Delphi Group (China) FY2007-FY2008

Business Highlights

<Highlights by division>

Thermal Systems :

New compressor plant in Suzhou
In October 2007, Delphi announced that it would establish a new facility within the premises of Delphi Electronics (Suzhou) Co., Ltd. to make car air conditioning compressors. The new facility, which will have a a total building area of 30,000 square meters initially, can be expanded up to 92,000 square meters in line with the company's plan to increase production volume. The new plant will be capable of manufacturing 550,000 variable capacity compressors per year. Operations are scheduled to begin in July, 2008. 

Beijing Delphi Automotive Air Conditioning Systems Co., Ltd.
In December, 2007, Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd., Beijing Automotive Industry Holding Co., Ltd., and Beijing Guanghua Shiyuan Automotive Parts Co., Ltd. jointly established Beijing Delphi Automotive Air Conditioning Systems Co., Ltd. to manufacture air conditioning systems for automakers such as Beiqi Foton Motor, Beijing Benz, and Beijing Automotive Industry. Shanghai Delphi Automotive Air Conditioning Systems provided 51 percent of the needed capital, Beijing Automotive Industry Holding provided 40 percent, and Beijing Guanghua Shiyuan Automotive Parts provided the remaining 9 percent in the new entity. The initial annual production capacity will be around 200,000 systems.

Electrical/Electronic Architectures :

Delphi Packard Electric Systems Co., Ltd. Changchun Branch
Delphi Packard Electric Systems Co., Ltd.'s Changchun Branch was completed in October, 2007. The new plant is located on 22,000 square meters of land in the Changchun Economic and Technology Development Zone in Jilin Province. The new facility will manufacture and supply wire harnesses and wire harness modules to automakers. The Delphi Group plans to double the production capacity and revamp its production flow at this plant in the future. Transferring and expanding production will allow Delphi to improve support to global automakers operating in northeast China.

Delphi Packard Electric Systems Shanghai A5 Plant
- In December, 2007, Delphi Packard Electric Systems' new Shanghai A5 Plant launched operations. Prior to the production launch, it took the company eight months to complete construction and another one month to transfer all the production facilities and employees from its existing Yuanguo Plant in the Anting Automobile City. The new facility was built on 23,611 square meters of land, becoming Delphi's largest wire harness plant in terms of area in the Asia Pacific region. In the future, the plant is expected to have the capacity to make 1 million wire harnesses per year, an increase of 80 percent from the current level. The company plans to install additional equipment at the Yuanguo Plant, which will thereafter specialize in the production of connection systems.

Building new plant in Wuhu City, Anhui
- In February 2008, Delphi Packard Electric Systems Co., Ltd. launched the construction of a new facility to manufacture wire harnesses and cables in Wuhu City, Anhui Province. The total investment in this project is expected to reach 46 million dollars.

Launching operations at new plant in Wuhan
- In February 2008, Delphi commenced production at its new wire harness plant in Dunkou, Wuhan. The new facility took over production activities that had previously been conducted at Delphi's Guangzhou facility. The new plant is expected to generate sales of around 2 billion yuan this year by producing wire harnesses for use in three passenger vehicle models built by Dongfeng-Peugeot-Citroen Automobile; namely, the C-Triomphe, the Peugeot 206, and the Peugeot 307. 

Electronics & Safety :

Business with Chery Automobile
- In January 2007, Chery Automotive has awarded Delphi Corporation a contract to provide complete Occupant Protection Systems (OPS) and an integrated navigation system for several of Chery's platforms starting in 2009. Beginning in 2009, Delphi will supply all driver and passenger airbags, curtain airbags, side airbags, passenger seat occupant detection systems, airbag control units, side- and frontal-impact sensors, and seat-track position sensors on all vehicles that Chery is currently producing. Delphi also has plans to supply parking assistance systems with a back-guide monitor and integrated in-vehicle audio entertainment and navigations systems for some models Chery is going to develop in the future.

Beijing Delphi Automotive Safety Products
- In October 2007, Beijing Delphi Automotive Safety Products Co., Ltd. started commercial production in the Changping District, Beijing. The company was established jointly by the Delphi Group and Beijing Automotive Industry Holding Company Ltd. (BAIC) in August 2006. The new plant with a total floor area of 1,800 square meters began manufacturing seatbelts two months ago in order to cope with increasing demand from China and the Asia Pacific region.

Divesting door system subsidiary
- In June2008, Shanghai Delphi Automotive Door Systems Co., Ltd., a joint venture company created between Shanghai SIIC Transportation Electric Co., Ltd. (STEC) and Delphi of the U.S.A. to produce door systems, announced that it has adopted a new corporate name, Shanghai Inteva Automotive Door Systems Co., Ltd., with the Shanghai Municipal Industrial and Commercial Administration giving final approval. The name change is the inevitable result of Delphi's selling off the 60 percent share it had held in the joint-venture company to Inteva Products, LLC, which is a wholly owned subsidiary of the Renco Group.

Engine Management Systems :

New alternator production company
- In 2007, the Company established a new company to manufacture alternators in Changshu, Jiangsu Province. The new facility will be operated by Korea Delphi Automotive Systems, which is owned 50 percent by the Delphi Group and the remaining 50 percent by Korea-based companies such as Daewoo Auto & Technology Company (GMDAT). The Changshu plant will manufacture alternators mainly for Korean companies. The Group aims to expand supply to the Japanese car industry through this company. 

Non-core Products :

Saginaw Lingyun Drive Shaft (Wuhu) Co., Ltd. completes driveshaft plant
- In December 2006, Delphi and Hebei Lingyun Industrial Group Co., Ltd. jointly established Saginaw Lingyun Drive Shaft (Wuhu) Co., Ltd. with Delphi investing 60 percent and Hebei  Lingyun investing 40 percent of the capital. Its production facility was completed in May 2008 with a total investment of 60 million dollars. The new facility will manufacture drive systems, constant velocity joints (CVJs) and related parts for Chery Automobile Co., Ltd. Its annual production volume is expected to reach 700,000 CVJs by 2010.



Completing second phase of construction at Delphi (China) Technical Centre Co., Ltd., 
- In June 2008, Delphi completed the second phase of construction at Delphi (China) Technical Centre Co., Ltd., which has already started operating test laboratories and measuring equipment.This building will be used for research and inspection on powertrain systems, electronics & safety systems, and technologies related to product and service solutions, reinforcing the company's R&D activities. After the third phase of construction, which is scheduled to be completed by 2009, the company plans to more than double the number of its development staff from 600 (as of 2007) to 1,500.

Producing hybrid electric vehicle parts and systems
- Delphi announced in August 2008 that the company will start producing hybrid electric vehicle parts and systems in China in late 2009. Delphi will initially make DCAC inverters, DCDC converters, battery packs, controllers, and integrated systems for micro hybrid vehicles and mild hybrid vehicles at its Suzhou facility. It has already supplied demonstration systems to Chinese automakers. Delphi intends to manufacture also components designed for full-hybrid, plug-in hybrid, and electric vehicles in the future.

Developing onboard TV capable of receiving programs offered by China Mobile Multimedia Broadcasting (CMMB),
In November 2008, Delphi China Technical Center developed China's first onboard TV that is capable of receiving TV programs offered by China Mobile Multimedia Broadcasting (CMMB), which is the first broadcast of its kind in China. CMMB currently provides seven channels, including China Central Television (CCTV) 1, CCTV3, CCTV5, CCTV9, and a news channel. CMMB is the industry standard for mobile multi-media broadcasting, as authorized by the State Administration of Radio Film and Television.