Delphi Technologies: your auto parts strategy
Delphi Technologies PLC is a global provider of advanced powertrain technologies and solutions for Original Equipment Manufacturers (OEMs) of both light vehicles (passenger cars, trucks, vans and sport utility vehicles) and commercial vehicles (light duty, medium duty and heavy trucks, commercial vans, buses and ATVs).
In addition, it manufactures and sells a wide range of products and services to aftermarket customers and original equipment service customers.
Delphi Technologies strategy
The company‘s strategy is to continue accelerating the development of market-relevant technologies that solve the increasingly complex challenges of its customers and implement a more agile and flexible cost structure to provide margin expansion and revenue, profit and flow growth. of long-term cash.
In general, the company plans to grow its business by executing the following strategies, among others:
Technological leadership
Delphi Technologies has strong positions in fuel injectors, fuel pumps, and complete fuel injection systems, including software and controls.
In addition, the company offers leading technology solutions in the areas of electronics and electrification, such as motor control modules and power electronics, where it sees long-term growth driven by increasing levels of electrification.
Its power electronics technologies include products such as high-voltage inverters, DC / DC converters, and built-in chargers that transfer electrical power to enable electric and hybrid vehicle propulsion systems.
The complete powertrain product portfolio, combined with its proprietary software and controls, enables industry-leading powertrains for internal combustion, hybrid and electric vehicle engines.
Regional focus
Delphi Technologies has a presence in the world’s major regions and has positioned itself as a leading provider of advanced vehicle propulsion technologies, including electrification, tailored to meet the needs of its customers in each region.
The company is focused on providing technologies and solutions that solve some of its customers’ most complex powertrain challenges, by enabling its customers to meet increasingly stringent local regulatory requirements while improving vehicle performance.
Aftermarket
Globally, Delphi Technologies plans to expand margins by focusing on higher-value product lines, such as electronics and services, which include diagnostics and remanufacturing.
It expects demand for these product lines to grow faster than the general aftermarket industry as the electronic content of new vehicles continues to increase, providing a solid foundation for profitable scaling in the future.
In addition, it hopes to benefit from the aftermarket growth in key regions around the world, especially China, as the average age of vehicles increases and the need for replacement products increases.
Cost structure
Delphi Technologies continues to take steps to address its cost competitiveness through increased operational efficiency, by reshaping and realigning its engineering footprint, maximizing manufacturing production and locating its facilities in countries with the best cost.
The sector and Delphi Technologies
The automotive and commercial vehicle parts industry provides components, systems, subsystems, and modules to original equipment manufacturers for new vehicle manufacturing, as well as the aftermarket for use as replacement parts.
In 2019, global production of vehicles (including light and commercial vehicles) decreased by 6% compared to the previous year, reflecting a decrease of 9% in China, 4% in Europe, 4% in North America and 4% in South America.
The demand for automotive components in the OEM market is generally a function of the number of new vehicles produced in response to consumer demand, which is mainly due to macroeconomic factors such as credit availability, interest rates, fuel prices, consumer confidence, employment and other trends.
In the commercial vehicle market, vehicle production is primarily driven by industrial production, the amount of cargo tonnage being transported, and the availability of credit and interest rates.
