Delphi Automotive Systems Forms Joint Venture With Shanghai Automotive Air Conditioning Factory
11 February 1998
Delphi Automotive Systems Forms Joint Venture With Shanghai Automotive Air Conditioning Factory
SHANGHAI, China, Feb. 11 -- Delphi Automotive Systems has
signed a joint venture agreement with a China-based company to produce climate
control components for the Chinese automotive market. The joint venture
agreement was announced today by Delphi Automotive Systems President and
General Motors Executive Vice President J.T. Battenberg III.
The joint venture, which will partner Delphi Harrison Thermal Systems and
Shanghai Automotive Air Conditioner (SAAC) Factory, will be known as Shanghai
Delphi Automotive Air Conditioning Systems Co. Ltd. It will produce air
conditioning modules and heat exchangers for a number of China-based
customers. The heat exchanger products include condensers, evaporators and
heater cores. This is Delphi Thermal's first operation in China.
"This joint venture with SAAC demonstrates our commitment to establishing
manufacturing operations for all of our core products in China, and supports
our belief in the tremendous potential in the Chinese market," Battenberg
said. "It allows for us to provide components for both current and future
Chinese vehicle manufacturers."
Located in the Pudong New Area, the joint venture will be housed in
existing facilities covering 38,000 square meters. A new structure will be
built to manufacture products for Shanghai General Motors beginning in the
first quarter of 1999. The joint venture is expected to be operational by
February 1998. The facility will initially employ approximately 920 people,
and have an annual production capacity of 400,000 units.
"We're excited about the opportunities that exist in China's rapidly-
expanding automotive market," said Delphi Thermal General Manager Ronald M.
Pirtle. "Delphi Thermal and SAAC have formed a very strong company through
this strategic partnership. It combines SAAC's local market knowledge, solid
customer base and long-standing presence in China with Delphi Thermal's
extensive experience and expertise in thermal systems and components."
Delphi Automotive Systems currently has 11 joint ventures, three wholly-
owned facilities, and seven license agreements in China. In addition to
thermal management systems, Delphi's China projects cover a wide range of
automotive components and systems products, including power and signal
distribution systems, steering systems, engine management systems, suspension
components, alternators and maintenance-free batteries.
"A strong presence in China is critical to Delphi's long-term success,"
Pirtle continued. "With this partnership in place, we are now part of a
Delphi contingent in China that's well-positioned to bring customers timely
solutions and world-class automotive components and complete systems."
SAAC is the largest manufacturer of automotive air conditioning systems in
China. It currently has a market share of 70 percent in the domestic China
market. SAAC also has a new technical center designed for the development and
testing of air conditioning systems and components.
Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is the
world's most diversified supplier of automotive components and systems. With
the recent integration of Delphi Delco Electronics Systems, Delphi operates
208 manufacturing facilities, 47 ventures and 27 technical centers in 36
countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo.
Delphi can be found on the Internet at http://www.delphiauto.com.
SOURCE Delphi Automotive Systems