Delphi goal: Europe and the United States Asia-Pacific three points

Jiang Jian, Deputy General Manager of Delphi Automotive Systems (China) Investment Co., Ltd.

Reporter: Please talk about Delphi's current business situation.

Jiang Jian: Delphi completed its reorganization from last October to last year. Throughout the company, I can use reborn to describe it. Our restructuring lasted for four and a half years. It was the longest and largest in history. It experienced oil price surges, the financial crisis led to the stagnation of the entire credit market, and the complex coordination between the U.S. government and General Motors. The entire company was a new beginning last year, and it is also an experiment that the company can continue to develop after the reorganization is completed. The answer sheet is very good.

On February 18, 2011, we just announced the financial situation for 2010, with annual sales of 13.8 billion U.S. dollars. The profit and cash situation is very good. There are 3.5 billion U.S. dollars of cash in hand and the cash flow is very abundant. The purpose of the entire reorganization has basically been reached. As a high-tech company, we focus on safety, environmental protection and China Unicom. After the reorganization, the product line was more reasonable and the entire company was more balanced.

Reporter: After the reorganization, is the distribution of customers and regions diversified?

Jiang Jian: The process of customer diversification, in fact, we started from the general separation, and the recent development is faster. In the past, customers were GM's largest, non-general customers were less than 20%, and most of their business was concentrated in North America. At present, we do not have a customer that exceeds 20% of the share, and the dependence on a single customer is much reduced. Secondly, there are also very big changes in the regional distribution. The region with the largest sales volume is not North America. It is Europe, accounting for 45% of sales, North America 40%, and Asia Pacific 20%, of which China accounts for about 14%. . Our goals for the next five years are 30% in North America, 30% in Europe, 30% in Asia Pacific, and 10% in other countries such as South America. Delphi's situation was very good last year, of course, thanks to the recovery of the auto industry. The recovery of the North American market, the European market did not continue to decline, and the Asia-Pacific region continued to be strong.

Reporter: The changes mentioned just now are mainly reflected in the financial point of view. Achieving a healthy profitability. Will the product line continue to be enriched at the same time? It turns out that most of the parts and components on the car are made. Can the product line now be more detailed?

Jiang Jian: We are the business unit architecture, 4+1. There are product lines below the four divisions. The Electronics and Security Business Unit consists of two product lines. One product line is called Entertainment and Driver Information System, or IDI (Infortainment & Driver Interface). Its products are all visible, such as entertainment audio and navigation devices. Consumers can access; another product line is electronic control products, or EC (Electronic Control), its products are invisible to consumers, such as sensors, various electronic control components, there is a lot of new energy related .

The second division is Parker's electronic/electrical architecture. In addition to wire harness production, it also includes helping customers design the entire electrical architecture, that is, how the wiring harness is laid out. Simply providing the wiring harness and intervening at the beginning is not the same. At the beginning, how does the line go, how does the main line go, how do the lines go, and how many lines can be saved when planning well. The line of the car, many of which are copper wires, is of high value, and the line is also heavy. The heavier it is, the heavier it is, the less environmentally friendly it is. The car is in a bad environment. Some lines are next to the engine. How to ensure that the road is avoided Self-ignition? Really can not underestimate the line. Another product line is the connector and the central electrical box. How to connect the line, the knowledge is very large inside.

There is also a new energy vehicle. Traditionally, the voltage is 9 volts or 6 volts. New energy vehicles are high voltages, 220 volts or even higher. In case of an accident, if two new energy vehicles collide, how to ensure safety? There are new materials. The original wire was made of copper wire. It was expensive and heavy. Now there is aluminum wire, but the ignition point is low, and the load assembly is burned. How to ensure that it does not burn? The line of the car reflects safety, the lightness of the line reflects environmental protection, and the line itself can be connected. In this field, we are the world's largest supplier.

The third division is the engine management system, the powertrain. There are two product lines, diesel and gasoline engine management systems. Delphi was the first to start a petrol engine management system in the 1970s. It was also a very big business and it was related to environmental protection. Delphi is the world's second largest supplier of diesel engine management systems.

Reporter: Is this engine an EMS (Automobile Engine Management System)? Is there a generator?

Jiang Jian: About ten years ago Delphi stripped off the generator business. Our powertrain system is the oil pump, oil meter and powertrain related products. This is the third division.

The fourth division is air conditioning, Delphi Heat Exchange. Below are two product lines, automotive and non-automotive. Many items of air conditioning can be used in non-automotive categories such as civil and commercial real estate. In Asia, non-automotive businesses have not yet started. This year we have air-conditioning exhibitions in India and Beijing. We have started to participate in such exhibitions. Air conditioning is also an environmentally friendly product. For example, compressor technology can be combined with fuel economy.

This is the four divisions, the so-called 4+1, and one is also the division, that is our after-sales department, we call product service solutions. The use of Delphi's brand and the advantages of the original package to do after-sales market.

Reporter: Are there any products after the sale that are not the above four business units?

Jiang Jian: Based on the above four divisions. For example, we have already stripped the battery business in the world, but have just begun to re-sell Delphi brand batteries in China, and use our accumulated knowledge to ensure quality and ensure that we can brand Delphi. Therefore, taking advantage of Delphi's brand and focusing on Delphi products is not limited to Delphi products. So this architecture is 4+1, basically the product line is more concentrated.

Reporter: None of the chassis brakes, steering systems, and interior seats are done. Seat belts?

Jiang Jian: Airbags do not do. We make electronic control units. Seat belts we did not do, but inside the control system we do, with electronic related to do, our advantages are more concentrated.

Reporter: How much is the product line reduced compared to the original?

Jiang Jian: When it comes to the reduction of product lines, Delphi began in 1995 and it is finishing it. There were 180 product lines and there are now more than 30 product lines. This change is very large, and restructuring has accelerated the process.