"81% of the shareholders have already voted in favor of the bankruptcy reorganization plan. Delphi reorganization has entered the final stage. It may be completed in the first quarter of this year. Going out of bankruptcy protection is only a procedural matter. There is no obstacle." This is Delphi's global vice president. Mr. Jeffrey J. Owens, President and President of Electronics and Security and President of Asia-Pacific Region, and Mr. Jiang Jian, Senior Manager of Electronics and Security and Public Affairs, spoke in an interview with a Chinese reporter in Detroit. Combined with Delphi's recent performances, one can imagine that a brand new Delphi is coming to the world.
New Delphi reflects new efficiency
So what is the attitude of the new Delphi? We can see the main thread from Delphi's "Joint Reorganization Plan" submitted to the United States Bankruptcy Tribunal in Southern District, New York in September 2007. The "Joint Reorganization Plan" listed Delphi's reorganization plans in the five core areas: First, it reached an agreement with major U.S. unions to create an environment conducive to the company's business development; Second, it agreed with General Motors Corporation and was resolved. Certain historical issues and economic support for labor costs, to achieve future business cooperation commitments; Third, adjust Delphi's future product mix and production base; Fourth, according to the plan to reorganize Delphi's formal employees, reduce sales, management and general costs, To support product mix adjustments; Fifth, to provide funds for the United States fixed welfare pension plans.
In this "Joint Restructuring Plan", Delphi announced that it will adjust the company's product structure, focusing on the core technology areas where the company has a large competitive advantage and can provide customers with maximum support. To this end, the company will focus on developing the following six series of core product lines: First, control and anti-theft (including body security, mechanical electronics, and display devices); second, electronic/electrical architecture (including electrical/electronic distribution systems, connection systems, and electrical Center); third is entertainment and communications (including audio, navigation and electronic communications); fourth is powertrain (including diesel engine and gasoline engine management system); fifth is safety (including occupant protection and safety electronics); (Including climate control and powertrain cooling systems). At the same time, Delphi merged, reduced or sold, and closed some non-core products and production bases that did not help the company's future strategic framework, and made substantial progress.
On January 1, 2007, Delphi began to implement a new organizational structure, formed an organizational framework centered on Product Business Units (PBUs), and increased its focus on products and customers. That is, since then, O'Jerry is also responsible for electronics and security and the Asia Pacific region, that is, one business unit and one regional business.
OJ Rui said that the management mechanism based on the product line and supplemented by other lines is clearer than the previous matrix management mode in that the division of labor is clear, the responsibility is clear, and the company's operating speed is faster. “It is worthwhile to point out that in the process of bankruptcy protection, a customer’s business has never been affected due to restructuring and bankruptcy protection issues. In the past 24 months, Delphi has also received US$52 billion in new orders. This reflects the The trust our customers have in us also reflects that the union is very professional,†said O’Jerry.
Large-scale expansion in China
"Faced with global pressures for energy conservation and emission reduction, automotive electronics and safety are the core of the development of the automotive industry." OJ Rui said firmly: "The global automobile growth rate is 3.2%, and the average growth rate of the automotive electronics industry is 5 About %, and the growth rate of Delphi Automotive's electronic business is higher than 5%, of which China's business growth is faster."
Two years ago, during the worst period in Delphi, Dr. Quan Chunze, Delphi’s global vice president, Asia Pacific and China’s president, once said, “If I borrowed from China Confucius, Delphi’s status in China in 2005 and 2006 was Slim." Delphi did not seem to be able to talk about family management, state management and peace. Delphi therefore cleverly used the opportunity of the slowdown in the development of the Chinese auto market at that time and began to train employees and step up the construction of the technology center.
Today, Delphi has gradually shaken off the status of GM's business as an absolute core, accelerated the pace of development in emerging markets such as the Asia-Pacific region, and gradually emerged from the shadow of bankruptcy protection.
According to the latest information from Delphi, Delphi China's business once again became its fastest growing market in 2007: Annual turnover exceeded US$1.4 billion, an increase of 40% year-on-year, almost double the growth rate of China's entire automotive industry. .
Recalling Delphi's performance in the fastest-growing Chinese market in 2007, it can be described in terms of torrential bravery. First, the company continued to increase its investment in China, expand its production scale, set up new plants through investment, and relocate two production plants to expand its production footprint in China. Among them, the branch of the electronic/electrical distribution system in Changchun has successfully completed its relocation and capacity expansion, doubled its production capacity and upgraded its production process, further consolidating its position as the No. 1 supplier of electronic/electrical distribution systems in Northeast China; Delphi The Parker Shanghai A5 factory was officially launched. The original production equipment and staffing were all moved into the new plant. As the largest wire harness system manufacturing plant in the Asia Pacific region, the Shanghai A5 plant will have more than 1 million sets of annual production harnesses and an 80% increase in production capacity. Secondly, it signed a contract with Beiqi Holding to establish a joint venture between automotive safety products and automotive air-conditioning products. Cooperation with BAIC is further strengthened. The third is to strengthen the development of the after-sales service market in China, and held the first national after-sales service authorized dealers conference; Delphi's after-sales service business has made great progress in brand awareness, sales and distribution network, and will continue to Vehicle electronics, diesel common rail systems, heat exchange systems, chassis and brake systems, maintenance and service and other new products are introduced.
It is reported that during the past year, the office room of the first phase of the Delphi China Science and Technology Research and Development Center in Shanghai has become overcrowded. Now that the second phase of the project is drawing to a close, the number of engineers in the R&D center has increased from 400 in 2006 to 600 in 2007. This center with a total investment of over 50 million U.S. dollars and a second phase of 12,600 square meters has a variety of newly built laboratories dedicated to powertrain systems, electronic and safety systems, Delphi product and service solutions, etc. Product verification, R&D and customer training in the business area will enable Delphi China to strengthen its R&D capabilities and accelerate the localization process.
Green, Secure, Connected - Delphi Facing the Future
Although it is widely expected that the US economy may face signs of recession, O'Jerry still believes that the automotive market is more challenging. How did this conclusion come from? O'Jerry believes that at present, the United States has entered the period of post-war population-intensive birth (born from 1945 to 1965) into the retirement period, and the current population growth rate of the United States is also among the best in the world, due to the widespread retiree population in the United States. More money, outstanding spending power, which determines the North American car market will not be a big recession.
So, Delphi thinks where will automotive electronics and security products develop in the future? In this regard, OJ Rui said that Delphi believes that the future trend of product development is green, security and connectivity, which is determined by the development trend of the global automotive market.
“In 2007, the global automotive electronics market was 70 billion U.S. dollars, and it is now forecast to grow at a rate of 5%. By 2014, it may increase to a market scale of 120 billion U.S. dollars.†O'Jerry analysis said, “The automotive electronics market The maximum growth rate should come from Asia, how to make the engine more environmentally friendly, how to make the dashboard, car electronics more harmonious, and how to achieve active safety measures, these are all new growth points, we are facing a lot of new opportunities ."
A related data shows that from 2007 to 2013, compared to the average annual growth rate of 3.2% in the global automotive market, the content of automotive electronic products per vehicle will increase by 4.9%, while the growth rate in China will reach 17.2%. On the other hand, the annual average growth rate of automotive safety products will reach 11.7%, while the average annual growth rate of communication and infotainment products will reach 11.4%. It can be said that this report has met O'Neill's observation that the automotive electronics and security products market is in a rare opportunity for development.
"In terms of automotive electronics, Delphi has the advantage of building its own wafer fab, having software development capabilities, and having strong system development and integration capabilities, because Delphi came from General Motors and knew cars well." At Delphi For 35 years, Ogilvy was full of confidence in his company's capabilities.
Related information shows that the predecessor of the Delphi Automotive Electronics Division, Deco Radio, was established in 1936. The first car radio product on the car came from Deco. For more than 70 years, Delphi has supplied 275 million sets of car radio products to the world, making it the world's most music-producing company for motorists. In addition, the world's first car CD, the first car DVD and the first car telematics products also come from Delphi. Most of the automotive products currently used in satellite broadcasting programs in North America are mostly provided by Delphi. According to statistics, Delphi supplies a total of 18.75 million units, with 17 million users, and 75% of Delphi products are used in the United States. .
In addition, O'Jerry is also very optimistic about the hybrid market, he believes that the newly passed US fuel consumption regulations limit all vehicles produced in the United States before 2020 to achieve an average of 35 miles per gallon (equivalent to about 8.12 liters / 100 km The limit of ) is both a challenge and an opportunity for automakers. “Hybrid power can make a American pickup truck reach the fuel consumption level of an ordinary four-cylinder car.†O'Jairui said earnestly, “hybrid products will explode, and it is a real market opportunity in the future.â€
For the connection, O'Jerry said that as soon as a driver enters the car, he should be able to use all kinds of information, communication and entertainment products in a very concise manner, and these systems can communicate with each other without interference. These are the advantages of Delphi. .
“We know more about the market and we have the widest range of products. No company in the world knows more about the system than we do. Moreover, we know the best about the vehicle.†O'Jerry's remarks are well-founded. We can see from the contents displayed by Delphi at the “2008 International Consumer Electronics Show†held in Las Vegas, USA. Among the 8 exhibitions including Chinese-made Chery cars, the products Various mobile electronic products including active security systems, security and control, mobile communications and entertainment, electronic equipment cooling, mobile network connectivity and data connectivity products such as satellite radio, television, cruise systems, media players, high-end radio Reception, dual-screen displays, all-hazard public warning broadcasts, WiFi, Bluetooth, iPod, and data connections fully demonstrate Delphi’s comprehensive technical capabilities.
For the Chinese market, Ogilvy expressed that he is very optimistic about the prospects for the development of new energy vehicles, automotive electronics and security products through the comprehensive navigation and occupant protection systems provided by Chery’s several 2009 model vehicle software platforms. The manufacturers have taken a look at our system integration capabilities and have had practical contacts, and this market will show a rapid growth,†said OJ Rui.