Delphi Unveils New Aftermarket Brand Strategy
13 October 1999
Delphi Unveils New Aftermarket Brand Strategy; Initiative Includes New Logo and PackagingPARIS, Oct. 13 -- Delphi Automotive Systems , the largest supplier of automotive components and systems to the world's Original Equipment Manufacturers (OEMs), is now focusing its attention on expanding its reach in the worldwide aftermarket. The company introduced its strategy for increasing aftermarket sales and brand support today at Equip 'Auto, a vehicle and aftermarket show that takes place every other year in Paris. As part of Delphi's aftermarket initiative, the company unveiled a new aftermarket logo and product packaging. The logo, which is oval with Delphi emblazoned in the middle, retains the visual characteristics of the company's corporate identity and reinforces the attributes that have made Delphi the world's largest auto supplier -- namely technology, quality and leadership. "We're serious about securing significant new business in the aftermarket," said Jose Maria Alapont, vice president, Delphi Automotive Systems, and president, Delphi Automotive Systems Europe. "It's a market that is under-served, and we have the products, expertise and resources to rapidly increase our presence in this sector. Our plans call for doubling our sales in the European aftermarket by the middle of the next decade. "The aftermarket represents an opportunity for Delphi to utilize our existing global engineering and manufacturing capabilities to realize growth in a new market. We believe our original equipment quality and broad product portfolio will provide added value to our aftermarket customers," said Alapont. "Becoming a strong player in the aftermarket will strengthen Delphi's position as an OEM supplier and enable the company to partner with automakers to provide products and services throughout the entire life of a vehicle, which will ultimately benefit the consumer." Delphi has been serving the aftermarket since the early 1900s, and today is one of the top five aftermarket suppliers in the world. The company currently produces a wide portfolio of aftermarket products -- including air conditioning systems and thermal parts, security systems, batteries, shock absorbers, filtration and lubricants -- under several well-known brand names such as Diavia, Texalarm, Freedom and De Carbon. Sales from these products accounted for more than $2 billion of Delphi's total global sales, which were $28.5 billion in 1998. Delphi's strategy for increasing its presence in the aftermarket centers around integrating these existing brands under one global master brand: Delphi. "Our challenge in the aftermarket is to build a strong brand identity that leverages our OEM experience and the equity of our existing brands," said Rachelle Valdez, director, brand management of Delphi's Aftermarket Group. "We want our customers to know that the same quality and technological expertise that goes into our OEM products will now be available to them as replacement parts off the shelves. And the best way to communicate this is to bring all of our aftermarket products under the Delphi banner." To provide momentum to its aftermarket initiative, Delphi will engage in an extensive marketing campaign that includes bold new packaging for its aftermarket products and a complete brand launch package, including point-of- sale materials, for its customers. Delphi will also support the launch with a major aftermarket advertising campaign currently running in Europe. The Delphi aftermarket plan also calls for using the tagline "Driving Tomorrow's Technology" -- the same tagline introduced by Delphi Automotive Systems earlier this year to reflect the entire company's focus on future growth through innovative technology. Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is a world leader in automotive component 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 28 technical centers in 37 countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo. Delphi can be found on the Internet at http://www.delphiauto.com .