Delphi unveiled details of a joint venture deal with steering and suspension component producer Teknorot in Turkey that will cater to the supplier's aftermarket customers at this week's EquipAuto show in Paris. Delphi product and service president Lucia Veiga Moretti talked to Simon Warburton at the show about the JV to be known as Allied Steering Technologies and the future for the giant automotive supplier.

j-a: What led you to decide the JV with Teknorot was a good fit for Delphi?

LM: We have [had] a relationship with them for many years. We started to realise we needed to go to the next stage of possibilities and commitments between the two companies.

This is part of a strategy that Delphi has to have control of key product lines. The other thing is taking advantage of the manufacturing expertise this group has. We had a steering business and kept a lot of the engineering background so it is a matter of using that manufacturing.

j-a: What is the key challenge in the aftermarket sector?

LM: One of the biggest issues in aftermarket is you deliver everything OK - when you have a capacity issue it is a problem. We are - with this joint venture - ensuring that the capacity comes because it is now under our control. We don't want to miss a beat.

j-a: What opportunities do you see in Turkey for Delphi?

LM: The reason we did it with them [Teknorot] is obviously we are developing as we are in Turkey and we put a new emphasis in Turkey. We just started to sell more widely in Turkey [and have] launched a training centre over there.

j-a: How else does Delphi see the aftermarket progressing?

LM: We are always looking at opportunities. The growth of diesel is expected to be about 75% [for example]. We are in a very upbeat moment. I am taking over the entire aftermarket for Delphi - I could not come to the business in a better moment for Delphi.

j-a: To what extent does the Delphi board consider the aftermarket as a key element of its strategy?

LM: The Delphi board wants to grow the aftermarket first. You can see the level of importance the board gives to aftermarket - there is no doubt there is a business they are looking to grow.

Before, we were not necessarily making sure the product we were making for a specific customer could be sold in the aftermarket. Now, at the moment the product is being developed or when you are talking to the OE customer, we will talk about the aftermarket.

Our commitment is to bring original equipment technology that Delphi manufactures to the aftermarket.

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