Delphi Group (China) Business Report FY2012-FY2013

Business Highlights


-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.

<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.

Overview of Delphi China in 2012 

-The Company announced that its operating profit in 2012 rose 10.8 percent from 2011. Based on its plans to enhance production and development operations, the Company completed construction of three new plants in 2012, increasing the number of production facilities that the Company has in China to 26. These new factories consist of a wire harness plant in Chengdu, another wire harness facility in Chongqing, and an air conditioner plant in Yantai. Additionally, in November 2012, the Company began construction of a separate facility in Yantai to produce diesel engine management systems. This facility would be the Company's first plant in the Asia Pacific region that manufactures diesel engine management systems. The Company also received a number of awards from its customers in 2012. The Company received more than 40 awards from over 20 different automakers and engine manufacturers. (From news releases issued by multiple sources on February 1, 2013)


Overview of Delphi Packard

-In 2012, Delphi Packard Electric Systems Co., Ltd. had 8.1 billion yen in sales, an increase of 10 percent from the previous year. The company received 26 awards from major customers, including Shanghai GM, FAW-VW, Shanghai VW, Dongfeng Nissan, Shanghai-GM Wuling, and Brilliance Auto. (From a press release, February 10, 2013)


Supply agreement

-The Company will start mass-production of active safety systems for the FAW Hongqi H7 series. The new active safety system consists of an adaptive cruise control system, a forward collision warning system, an emergency automatic brake system, an automatic brake assist system, a lane departure warning system, a driver monitoring system, and an active night view assist system. The Company has conducted over 35,000 kilometers of test runs to ensure that the technology can operate under various road conditions and driving styles. According to the sales manager from the Asia Pacific Division of Delphi Electronic Safety, the Company is cooperating with a number of Chinese automakers to develop active safety systems. The Company hopes to supply these systems for various vehicle models by 2014. (From news releases issued by multiple sources on November 20, 2012)


New plant

-Delphi Automotive held a groundbreaking ceremony in Yantai, Shangdong Province for a new diesel engine management system production facility. Delphi is investing approximately USD 100 million (CNY 643 million) to construct and equip the facility. The new facility will produce components for high-precision diesel fuel injection systems. Production at the new facility is expected to begin in late 2013 and will be supported by an existing Company operation in Suzhou which will supply engine control modules. The new plant will be an expansion of the Company's manufacturing base in the Fushan district and will hire 500 employees in addition to the 2,800 employees already working in Yantai. The new plant will initially supply components to Great Wall Motor, Yuchai, and Shandong Laidong. Currently, China accounts for 5% of Delphi's global business in diesel engine management systems. Delphi plans to increase this figure to 30% in the future. (From press release on October 25, 2012)


-Delphi Packard Electric Systems Co., Ltd. held an opening ceremony for its plant in Chongqing, the company's second facility in western China. The new plant will produce wire harnesses for Changan Ford Mazda, Volvo and Jiangling Ford. The plant was constructed on 12,582 square meters of land and is expected to employ approximately 560 people. The company's plant in Chengdu, which was its first plant western China, started operations in September 2012. (From press release, October 12, 2012)


-Delphi Packard Electric Systems Co., Ltd., a subsidiary of the Company, held an opening ceremony for its new plant in the Wuhan Economic & Technological Development Zone. Investment in the new wire harness plant is approximately USD 55 million. The company already has a production facility operating in the district. The new plant will increase the company's capability to serve various customers in the Midwest region of China, including Dongfeng Peugeot-Citroen Automobile, Fiat, Mitsubishi Motors, and Nissan. (From news releases issued by multiple sources on March 19, 2012) 


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

-The Company's first global technical center in China, Delphi (China) Technical Centre Co., Ltd., was established in Shanghai in December 2003 with the aim of enhancing the Company's research and development capabilities in China.
Company Name Delphi (China) Technical Centre Co., Ltd.
Address Waigaoqiao Free Trade Zone, Pudong, Shanghai
Year Established Dec. 2003
Launch of operations April 2006

Collaboration with universities

-The Company has recently strengthened collaboration with local universities. Alliances include Delphi (China) Technical Centre's long-term partnership with Tongji University in the area of engine development. In the second half of 2012, Delphi Packard Electric Systems, the Asia Pacific Engineering Center, Shanghai University and the East China University of Science and Technology jointly held an engineering contest for college students based on the theme of production automation. (From news releases issued by multiple sources on February 1, 2013)

Investment Activities

Investment in China

-Delphi Automotive PLC announced that its newly-expanded Beijing gasoline engine management systems (EMS) facility is now fully operational. With more than 30,000 square meters of floor space, started in October 2011, the expansion project cost CNY 370 million. The new site provides integrated manufacturing and R&D capabilities, doubling Delphi's local capacity for gasoline engine management systems. Delphi's Beijing manufacturing operation will provide local Delphi customers with China IV/V and future emissions-compliant gasoline EMS and components, including multi-charge ignition coils, sensors, electronic throttle bodies, carbon canister, solenoid valves, fuel delivery modules and fuel rail assemblies. The Beijing Technical Center will have full testing capability for components, powertrain systems and vehicle performance and emissions to support advanced research & development for MPFI and GDi systems. (From a press release on April 18, 2013)