Delphi Inaugurates CVC Compressor Plant in Brazil
22 August 2000
Delphi Inaugurates CVC Compressor Plant in Brazil
JAGUARIUNA, Brazil, Aug. 22 South American automobile
manufacturers seeking world-class technology and solutions for their air
conditioning requirements can look no further than Jaguariuna, Brazil, where
Delphi Automotive Systems today officially inaugurated its newest
Compact Variable Compressor (CVC compressor) manufacturing facility.
Delphi Chairman, CEO and President J.T. Battenberg III joined several
company officials, a number of special guests and employees of the new plant
at inauguration ceremonies today in Jaguariuna, some 100 km north of
Sao Paulo.
The 10,000-square-meter plant, Delphi's first compressor facility in South
America, further expands the company's CVC compressor manufacturing footprint.
It also illustrates Delphi's commitment to partnering with South American
customers, Battenberg said, and bringing the very best in innovation to a
region that holds great potential within automotive air conditioning.
"We are very confident that we will compete strongly in this promising and
developing market, and we will do so with industry-leading technology like the
CVC compressor," Battenberg said. "The South American market will have our
most evolutionary compressor design, one that's quieter, more fuel efficient,
and delivers best-in-class performance in a small package.
"That's a combination we feel will lead to great opportunities -- for us
and our customers."
Those opportunities will come in a market that shows a significant
increase in automotive air conditioning penetration. Company forecasts have
South American A/C penetration reaching 40 percent by 2003.
That, coupled with an anticipated resurgence in OEM production in Brazil
and other countries, creates an ideal environment for Delphi to continue its
global momentum for its cutting-edge CVC compressor. Featuring best-in-class
performance ratings in relation to mass and volume, the CVC compressor brings
the company's most innovative compressor technology to South America.
"This compressor design represents Delphi's advanced thermal management
technology at its finest, and we look forward to delivering that high level of
excellence to our customers," said Ronald M. Pirtle, president, Delphi
Harrison Thermal Systems. "Its design flexibility and vast lineup of
configurations make it a perfect fit across the entire spectrum of automotive
applications."
Delphi has made an initial investment commitment of USD $45 million in the
operation, which earlier this month officially began production to support
customers. The plant will employ approximately 150 people when full
production is reached. Its capacity is 500,000 units annually.
To date, current and future business booked at the facility includes
support of Volkswagen do Brasil and GM do Brasil, and Delphi expects to
continue expanding the plant's customer base. In addition to OEM production,
Volker Barth, president of Delphi South America, said the plant also seeks to
support its South American customers' export programs, and will serve the
automotive aftermarket as well.
Sandra Y. McCulloch, Delphi Harrison Thermal Systems director of South
American operations, said that the plant's localized supply content initially
will be approximately 50 percent the first year, and the company anticipates
that number to grow steadily over the next few years. Delphi is encouraging
suppliers with whom it has experience in other markets to locate in Brazil,
and continues its efforts to develop suppliers already based in Brazil.
"The success of the Jaguariuna plant is very dependent on having highly
capable and committed suppliers located as close to the plant as possible. We
will look for, and encourage, that kind of local presence with our new CVC
compressor plant," McCulloch said. "Local relationships with our suppliers
will allow us to remain lean and efficient, and contribute to the overall
competitiveness of the operation."
Another key component in strengthening the operation's competitiveness is
its manufacturing processes, which like the compressor itself represent
entirely new compressor technology.
Similar to CVC compressor facilities in other markets, the Jaguariuna site
is transitioning to cell manufacturing, a simplified, flexible operation that
falls in line with the company's drive to become leaner and more customer
focused. The cell approach is designed to keep the manufacturing processes as
flexible as possible, enabling changes in customer requirements to be adopted
quickly.
Featuring a "swash" plate configuration, the Compact Variable Compressor
produces less noise and vibration than contemporary designs, and features
best-in-class output performance. With its wide range of displacement
offerings and a high degree of design flexibility, the CVC compressor is
adaptable to small, mid-sized and large vehicles. Its highly efficient mode
of operation allows automakers to realize savings in energy consumption, and
is a key part of Delphi's initiatives targeting energy efficiency and
environmental stewardship.
Delphi's CVC compressors are already manufactured in France, USA and
Japan, and the company's joint venture in Hungary is scheduled to begin
production in 2001.
Multi-national Delphi Automotive Systems, with headquarters in Troy,
Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in
transportation and mobile electronics components and systems technology.
Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics & Mobile Communication -- provide
comprehensive product solutions to complex customer needs. Delphi has
approximately 213,000 employees and operates 176 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 30
technical centers in 38 countries. Delphi can be found on the Internet at
http://www.delphiauto.com