Delphi is planning a major onslaught of the European market, after it has been reorganised.
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Speaking with dpa-AFX news at the IAA truck show in Hannover, Guy Hachey, recently appointed president of Delphi Europe, said, “We see big growth potential in Europe and we want to almost double our turnover to EUR10bn.”
Europe currently accounts for around 20% of Delphi’s total turnover but this could grow to 30%, Hachey said.
He identified major growth areas in electronics equipment such as satellite radios, navigation systems, safety systems and fuel injection systems.
Hachey said he was optimistic that Delphi would be able to come out of Chapter 11 bankruptcy protection in the summer 2007, adding that negotiations with unions over the reduction of more than 25,000 jobs and lowering employment costs are well advanced. The main remaining sticking point is pensions.
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By GlobalDataDelphi wants to focus its business on five business areas and produce products in sectors where it is one of the top three leading suppliers globally.
These business areas are electronics, communications systems, HVAC, powertrain technologies and the aftermarket.
Delphi is planning to sell its interiors business, as well as suspensions and steering systems businesses.
“We think we will have sold off our non-core businesses by the end of 2008,” said Hachey.
Hachey recently succeeded Volker Bartch as president of Delphi Europe, Middle East and Africa, according to dpa-AFX. Barth has retired.
Hachey will also continue also to head up Delphi Powertrain. By bundling the responsibilities for a region and for an important business area, Delphi is hoping to get closer to its customers. It will transfer the global headquarters of the powertrain division to Luxembourg.
Hachey said that around 20-25% of Delphi’s European business comes from the powertrain division.
European orders were worth EUR6.4bn in the first nine months of the year, up from EUR5.5m in the same period a year ago. In particular Delphi has been particularly successful in truck components, where sales have grown at an average annual rate of 15% in the last three years.
