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Delphi Automotive LLP
||1997 in Troy, Michigan, USA
|| Troy, Michigan,
||John A. Krol,
Rodney O'Neal, CEO & President
John D. Sheehan, CFO
||vehicle electronics, systems, modules, &
||▼ US$18.1 Billion (2008)
Delphi is an automotive parts
company headquartered in Troy, Michigan, USA. Delphi is one of the world's largest
automotive parts manufacturers and has approximately 146,600
employees (18,900 in the United States).
With offices worldwide, the company operates 150 wholly owned manufacturing sites, 44 joint ventures, 53
customer centers and sales offices, and 33 technical centers in 38
- 1994: General Motors forms Automotive Components
- 1995: ACG is renamed Delphi Automotive
- 1997: GM and Hughes
Electronics Corporation spin-off of Hughes
Defense electronics business and transfer Delco
Electronics from Hughes to Delphi.
- 1999: Delphi Automotive Systems becomes fully independent
publicly held corporation.
- 2001: 11,500 jobs were cut worldwide (Bischoff 1A).
- 2002: Delphi Automotive Systems is renamed Delphi
Corporation reflecting its diversified business
- 2004: Delphi is subpoenaed by the Securities & Exchange Commission (SEC)
in July for irregular accounting practices and financial
- 2005: Delphi discloses irregular accounting practices. A number
of executives, including CFO Alan Dawes, resign. Delphi Chairman
J.T. Battenberg III retires. Delphi files for Chapter 11 bankruptcy protection to
reorganize its struggling U.S. operations. As a result of this
action, the Securities and Exchange Commission granted
an application by the New York Stock Exchange to delist
stock and bonds. The
stock now trades over the counter on the Pink Sheets electronic
- 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 the United
States. The eight plants it intends to keep are located in Brookhaven, Mississippi; Clinton,
Mississippi; Grand Rapids, Michigan; Kokomo,
Indiana; Lockport, New York; Rochester,
New York; Warren,
Ohio; and Vandalia, Ohio. Delphi proposes that
these remaining plants will operate with wage reductions and
Corporate structure and
Delphi is structured into the following groups:
- Consumer Products
- Manufacturer Products
- Aftermarket & Dealer Products
The company is focusing the organization on the following core
strategic product lines:
- Controls & Security (Body Security, Mechatronics, and
- Electrical/Electronic Architecture (Electrical/Electronic
Distribution Systems, Connection Systems, and Electrical
- Entertainment & Communications (Audio, Navigation, and
- 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 see Delphi Senior
During 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 company’s future
strategic framework, including:
- The sale of the brake hose manufacturing business in Dayton, Ohio to Harco
Manufacturing Group, announced in January 2007.
- The settlement of a social plan in the "Concurso," or Spanish
insolvency proceeding, of Delphi Automotive Systems Espana
- The sale of the Mexican brake components business, including a
manufacturing plant in Saltillo,
Coahuila, Mexico, to Robert Bosch
LLC and its affiliate Frenados Mexicanos, S.A. de C.V.,
announced in June 2007.
- The sale of substantially all of the assets of MobileAria, Inc.
to Wireless Matrix USA, Inc.;
- The sale of the U.S. Battery operations in New Brunswick, New Jersey to
Controls, Inc. in 2006.
- The wind-down of a Delphi Medical Texas facility in Houston, Texas
- The consolidation of fuel injector production in Rochester,
New York during 2006-2007, which allowed the Debtors to wind
down a manufacturing facility in Coopersville, Michigan
- The sale of the catalyst business to Umicore Group,
completed in October, 2007.
- The sale of the Wheel bearings business based in Sandusky, Ohio to
Kyklos, Inc., which is a wholly owned subsidiary of Hephaestus
Holdings, Inc., in February 2008.
- The sale of the Global Steering and Halfshaft Business to
Steering Solutions Corporation, a wholly owned
subsidiary of Platinum Equity, LLC, announced in
December 2007. The Steering business was based in Saginaw,
Michigan, and was formerly known as the Saginaw
Steering Division of General Motors.
- The sale of the Interiors and Closures business was announced
in October, 2007, to The Renco Group. This includes facilities in:
Alabama, Cottondale, Alabama, North Kansas City,
Missouri, Orion, Michigan, Adrian, Michigan, Woerth, France, Matamoros, Mexico, the SDADS Joint Venture in Shanghai, China and the KDS Joint Venture in Daegu, South Korea.
- The sale of certain North American Brake Component Machining
and Assembly Assets to TRW Automotive Holdings, which
includes sites in Saginaw, Michigan, Springhill,
Tennessee, and Oshawa, Canada, announced in September
- The company will continue with its stated plans to sell or
wind-down additional non-core product lines and manufacturing sites
- Sale of global suspension and brakes business to BeijingWest
announced March 31, 2009.
On November 4, 2009 Delphi named a new board. John
A. Krol is the chairman of the new board.
Rodney O'Neal is the President and chief executive officer of the
(since January 1, 2007), replacing Robert S. "Steve" Miller.
The investment bank, Rothschild, Inc., is currently advising
Delphi in its Chapter 11 restructuring
Researchers at the University of
Massachusetts Amherst identified Delphi corp. as the
21st-largest corporate producer of air pollution in the United States in
According to the study, the manufacturer's most toxic emissions
(542 lb/yr), chromium
compounds (1,082 lb/yr), lead
compounds (8,466 lb/yr), and sulfuric acid (17,600 lbs/year),
while the most massive emissions are glycol ethers (111,520 lbs/year) and
acid (80,000 lb/yr).
In February 2007 the multinational Delphi Automotive Systems
Holding Inc. announced the closure of its plant in Puerto Real, Cádiz, Spain, with a loss of 1600 direct jobs and more
than 2500 indirect jobs.
despite 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.
The Andalusian autonomous government
announced it would begin legal action against the company for
breach of local labor laws.
On October 8, 2005 Delphi filed for bankruptcy due to the lack
of money to pay the employees. 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 Delphi’s 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 of bankruptcy. U.S.
Bankruptcy Judge Robert Drain in New York ruled to allow Delphi to seek
payments through a contract against Appaloosa Management LP as well
as denying investors' request for a cap of $250 million for
Delphi is a major player in the XM Satellite Radio and GPS market. Among
their most widely recognized (and advertised) products are:
- Mobile Navigation
- NAV200 (portable GPS)
- TNR800 (in-dash GPS)
- Mobile Video
- Satellite Radio
- Myfi family
- MyFi (portable XM)
- Myfi 2 (3rd generation of XM2go)
- Roady Family
- Roady (XM)
- Roady 2 (XM)
- Roady XT (XM)
- Roady XT 2 (XM)
- Skyfi Family
- Skyfi (XM)
- SkyFi2 (XM)
- SkyFi3 (XM)
Delphi designs, engineers and manufactures a wide variety of
components, integrated systems and modules on a worldwide basis,
and is the largest and most diversified supplier of automotive
parts. In January 2000 Delphi acquired the diesel systems business
of Lucas TRW, making Delphi the world's second largest manufacturer
of Diesel Fuel Injection equipment. Delphi Diesel owns the brands
of CAV/Simms/RotoDiesel and Condiesel, the division also runs 10 subsidiary distribution
companies in Brazil, China, France, Germany, Italy, Spain,
Mexico, Turkey, UK and USA. The diesel aftermarket company is
headquartered in Warwick UK.
Delphi also manufactures the MagneRide magneto
rheological dampers, which use magnetorheological fluid to
adjust the damping rate of the shock absorbers based on road
conditions, to offer an effective compromise between ride and
These can be found on the Audi
R8 , Audi TT, Chevrolet Corvette C5, Cadillac Seville
STS, Ferrari 599 and select E
Series HSV cars in Australia.
Delphi - Investor Relations -
2008 Form 10-K
SEC delisting order
Delphi Signs Sale Agreement
for Brake Hose Business; Files Motion to Request Hearing With the
Bankruptcy Court. Delphi - Investor Relations - Press Releases.
29 January 2007.
Delphi Signs Agreement to
Sell Mexican Brake Plant, Files Motion to Request Hearing With the
Bankruptcy Court. Delphi - Investor Relations - Press Releases.
15 June 2007.
Delphi Completes Sale of U.S.
Battery Plant to JCI. 02 August 2006.
Delphi Completes Sale of
Catalyst Business to Umicore. 1 October 2007. Delphi - Investor
Relations - Press Releases
Hephaestus Holdings, Inc. to
acquire North American wheel bearings business from Delphi
Corporation. KPS Capital Partners, LP - Press
Delphi Signs Master Sale
Agreement for Its Global Steering and Halfshaft Business -- Files
Motion to Request Hearing With U.S. Bankruptcy Court; Steering
Solutions Corporation, a Wholly Owned Entity of Platinum Equity,
LLC, Is Named Lead Bidder in the Sale of Delphi Corporation's
Global Steering Division. Delphi - Investor Relations - Press
Releases. 10 December 2007.
Delphi Signs Master Sale
Agreement for Interiors and Closures Business -- Files Motion to
Request Hearing With the Bankruptcy Court. Delphi - Investor
Relations - Press Releases. 16 October 2007.
Delphi Signs Asset Sale
Agreement With TRW for Certain North American Brake Component
Machining and Assembly Assets -- Files Motion to Request Hearing
With the Bankruptcy Court. 18 September 2007. Delphi - Investor
Relations - Press Releases.
Delphi Signs Agreement to
Sell Global Suspension and Brakes Business; Company To File Motion
Requesting Court Hearings To Approve Bidding Procedures and
Authorize Sale of Assets. 31 March 2009. Delphi Press
"Delphi Names New Board".
Delphi. http://delphi.com/news/pressReleases/pr_2009_11_04_001/. Retrieved
Leadership". Delphi. http://delphi.com/about/leadership/dsb/. Retrieved
Political Economy Research
Toxic 100 detailed company
report (Toxics Release Inventory)
"Delphi to close Spain
factory, cut jobs", BusinessWeek, February 23, 2007
"Closure of the Delphi
undertaking in Puerto Real, Cádiz", Parliamentary question
submitted by Willy Meyer Pleite MEP to the European Commission
"Zarrías dice que no
permitirá que Delphi 'se ría de Andalucía'", Terra.es, February 23, 2007
""Judge allows Delphi to
pursue claims against investors"". Chicago Tribune.
2008-07-29. http://www.chicagotribune.com/business/chi-tue-brf4-delphi-suit-jul29,0,7303546.story. Retrieved
"Delphi MagneRide" Delphi
"Audi R8 Features Delphi's
Revolutionary MagneRide Semi-Active Suspension" Delphi Press