There was news in May 2017 that Delphi was going to split up. On September 28th, they officially announced the naming of the two companies after the spin off. They are "Aptiv" and "Delphi Technology" respectively.
At the CES in Las Vegas in January 2018, both companies will make simultaneous appearances and unveil their new brand images. According to their expectations, the spin off plan will be completed by the end of March next year, and the naming of the new company will take effect.
How will the two companies divide their work after the spin off?
The topic of concern for everyone regarding the spin off of the company must be what business each spin off company will be responsible for in the future. Delphi's plan is as follows:
Aptiv: Composed of the original Electronic and Safety and Electronic/Electrical Architecture business segments, it will focus on accelerating the commercialization process in areas such as active safety, autonomous driving, enhanced driving experience, and connected services, and provide the "brain" and "nerves" of vehicles such as software, advanced computing platforms, and network architecture needed to achieve these goals.
Delphi Technology: formerly known as Delphi Powertrain Business Unit. This company will focus on providing more advanced propulsion systems for automobiles through internal combustion technology, software and control, and electrification. The reason why the name still includes "Delphi" is because they want to better leverage the historical advantages of the "Delphi" brand in the OEM and after-sales markets.
Aptiv will mainly focus on cutting-edge innovation in the automotive industry, including advanced driving assistance, autonomous driving, in car connectivity, and more. It is not just about hardware business, but more importantly, new businesses such as software and services.
Delphi Technology ", in fact, Delphi's powertrain business is important, and automotive technology is advancing rapidly. However, those seemingly" traditional "businesses cannot be ignored, so it is only natural to establish an independent company.
Why split?
Let's analyze why Delphi made this decision regarding the business planning of the two spin off companies.
1. Empower autonomous driving
It is now known that autonomous driving is important for the future. For Delphi, which has accumulated some experience in this field, how can it better develop its autonomous driving research and business? From this split, we finally found the answer.
Last August, Delphi announced a partnership with Mobileye, and the two companies planned to jointly develop a complete set of autonomous driving solutions for the L4-L5 standard. At CES earlier this year, the two companies also showcased their collaborative autonomous driving platform "CSLP". According to Delphi's plan, they expect the CSLP platform to be installed in production vehicles in 2019.
In May of this year, Delphi directly announced its joining the autonomous driving camp formed by BMW, Intel, and Mobileye, providing BMW with a self-developed prototype computing platform. In addition, Delphi is also conducting joint research and development with Intel and Mobileye in the fields of vision, sensors, and high-performance computing platforms.
Last week, they reached a cooperation agreement with BlackBerry to use BlackBerry's QNX system in their CSLP platform. I just want everyone to know that compared to other suppliers, Delphi has some leading advantages in the field of autonomous driving. The above cooperation has also involved acquisitions or investments in start-up companies such as Ottomatika, an autonomous driving software company, and Quanergy, a solid-state LiDAR company.
Choosing to spin off 'Aptiv' at this time indicates Delphi's determination to delve deeper into autonomous driving. Additionally, the business that this new company is responsible for will become a core growth point in the future, laying the groundwork for Delphi to complete its business transformation in advance. In the future, when people see news about autonomous driving from Delphi, it is very likely that the name "Aptiv" will appear.
2. Obtain better feedback from the capital market
According to Delphi's plan, the two spin off companies will continue to go public independently in the future. Aptiv (Anbofu) will use "APTV" as its trading code, while "Delphi Technology" will use "DLPH" as its trading code. We also seem to understand some things, Delphi's decision to split itself into two companies seems to be to obtain better capital feedback. The growth trend of emerging businesses has slowed down despite their rapid growth. After being split into two companies, Aptiv (Anbofu) will not be disturbed by "Delphi Technology" in terms of market value, and investors have also reduced a lot of resistance when making decisions.
After the establishment of Aptiv and Delphi Technology, other companies will also find it easier to seek cooperation. There is no longer a need to cooperate with Delphi Group as in the past, and decisions are made directly based on their respective needs. The efficiency of the two spin off companies reaching cooperation with the outside world will also be further improved.
3. Two companies are conducive to shaping different corporate images
From another perspective, Delphi's decision to split the company into two sets an example for other suppliers. Faced with the trend of technological transformation in the automotive industry, splitting two companies is more advantageous for shaping the corporate image. One company can maintain its technological image, while the other can continue to expand its business in the traditional automotive field. The two companies, while catering to different markets, do not form a direct competitive relationship with each other, which is also a manifestation of differentiation strategy.
