Delphi Group (China) FY2005-FY2006

Business Highlights

The Group has been steadily expanding its production structure in China. It launched full-fledged production of car electronics products at its new plant in Suzhou in 2005. In the following year, it officially opened Delphi (China) Technical Centre Co., Ltd., and established four new plants. 

<Business overview by product>
1.Thermal systems Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. This is a joint venture between Delphi and Shanghai Automotive. It has the largest share of the air conditioning market in China. 
2.Electric and electronics architectures Delphi Packard Electric Systems Co., Ltd. This is one of the largest wire harness suppliers in China. It has a total of nine manufacturing facilities located within Shanghai, Guangzhou, Changchun, Baicheng, Yantai, and Wuhan. 
3.Electronics & safety systems Delphi Electronics (Suzhou) Co., Ltd. In 2005 this company launched operations at its new facility to manufacture cutting-edge car electronics products such as in-vehicle entertainment systems, electronic control units (ECUs), and safety systems. 

<Highlights by division>

Thermal Systems :

Acquiring Shanghai Delphi Automotive Air Conditioning Systems (SDAAC)
- In July 2006, the Company increased investment in its joint venture subsidiary, Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. (SDAAC) from 34% to 50%, and obtained control of the joint venture company. SDAAC was added to the Delphi Group's consolidated financial statements from the third quarter of 2006.  

Electrical/Electronic Architectures :

Delphi Parkard Electric Systems Co., Ltd. Yan Tai Branch
- In March 2006, Delphi Parkard Electric Systems Co., Ltd. Yan Tai Branch, which is the seventh production facility of Delphi窶冱 joint venture subsidiary, Delphi Packard Electric Systems Co., Ltd. started producing wire harnesses in Yantai , Shandong Province. Its products are delivered mainly to Shanghai GM Dong Yue Motors Co., Ltd, a subsidiary of Shanghai GM, the largest customer of the joint venture.

Non-core Products :

New steering system plant in Suzhou
- In September 2006, a new steering system production plant in Suzhou was completed, and its production started officially. The new plant is called Delphi Steering Systems Suzhou Co., Ltd. The steering production line at the existing Delphi Shanghai Dynamics and Propulsion Systems Co., Ltd. has been transferred to this new plant. With the launch of the new facilities, Delphi's production capacity of steering system parts has doubled.

Axle shaft production company with Hebei Lingyun Industry Group
- In December 2006, Saginaw Lingyun Driveshaft ( Wuhu ) Co., Ltd., a subsidiary for manufacturing axle shafts, was established in Wuhu, Anhui Province in joint venture with Hebei Lingyun Industry Group. The joint venture company, which is invested 60% by Delphi and 40% by Lingyun Industry Group, is the second joint venture following Delphi Saginaw Lingyun Drive Shaft Co., Ltd. established in 1995. Total investment amounts to 40 million dollars. Constructed on a 10,000 square meter-site, the company plans to employ about 500 people. After full-scale production gets underway in 2008, Delphi窶冱 production capacity of axle shafts in China is likely to be doubled. Products will be delivered to inland China and Asian Pacific regions.


R&D Facility
Delphi (China) Technical Centre Co., Ltd.

- Delphi's first global technical center in > China, Delphi (China) Technical Centre Co., Ltd., started its operations in April 2006. The technical center was established in December 2003 with the aim of elevating Delphi窶冱 research and development capabilities in China. Commercial operations were launched in 2006 after phase one of the construction project was completed in 2005.

Company Name Delphi (China) Technical Centre Co., Ltd.
Year Established Dec. 2003
 (Operations began in April 2006)

- Following the completion of the tryout operations at the new technical center in July 2005, engineers at facility developed car radios and DVD/radio multi audio systems (display in Chinese) for the Chinese market. Used as a standard equipment, these products were showcased at the 2006 Consumer Electronics Show held in Las Vegas.

- The Group intends to develop Delphi ( China ) Technical Centreas the largest technical center in the Asia Pacific area. Development focus will be initially set on electronic control units for automotive engines, safety systems, and multimedia products.