events.
-In July 2015, the Company acquired Ottomatika, Inc., an automated vehicle system software developer, for a total consideration of USD 32 million. The Company also invested USD 3 million in Quanergy, a company specializing in 3D LIDAR sensing technology for automated driving. These investments were made to strengthen the Company's work in ADAS applications as well as accelerate the development of automated vehicles.
-The Company's Powertrain Systems segment invested USD 20 million in Tula Technology Inc., an engine control software company. Tula Technology focuses primarily on software that provides fuel economy gains in cylinder deactivation technology.
R&D Expenditure |
(in billion USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Total | 1.5 | 1.3 | 1.3 |
-The Company expects to invest approximately USD 1.2 billion in research and development activities for the year ending December 31, 2016.
R&D Structure
-As of December 31, 2015, the Company has over 19,000 employees working in research and development.
-The Company has 14 major technical centers:
- North America: 4 facilities
- Europe, Middle East and Africa: 5 facilities
- Asia Pacific: 4 facilities
- South America: 1 facility
R&D Activities
-At CES 2016, the Company will display its updated automated vehicle project, unveiling new vehicle-to-everything (V2E) communication capabilities. The V2E system allows the automated vehicle to communicate with other vehicles, pedestrians, traffic lights, and can be used in blind corner situations to provide a complete view of the road. The V2E technology can also be utilized in ride sharing applications, to let others know the location of a vehicle so that they can request a ride. (From a press release on December 11, 2015)
-In March 2015, the Company's automated vehicle completed longest automated drive ever attempted in North America. Starting from San Francisco on March 22, the Company's automated vehicle travelled approximately 3,400 miles over nine days en route to New York. During the trip, the vehicle navigated through situations such as traffic circles and construction zones in various weather conditions. Approximately three terabytes of data was collected from the trip. The Company's automated vehicle leverages a full suite of technologies and features, including radar, vision, Advanced Drive Assistance Systems (ADAS), a multi-domain controller, and V2V/V2X. (From press releases on March 14, 2015 and April 2, 2015)
Technological Alliance
-The Company announced that it will collaborate with Baidu, China's major search engine company, on developing automotive infotainment technologies. The Company intends to introduce Baidu's Carlife vehicle networking solutions with smartphone integration capability into its next generation in-vehicle infotainment (IVI) platform. The new collaboration with Baidu is expected to help the Company offer seamless connectivity between the vehicle's infotainment system and a smartphone, which will provide users with smooth access to online content and services in China. (From a press release on January 29, 2015)
Capital Expenditure by Segment |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Electrical/Electronic Architecture | 353 | 326 | 293 |
| Powertrain Systems | 198 | 315 | 224 |
| Electronics and Safety | 105 | 89 | 64 |
| Eliminations and Other | 48 | 49 | 24 |
| Total | 704 | 779 | 605 |
Capital Expenditure by Geographic Area |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| North America | 247 | 214 | 183 |
| Europe, Middle East & Africa | 245 | 290 | 250 |
| Asia Pacific | 202 | 253 | 152 |
| South America | 10 | 22 | 20 |
| Total | 704 | 779 | 605 |
Investment outside U.S.
<China>
-On July 7, 2015, the Company's subsidiary, Delphi Packard Electric Systems Co., Ltd., announced that it will establish an auto parts plant in the Jiangmen High-Tech Development Zone in Guangdong Province, China. The new plant will be constructed on a 46,000-square-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 the plant is expected to reach USD 20 million. The plant will produce products for GAC Fiat, Nissan, and other OEMs starting in 2016 and 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)