Delphi(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.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. |
| 2.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.
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)
Sales by subsidiary |
(in million yuan) |
| Facility | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 |
| Delphi Packard Electric Systems Co., Ltd. Yantai Branch | 962.26 | N.A | N.A | 1,068.12 |
| Delphi Packard Electric Systems Co., Ltd. Baicheng Branch | N.A | 2,964.79 | N.A | 2,615.78 |
Source : China Automotive Industry Yearbook
Volume of production by product |
(in thousand units) |
| Product | Facility | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 |
| Air conditioners | Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. | N.A | 2,002 | 1,885 | 1,742 |
| Wire harnesses | Delphi Packard Electric Systems Co., Ltd. Yantai Branch | N.A | N.A | N.A | 598 |
| Delphi Packard Electric Systems Co., Ltd. Baicheng Branch | N.A | 9,844 thousand sets | N.A | N.A | |
| High-voltage wire | Delphi Packard Electric Systems Co., Ltd. Baicheng Branch | N.A | 2,025 thousand units | N.A | 4,395 thousand kms |
Source : China Automotive Industry Yearbook