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Delphi eyes China, other emerging markets
By Vivian Jin |
December 21, 2011, Wednesday
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Print Edition
Print Edition
DELPHI said emerging markets including China would be the focus of its future investment as the former biggest United States auto parts supplier seeks to regain industry leadership, a company official said.
Delphi is sitting on a pile of cash after climbing out of bankruptcy protection in 2009 and raising nearly US$530 million in its initial public offering on the New York Stock Exchange last month.
"Markets in the EU and America are very mature," said Majdi B. Abulaban, president of Delphi Asia Pacific. "Our investment is going to go where the growth is to go and that is the emerging markets."
Since 2005, the former General Motors parts unit has whittled down its business, simplified its capital structure and streamlined product lines, focusing on being "green, safe and connected."
Emerging markets including China, Russia, India and Brazil now generate about 33 percent of Delphi's revenue worldwide, said Abulaban.
The Asia-Pacific region accounted for 16 percent of Delpi's total revenue and the company intends to lift the proportion to 30 percent, according to Abulaban.
Delphi is joining other parts makers in increasing investment in China as overseas-based car manufacturers expand capacity here in an attempt to offset weak home demand.
Chinese partners
Though industry wide vehicle sales growth softened to 3 percent this year, Delphi's China revenue increased 16 percent from a year earlier as government regulations to have less emissions combined with more sophisticated needs from consumers spurred demand for its products, Abulaban said.
He also said there is great potential in China as Chinese carmakers have ambitious plans to develop advanced technologies for new energy vehicles and increase exports to overseas markets.
"Local car manufacturers are going upstream with more sophisticated vehicles; our cooperation is becoming much more significant than in the past," Abulaban said.
The Delphi Packard Electrical/Electronic Architecture division recently opened a US$10 million plant in Anting, Jiading District of Shanghai, manufacturing advanced wiring systems. The plant will have 2,000 employees by the end of next year.
Abulaban said the company would continue to expand in China.
"In 2012, we are looking to open four new facilities in China," he said.
Delphi has formed strategic partnership with China's Great Wall Motor, jointly developing electronic systems, advanced engine management and electrical architecture systems.
The company also formed cooperation agreements with Guangzhou Auto and Chang'an Auto regarding new energy vehicles.
Delphi is sitting on a pile of cash after climbing out of bankruptcy protection in 2009 and raising nearly US$530 million in its initial public offering on the New York Stock Exchange last month.
"Markets in the EU and America are very mature," said Majdi B. Abulaban, president of Delphi Asia Pacific. "Our investment is going to go where the growth is to go and that is the emerging markets."
Since 2005, the former General Motors parts unit has whittled down its business, simplified its capital structure and streamlined product lines, focusing on being "green, safe and connected."
Emerging markets including China, Russia, India and Brazil now generate about 33 percent of Delphi's revenue worldwide, said Abulaban.
The Asia-Pacific region accounted for 16 percent of Delpi's total revenue and the company intends to lift the proportion to 30 percent, according to Abulaban.
Delphi is joining other parts makers in increasing investment in China as overseas-based car manufacturers expand capacity here in an attempt to offset weak home demand.
Chinese partners
Though industry wide vehicle sales growth softened to 3 percent this year, Delphi's China revenue increased 16 percent from a year earlier as government regulations to have less emissions combined with more sophisticated needs from consumers spurred demand for its products, Abulaban said.
He also said there is great potential in China as Chinese carmakers have ambitious plans to develop advanced technologies for new energy vehicles and increase exports to overseas markets.
"Local car manufacturers are going upstream with more sophisticated vehicles; our cooperation is becoming much more significant than in the past," Abulaban said.
The Delphi Packard Electrical/Electronic Architecture division recently opened a US$10 million plant in Anting, Jiading District of Shanghai, manufacturing advanced wiring systems. The plant will have 2,000 employees by the end of next year.
Abulaban said the company would continue to expand in China.
"In 2012, we are looking to open four new facilities in China," he said.
Delphi has formed strategic partnership with China's Great Wall Motor, jointly developing electronic systems, advanced engine management and electrical architecture systems.
The company also formed cooperation agreements with Guangzhou Auto and Chang'an Auto regarding new energy vehicles.
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