Delphi Automotive

Delphi Automotive PLC is an automotive parts
manufacturing company headquartered in Gillingham, Kent, UK. It is one of the world’s largest automotive
parts manufacturers and has approximately 161,000 employees, of whom around 5,000 are
in the United States. With offices worldwide, the company operates
126 wholly owned manufacturing sites, and 15 technical centers across 32 countries. History
1994: General Motors formed Automotive Components Group. 1995: ACG was renamed Delphi Automotive Systems. 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 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. 2002: Delphi Automotive Systems was renamed
Delphi Corporation reflecting its diversified business direction. 2004: Delphi was subpoenaed by the Securities
& Exchange Commission 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 Chairman J.T. Battenberg 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 Delphi’s
common stock and bonds. The stock traded over the counter on the Pink
Sheets electronic 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 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 workforce reductions. February 2007: Delphi 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 €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. 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 damages. 6 October 2009: Delphi’s 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 to General Motors Company, the successor to the bankrupt Motors Liquidation Company
that used to be the old General Motors Corporation. The stock was cancelled. The old Delphi Corporation was renamed DPH
Holdings Corporation. Chapter 11 reorganization
During the Chapter 11 cases, Delphi made substantial progress in identifying and implementing the
sale 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 S.L. 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 Johnson 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 Renco 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 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, Spring Hill, Tennessee, and Oshawa, Canada, announced in September 2007. 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 new General Motors Company was announced on 3 August 2009. Delphi Thermal Systems, Powertrain, Powertrain
Systems Grand Rapids, and Electronics and Safety became part of GM Components Holdings
LLC, a subsidiary of GM. Delphi Steering, two regional engineering
centers, and 15 manufacturing locations in Mexico, Brazil, Europe, India, China, and
Australia became part of GM Global Steering Holdings LLC, also a subsidiary of GM. Sale of global suspension and brakes business
to BeijingWest announced 31 March 2009. BWI Group commenced 1 November 2009. Operations
Delphi has four diversified business segments: Electrical/Electronic Architecture provides
complete vehicle electrical architecture systems, integrating wiring and cable assemblies, electrical
centers and connection systems. Electronics & Safety provides components,
systems and software for both passive and active safety, security, comfort and infotainment,
as well as other vehicular electronic controls. Powertrain Systems provides integrated gasoline
and diesel engine management systems, including fuel handling, valve train fuel injection,
combustion controls, electronics, and a complete line of aftermarket products and services. Thermal Systems provides powertrain cooling
via heat exchanger systems as well as heating, ventilation and air-conditioning systems for
the occupant cabin. Controversies
On 4 March 2005, Delphi said it had fired its CFO and would restate earnings between
1999, when Delphi spun off from General Motors Corp.(GM), and 2004 for improper reporting
of rebates, credits, or other payments from suppliers. In June, 2006, Delphi said in a filing that
it would restate its 2005 report, which would increase Delphi’s reported 2004 net loss by
$65 million. In 2013, Delphi became involved in an ongoing
lawsuit against GM, because it manufactures ignition switches for the Chevrolet Cobalt,
whose original design is alleged to be defective. Joint ventures
EnerDel – started as a joint venture of Ener1 and Delphi. In August 2008, Ener1 bought exclusive ownership
of EnerDel. Condumex -.
Senior management On 4 November 2009, Delphi named a new board
with John A. Krol as the chairman. Rodney O’Neal is the President and chief executive
officer of the company. Environmental record
Researchers at the University of Massachusetts Amherst identified Delphi corp. as the 21st-largest
corporate producer of air pollution in the United States in 2002. According to the study, the manufacturer’s
most toxic emissions included asbestos, chromium compounds, lead compounds, and sulfuric acid,
while the most massive emissions were glycol ethers and hydrochloric acid. References External links
Delphi website SEC Litigation Release
Slate article on bankruptcy DPH Holdings Corporation, the website for
the old Delphi Corporation which now concerns its bankruptcy case.