European New Business Wins Speak to Delphi's Competitive Advantage
15 September 1999
European New Business Wins Speak to Delphi's Competitive Advantage As Independent Corporate EntityDelphi Europe Posts $840 Million in First-Half New Business: 60 Percent from Customers Other Than General Motors Announced Today: New Wiring Contract Triples Delphi's Electrical Systems Business with Peugeot FRANKFURT, Germany, Sept. 15 -- With $840 million in new business on the books for the first half of 1999, Delphi Automotive Systems Europe is clearly enjoying one of the benefits of full independence from former parent General Motors Corp. . "This is an outstanding endorsement of Delphi as a fully independent supplier," said Jose-Maria Alapont, President of Delphi Europe. "Every major vehicle manufacturer is looking closely at what we can offer and, as the sales figures prove, they are finding a strong company with an exceptional capability." Of the $840 million in new business booked during the first six months, $508 million (around 60 percent) is from vehicle manufacturers other than General Motors and its subsidiaries, including Opel. Delphi new business booked worldwide during the first six months of 1999 was $15 billion, 33 percent ($5 billion) of which was with customers other than General Motors. Peugeot Contract Announced New business announcements made by Delphi today at the Frankfurt International Motor Show include a contract to design and supply wiring harnesses for use in a 2001 model year vehicle for PSA Peugeot Citroen. Delphi's Packard Electric Systems division will be a full-service power and signal distribution systems supplier for an undisclosed Peugeot Citroen high- volume vehicle. Delphi will also be strongly involved in redesigning the electrical/electronic architecture on all future Peugeot vehicles. "This significant new business win makes Delphi one of Peugeot's largest power and signal distribution systems suppliers, and success with this program will position Delphi well for future growth opportunities with Peugeot," said David Burgner, managing director, Delphi Packard Electric Europe. The undisclosed Peugeot vehicle is scheduled to go into production in late 2000 for both European and international export sales. "Delphi has an excellent opportunity to demonstrate its advanced technologies to Peugeot and enhance this vehicle's electrical/electronic architecture," said Jean-Claude Friloux, Delphi Packard Electric's Peugeot customer manager. "In the short term Delphi will integrate an electronic control unit made by Delphi Delco Electronics. Longer term, Delphi will propose integrating technologies from its 200X architecture vision displayed at the 1999 Frankfurt Auto Show." Calsonic Joint Venture Also at Frankfurt on Wednesday, Delphi announced that it has formed a joint venture in Hungary to manufacture automotive air conditioning compressors for the European market. The venture, formed by Delphi's Harrison Thermal division and Japan-based Calsonic Corp., will be located on a green field site in Balassagyarmat, approximately 80 kilometers north of Budapest (on the Hungary-Slovakia border). Delphi holds the majority ownership of the venture. Known as Delphi Automotive Systems-Calsonic Corporation (DAS-CC), the joint venture will produce compact variable compressors (CVC), the next generation of variable displacement piston technology. It's the second CVC joint venture in Europe between the two companies; Delphi Calsonic Compressors in Douai, France, began production in January 1998. "Delphi continues to respond to Europe's growing air conditioning needs, and this venture, coupled with our Douai operation, puts us in a leading position in the European compressor market," said Jose Maria Alapont, president, Delphi Automotive Systems Europe. Groundbreaking for the 14,000-square-meter facility is expected later this year, with start of production slated for the first quarter of 2001. The plant will initially employ 170 people. Plans call for that figure to grow to more than 400 when full production is reached. The plant's annual capacity will exceed one million units. It will serve various European customers. Delphi and Calsonic now have four joint ventures manufacturing air conditioning compressors, one of which includes Calsonic Harrison Corporation in Japan. That facility also manufactures CVCs for the European market. Previously announced contracts booked during the period -- and contributing to the $840 million in new European business for 1999 -- include: * Development for BMW of a unique new Solid Oxide Fuel Cell to supply energy for vehicle electrical systems. * A highly integrated modular door for DaimlerChrysler's heavy trucks. * Major European airbag contracts with Volkswagen and Opel. * Suspension systems for Rover. BMW For BMW, Delphi is working to introduce a vehicle that uses its new Solid Oxide Fuel Cell (SOFC) technology to generate energy for the electrical systems. The SOFC is a new and highly innovative type of fuel cell that is less sensitive to hydrogen impurities than conventional Proton Exchange Membrane (PEM) fuel cells. This allows it to operate from hydrogen produced on-board by a fast and cost-effective gasoline reformer. The development agreement with BMW was signed in April. DaimlerChrysler For DaimlerChrysler, Delphi is involved both with the vehicle manufacturers' heavy-duty truck division, as well as the M-Class sport utility vehicle. Delphi's first Level-3 Modular Door System produced anywhere in the world will be in support of DaimlerChrysler in Europe, for the Mercedes-Benz Actros truck program. Delphi has full door integration responsibility for all systems contained within the door, including thermal, electrical, electronics, trim and mechanical hardware systems. Also during the last six months, Delphi was awarded a four-year contract to supply M-Class modular cockpits for Mercedes-Benz U.S. International (MBUSI) in Graz, Austria. The contract, estimated to generate more than $28 million, involves orchestrating complex logistics to supply the modules from Delphi's modular build and sequencing plant close to the MBUSI facility in Tuscaloosa, Alabama. For the DaimlerChrysler contract Delphi manages a supply chain that includes 46 suppliers in six countries. These suppliers provide more than 180 components, including the steering column; heating, ventilation and air conditioning system; upper and lower instrument panel; air conditioning outlets; glove box; instrument cluster; passenger-side airbag and wiring harness. There are currently more than 8,000 different possible cockpit specifications. Volkswagen The Volkswagen contract is for a future global airbag program. To respect customer product plans, no details on this exciting program will be publicly disclosed at this time. Opel For Opel, Delphi will supply driver and passenger airbags globally. Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world leader in automotive components and systems technology. Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communications -- provide comprehensive product solutions to complex customer needs. Delphi has approximately 201,000 employees and operates 168 wholly owned manufacturing sites, 38 joint ventures, 51 customer centers and sales offices 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 .