Delphi Accelerates Growth in Asia Pacific
22 October 1999
Delphi Accelerates Growth in Asia Pacific
Region Books $1 Billion in New Sales Through 3Q99
TOKYO, Oct. 21 -- Delphi Automotive Systems
booked $1 billion in new business in the Asia-Pacific region during the first
nine months of 1999, senior executives said at the Tokyo Motor Show today.
Delphi earned $1.6 billion in total sales (consolidated and non-
consolidated) in the region last year.
Delphi will grow its business on the strength of its resources in the
region, its expansion strategy through acquisitions and partnerships, and its
developing relationships with Asian automakers, said J.T. Battenberg III,
Delphi chairman, chief executive officer and president.
"We ultimately want Asian automakers to view Delphi as their best
supplier," Battenberg said. "Over the past several years, we've expanded our
presence here so that we're in a position to provide OEMs with the best local
support possible."
Since 1992, Delphi has grown its Asia Pacific operations to 19 joint
ventures, 13 wholly owned manufacturing sites, 10 customer support offices and
three technical centers.
Delphi's new status as an independent company, achieved this May, will
fuel the company's Asia Pacific growth even more, Battenberg said. "We're
already seeing new opportunities emerge as a result of our independence," he
said. "We will use these opportunities to build trust with new customers."
New Business
The $1 billion in new business booked will be reflected in Delphi's
revenues in the years 2001 and beyond, over an average five-year contract.
More than 80 percent of this new business is to customers other than
General Motors Corp., continuing the company's diversification of its customer
base.
At the Tokyo Motor Show today, Delphi announced new contracts totaling at
least $80 million over five years.* They included:
* $40 million contract with Maruti Udyog Ltd., in India, for heating,
ventilation and air conditioning (HVAC) systems. Delphi will begin supplying
the units from its facility in the Greater Noida District, next year.
* A minimum of $35 million in contracts with automakers in China for two
environmental products. Terms can not be disclosed at this time.
* A $5.7 million contract, annually, with Kia Motors Corp., in Korea, to
supply bussed electrical centers for use in its Sephia IV mid-size vehicle
beginning in 2000. Delphi's Packard Electric Systems division will produce
the bussed electrical centers at its Daesung Electric Co. Ltd. joint venture
facility in Ansan City, Korea for Kia, a subsidiary of Korea's largest
automaker, Hyundai Motor Co. Ltd
In partnership news,
* Delphi announced the award of its first seat belt contract earned
through the company's teaming agreement with Ashimori Industry Co. Ltd. of
Japan. Navistar International Transportation Co., maker of International(TM)
brand trucks, buses and engines, has awarded Delphi a long-term contract to
design and manufacture seat belts for the first phase of its re-design of its
entire product line, which will begin with its medium-duty vehicles. Terms
were not disclosed.
* Delphi respects customer confidentiality, and therefore does not
disclose all contracts received. Unless Delphi receives customer permission,
it does not discuss customer business information with any external audience.
Joint Ventures, acquisitions and partnerships
Also at the show, Delphi announced the acquisition of 100 percent of its
Bai Cheng joint venture in China. Bai Cheng manufactures automotive cables,
wiring harnesses and ignition cable for the Asia Pacific market.
Bai Cheng represents the seventh joint venture, acquisition or partnership
Delphi has announced this year. The previous six are:
* Hasu Industries, in Malaysia, for wiring harnesses
* Akebono Brake Co., in Japan, equity interest stake ($15 million stock
purchase)
* Ashimori Industry Co., Ltd., in Japan, partnering agreement to market
seat belts
* Calsonic Corp., in Japan, joint venture to supply air conditioning
compressors to BMW and European OEMs
* Daewoo Precision Industries, in Korea, memorandum of understanding to
purchase portions of its braking business
* Expansion of air conditioning compressor capabilities in India.
Building on these announcements, William A. Ebbert, president of Delphi
Asia Pacific, said the company is "actively engaged" in discussions with other
Asian companies about potential partnerships.
"We want to grow our business across the region, but we want to do so only
when it makes sense for us, our potential partner company, our customers, and
our shareholders." Ebbert said.
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 27 technical centers in
37 countries. Regional headquarters are located in Paris, Tokyo and Sao
Paulo, Brazil. Delphi can be found on the Internet at
http://www.delphiauto.com