Delphi creates independent Powertrain company; four Mexican plants involved
Delphi Corp., one of the biggest auto suppliers globally, plans to separate its Powertrain program into a publicly traded company with revenue of US$ 4.5 billion a year. Once the transaction is completed, by March 2018, Delphi shareholders will own shares of both companies.
The move is part of a wider Delphi’s strategy to focus on developing technology for electrically powered and self-driving vehicles.
“Today’s announcement represents an exciting opportunity for our businesses by creating two independent companies, each with a distinct product focus, a proven business model, and the flexibility to pursue accelerated investments in advanced technologies that solve our customers’ most complex challenges,” said Kevin Clark, president and chief executive officer.
Delphi’s Powertrain division is a global technology developer focused on optimizing vehicle propulsion systems by enhancing environmental efficiency and vehicle performance.
The company supplies products to original equipment manufacturers and aftermarket customers with 20,000 global employees, 5,000 engineers and revenues of approximately US$ 4.5 billion in 2016.
Powertrain’s portfolio of advanced propulsion technologies benefits from increasingly stringent regulatory standards and consumer demands for increased fuel economy and reduced CO2 emissions.
This business unit operates four production facilities in Mexico, located in the cities of Juarez, Chihuahua, Torreon and Saltillo.
Timothy Manganello, currently an independent Director on the Delphi Board, will become non-executive chairman of the new Powertrain company’s board of directors upon separation.
Manganello was most recently Chairman of the Board and Chief Executive Officer of BorgWarner, Inc. Liam Butterworth, currently senior vice president and president, Powertrain Systems, will become president and chief executive officer of the new entity.
Delphi warned there can be no assurance regarding the timing of the spin-off or its completion due to regulatory hurdles. Powertrain intends to have its ordinary shares listed on the New York Stock Exchange.