delphi.doc

Delphi Automotive PLC(NYSE:DLPH) is amultinationalautomotive partscompany headquartered inTroy, Michigan,USA. Delphi is one of the worlds largest automotive parts manufacturers and has approximately 146,600 employees (18,900 in the United States).2With offices worldwide, the company operates 150wholly ownedmanufacturing sites, 44joint ventures, 53 customer centers and sales offices, and 33 technical centers across 38 countries.Statistics: Public Company Incorporated: 1998 Employees: 211,000 Sales: $29.14 billion (2000) Stock Exchanges: New York Ticker Symbol: DPH NAIC: 336312 Gasoline Engine and Engine Parts Manufacturing; 336322 Other Motor Vehicle Electrical and Electronic Equipment; 33633 Motor Vehicle Steering and Suspension Components (Except Spring) Manufacturing; 33634 Motor Vehicle Brake System Manufacturing; 33635 Motor Vehicle Transmission and Power Train Parts; 336399 All Other Motor Vehicle Parts Manufacturing; 54171 Research and Development in the Physical, Engineering, and Life Sciences Company Perspectives: Achieving optimum performance requires system expertise. An automotive vehicle, in its most basic form, is a group of interacting systems. Thats why we believe its critical to design, test and manufacture each component and module as part of the integrated system in which it operates. We call it the Delphi Automotive Systems approach. After ensuring that each system is integrated with other related systems, we use our extensive experience in the automotive industry to meet your vehicles space/weight restrictions, mechanical interfaces, assembly processes, human ergonomics requirements, environmental exposure parameters and service procedures. As a result, the benefits you will gain from partnering with Delphi Automotive Systems are: fully integrated technology; quality components, systems and modules; faster, lower-cost assembly; better inventory control. When you put it all together, the Delphi Automotive Systems approach ensures a perfect match between components, systems and the vehicles in which they are used. History 1994: General Motors formedAutomotive Components Group. 1995: ACG was renamedDelphi Automotive Systems. 1997: GM andHughes Electronics Corporationspin-off ofHughes Defenseelectronics business and transferDelco Electronicsfrom Hughes to Delphi. 1999: Delphi Automotive Systems became a fully independent publicly held corporation. 2000: Delphi purchased UK based Lucas Diesel Systems from TRW Inc who purchased its parent LucasVarity plc in 1999. 2001: 11,500 jobs were cut worldwide (Bischoff 1A). 2002: Delphi Automotive Systems was renamedDelphi Corporationreflecting its diversified business direction. 2004: Delphi was subpoenaed by theSecurities & Exchange Commission (SEC)in July for irregular accounting practices and financial transactions. 2005: Delphi disclosed irregular accounting practices. A number of executives, including CFO Alan Dawes, resign. Delphi ChairmanJ.T. Battenbergretires. Delphi files forChapter 11bankruptcyprotection to reorganize its struggling U.S. operations. As a result of this action, theSecurities and Exchange Commissiongranted an application by theNew York Stock ExchangetodelistDelphiscommon stockandbonds.3The stock tradedover the counteron thePink Sheetselectronic exchange. 2005: Twenty-four plants closed down in the U.S. 2006: Delphi announced it would sell off or close 21 of its 29 plants in theUnited States. The eight plants it intends to keep are located inBrookhaven, Mississippi;Clinton, Mississippi;Grand Rapids, Michigan;Kokomo, Indiana;Lockport, New York;Rochester, New York;Warren, Ohio; andVandalia, Ohio. Delphi proposes that these remaining plants will operate with wage reductions and workforce reductions. October 6, 2009: Delphis core assets were purchased by a group of private investors to create a new Delphi Corporation. Some of its non-core steering operations have been sold toGeneral Motors Company, the successor to the bankruptMotors Liquidation Companythat used to be the old General Motors Corporation. The stock was cancelled. The old Delphi Corporation was renamed DPH Holdings Corporation.4 May 2011: The company filed with the SEC to raise up to $100 million in an initial public offering.5 November 2011: Delphi set terms for its IPO, expecting to raise $554 million by offering 24.1 million shares at a price range of $22 to $24.6Chapter 11 reorganizationDuring the Chapter 11 cases, Delphi has made substantial progress in identifying and implementing the sale (or receiving Bankruptcy Court approval to sell) or wind down of those facilities and business lines that do not support the companys future strategic framework, including: The sale of the brake hose manufacturing business inDayton, OhiotoHarco Manufacturing Group, announced in January 2007.7 The settlement of a social plan in the Concurso, or Spanish insolvency proceeding, of Delphi Automotive Systems Espana S.L. The sale of the Mexican brake components business, including a manufacturing plant inSaltillo, Coahuila,Mexico, toRobert Bosch LLCand its affiliate Frenados Mexicanos, S.A. de C.V., announced in June 2007.8 The sale of substantially all of the assets of MobileAria, Inc. toWireless Matrix USA, Inc.; The sale of the U.S. Battery operations inNew Brunswick, New JerseytoJohnson Controls, Inc. in 2006.9 The wind-down of aDelphi MedicalTexasfacility inHouston, Texas The consolidation of fuel injector production inRochester, New Yorkduring 2006-2007, which allowed the Debtors to wind down a manufacturing facility inCoopersville, Michigan The sale of thecatalystbusiness toUmicore Group, completed in October, 2007.10 The sale of theWheel bearingsbusiness based inSandusky, Ohioto Kyklos, Inc., which is a wholly owned subsidiary of Hephaestus Holdings, Inc., in February 2008.11 The sale of the Global Steering and Halfshaft Business toSteering Solutions Corporation, a wholly owned subsidiary ofPlatinum Equity, LLC, announced in December 2007. The Steering business was based inSaginaw, Michigan, and was formerly known as theSaginaw SteeringDivision of General Motors.12 The sale of the Interiors and Closures business was announced in October, 2007, toRenco Group. This includes facilities in:Gadsden, Alabama,Cottondale, Alabama,North Kansas City, Missouri,Orion, Michigan,Adrian, Michigan,Woerth,France,Matamoros,Mexico, the SDADS Joint Venture inShanghai,Chinaand the KDS Joint Venture inDaegu,South Korea.13 The sale of certain North American Brake Component Machining and Assembly Assets toTRW Automotive Holdings, which includes sites inSaginaw, Michigan,Springhill, Tennessee, andOshawa,Canada, announced in September 2007.14 The company will continue with its stated plans to sell or wind-down additional non-core product lines and manufacturing sites through 2008. The sale of various components and steering operations to the newGeneral Motors Companywas announced on August 3, 2009. Delphi Thermal Systems, Powertrain, Powertrain Systems Grand Rapids, and Electronics and Safety became part ofGM Components HoldingsLLC, a subsidiary of GM. Delphi Steering, two regional engineering centers, and 15 manufacturing locations in Mexico, Brazil, Europe, India, China, and Australia became part ofGM Global Steering HoldingsLLC, also a subsidiary of GM.15 Sale of global suspension and brakes business (Global Ride Dynamics) to BeijingWest announced March 31, 2009.16BWI Group commenced November 1, 2009.On November 4, 2009 Delphi named a new board.17John A. Krol is the chairman of the new board.Rodney ONeal is the President andchief executive officerof the company18(since January 1, 2007), replacing Robert S. Steve Miller.The investment bank,Rothschild, Inc., is currently advising Delphi in its Chapter 11 restructuring.citation neededCorporate structure and leadershipDelphi is structured into the following groups: Consumer Products Manufacturer Products Aftermarket & Dealer ProductsThe company is focusing the organization on the following core strategic product lines: Controls & Security (Body Security, Mechatronics, and Displays) Electrical/Electronic Architecture (Electrical/Electronic Distribution Systems, Connection Systems, and Electrical Centers) Entertainment & Communications (Audio, Navigation, and Telematics) Powertrain (Diesel and Gasoline Engine Management Systems) Safety (Occupant Protection and Safety Electronics) Thermal (Climate Control & Powertrain Cooling)For the list of Delphi Senior Managers seeDelphi Senior Leadership.Corporate issuesIn February 2007 the multinational Delphi Automotive Systems Holding Inc. announced the closure of its plant inPuerto Real,Cdiz,Spain, with a loss of 1600 direct jobs and more than 2500 indirect jobs.19despite having agreed to continue its manufacturing operations until 2010 and receiving more than EUR 25 million from various public administrations in order to guarantee its workers jobs.20TheAndalusianautonomous governmentannounced it would begin legal action against the company for breach of local labor laws.21On October 8, 2005 Delphi filed for bankruptcy. Slowly, cutting jobs and shutting down many plants around the Dayton area and nationally (Roberson). The increased competition between the U.S. and other countries in the automobile industry has been a factor in Delphis bankruptcy (Wehrman D1). Due to the economic slump, all but five of the plants in the Dayton area have closed.In May 2008, Delphi filed a lawsuit against investors. The lawsuit seeks to impose payment by investors in the amount of $2.55 billion in securities to aid Delphi as it seeks to come out ofbankruptcy. U.S. Bankruptcy Judge Robert Drain inNew Yorkruled to allow Delphi to seek payments through a contract againstAppaloosa Management LPas well as denying investors request for a cap of $250 million for damages.Joint ventures EnerDel- started as a joint venture of Ener1 and Delphi. In August 2008, Ener1 bought exclusive ownership of EnerDel.23 Condumex- (AGrupo Carsodivision).editEnvironmental recordResearchers at theUniversity of Massachusetts Amherstidentified Delphi corp. as the 21st-largest corporate producer ofair pollutionin the United States in 2002.24According to the study, the manufacturers most toxic emissions includeasbestos(542lb/yr),chromiumcompounds (1,082lb/yr),leadcompounds (8,466lb/yr), andsulfuric acid(17,600lbs/year), while the most massive emissions areglycol ethers(111,520lbs/year) andhydrochloric acid(80,000lb/yr).25Delphi is an Automotive Leader, Globally and in Chinan Leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments n Global manufacturing footprint-Strategically located to support our customers-Advanced technology and OE quality parts and service Extensive footprint in China-Over 20 sites across China-Providing local R&D and manufacturing support to customers in China and in Asia Pacific regionn Supplier to most major OEMs in China and in over 40 categories of parts and componentsDelphi provides innovative technologies responding to global megatrends in consumer needs.SAFE Enhancing Personal SafetyGREEN Addressing Global ConcernsCONNECTED Making ConnectionsDelphi Power ElectronicsLeveraging our electronics heritage for innovation, value and reliabilityu More than 20 years experience in HEV/EV electronics and systems u Significant power electronics intellectual property over 100 patents u Complete silicon to software to system capabilityu Experienced Tier-1 global supplier with established design, validation and production infrastructureu Focused on aggressively lowering HEV/EV powertrain electrification costDelphi has a Successful History and Capability in Chinau Advanced Engineering: Advanced engineering capability in China since 2004 Fully equipped high-voltage laboratory for HEV/EV HEV/EV level performance and emissions laboratory Developing independent advanced technologies in China:1.First on-board TV reception system for CMMB 2. Driver information & Entertainment Center3. Launched Smart Parking Guidance System Currently working on low-cost electric vehicle solutions for the China HEV/EV marketu Production Engineering: Validation capability Localized design teams for execution of high-volume projects Delphi China has been awarded over 60 patents and has filed hundreds of Records of Inventionsu Manufacturing: 17 manufacturing sites in ChinaDelphi Systems Solutions: Vehicle Integration, Critical Components, Key Supplier PartnershipsProduct Portfolio to Support the Range of Electrified Powertrain Architectures产品组合支持各范围的电气化动力总成结构Globally Distributed Manufacturing Footprint Capacity Flexibility to Grow with the MarketComplementary Environmental Regulations, Industry Policies & “Green” Consumers are Driving Market DemandPolicy & Market Drivers u Government regulations and incentives More strict exhaust gas emissions Lower fuel consumption limits Consumer incentives for purchase of HEV/EV vehicles Municipal incentives for busses & fleets New technology investment support Infrastructure investmentsu Increasing global fuel consumption and environmental awareness consumers want fuel efficient vehiclesu Vehicle makers need solutions to meet: Regulatory environment Consumer preference/demandsChina Intends to be a Global Leader in New Energy Vehicles via Incentives, Investment and Production TargetsNew energy vehicles are an important part of the Chinese governments energy and industry development plans, supporting access to market and funding.1.Central Government Fundingu Investment of 10B RMB ($1.5B USD) from 2009-2011 to support development of a 5%/500k unit market by 2012u Investment of 3B RMB ($440M USD) from 2009-2013 in infrastructureu Investment of an additional 100B RMB ($14.8B USD) to subsidize development of new energy vehicles over the next decade2.Consumer Subsidyu Set funding/subsidy for EV/HEV buyers (given to OEMs) in 5 cities: Shanghai, Changchun, Shenzhen, Hangzhou, Hefei 3,000 Rmb for HEV vehicle buyer 50,000 Rmb - PHEV / 60,000 Rmb - EV per buyeru Government and fleet owners in 25 cities are given similar incentives3.Local Government Preferential Policyu Strongly support new energy vehicle development and intend to attract leading global companies and talents by offering preferential policy (low cost land, Tax exemption, personal housing subsidy, etc)Hybrid and electric vehicle technology is becoming a market reality in China, but largest volume in Micro!u Micro hybrid volume dominates electrified powertrain marketu Projected volumes of Full/Mild Hybrid may not be enough to drive costs downu Government targeting 5% market share by 2012, and considering 20% by 2015u Electrified powertrain penetration in 2020EV / PHEV / Full / Mild / Microu Europe (25M):1.5% / 1.5% / 3.9% / 0.6% / 66.9%u NA (16M):0.7% / 0.7% / 7.9% / 0.4% / 4.4%u China (30M):1.1% / 1.4% / 0.2% / 0.4% / 11.8%China is Positioned to Become the Global Leader in Powertrain ElectrificationChina Opportunity: Technology acquisition & development Leading Lithium battery maker Key natural resources Largest auto market in world China Breakout: Incentives, Emission & Consumption Regulations Key natural resources Major market growth New EV/HEV investmentChina Leadership: Technology leadership Charging infrastructure Mature supply baseChallenge: High CostElectrification Requiresu Significant investments needed to develop and launch new components, systems, vehicles and infrastructureu Huge drain on the available engineering resources for vehicle and component makersu Developing domain knowledge is costly and time consumingSolution: Breaking the High Cost LoopReducing Costs Throughu Meaningful incentives, policies and regulationsu Sustainable cost reductions Building block design approach for scalable solutions Technological breakthroughs Innovation through generational developmentDelphis has experience and capability to provide complete battery pack systems a basis for next generation innovation. Battery Cell Flexibility-Capable of working with multiple cell suppliers, chemistries and package typesCell Monitoring and Control-History of automotive controls production and algorithms for accurate monitoring and controlProduction Experience-NiMH battery packs in production. Lithium packs and controls in production Q1 2011.Mechanical Structure and Thermal Management-Complete component modeling, analysis and test capabilityVehicles Systems Interface-Systems interface knowledge and experience and capability for modeling and simulationValidation and Durability-Complete validation and test capabilitySummaryThere are Challenges and There are solutions!u The market is real, and the drivers are clearu We understand the challenges, and we are bringing solutions for today and tomorrowu Government, vehicle manufacturers and component suppliers must work together to succeedu Workingtogether on electrification of the powertrain we can ensure a sustainable future for the next generation. 简介德尔福是全球领先的汽车与汽车电子零部件及系统技术供应商。其产品系列包括动力、推进、热交换、内饰、电气、电子及安全系统等，这些产品几乎涵盖了现代汽车零部件工业的主要领域，为客户提供全面的产品与系统解决方案。 德尔福公司原为通用汽车公司的零部件子公司。1999年5月28日，德尔福正式与通用汽车公司分离，成为一家完全独立的、公开在纽约证券交易所上市的公司。德尔福总部位于美国密执安州特洛伊（Troy, Michigan），并在法国巴黎、日本东京、巴西圣保罗设有地区性总部，在汽车电子、汽车零部件和系统集成技术方面处于世界领先地位。德尔福拥有18