Delphi Abandons Participation in Shanghai Auto Show to Submit New Reorganization Plan

“The rapid deterioration of the global auto market environment has also affected the Asia-Pacific and Chinese markets. Delphi must focus its efforts on how to respond to changes in the market environment and conduct business activities more fully and effectively in the face of uncertain changes and challenges in the market. Fully affirmed the market impact of the Shanghai Auto Show and hoped to return to the Shanghai Auto Show as a participant and exhibitor in the future.” This is a reply from Delphi China to the reporter. This proves that Delphi's renunciation of attending the Shanghai International Automobile Exhibition in April is a must.

Nowadays, due to poor operating performance, Delphi is also downsizing the world's weight-loss campaigns, including the participation of Shanghai Auto Show from booths, exhibits, and personnel.

On the other side, Delphi’s asset sales work continues. The head of Delphi China’s media confirmed that Delphi did indeed sell off its non-core business. In addition to the successful sale of catalysts and door modules, other non-core business lines including brakes, suspensions, chassis, and steering systems were in All parties buyers negotiate. In the meantime, there are rumors that Beijing Automotive shares will join joint local suppliers and also participate in the acquisition of Delphi's brakes and suspensions in China.

Delphi Corporation is a large-scale auto parts manufacturer that was separated from General Motors in 1999. It once ranked 63rd in the list of Fortune magazine’s 500 large companies in the United States, but has been losing money since it became a public company. State, currently in bankruptcy protection.

Luo Jinling, an automotive parts specialist, analyzed that Delphi's rapid decline was due to the fact that, like other US companies, its high production cost has not been reduced. Second, because the matching relationship is single, Delphi's supporting customers only focus on With the decline of the sales volume of the three major American cars, US auto manufacturers have also experienced sharp reductions in orders from suppliers.

The global financial crisis that erupted in 2008 further deterred Delphi. According to statistics, Delphi’s operating income in 2008 was US$26.16 billion, a year-on-year decrease of 0.9% and a loss of US$3.065 billion.

After Delphi filed for bankruptcy protection in October 2005, rumors of its assets being acquired have persisted. In March 2005, Delphi sold the global automotive battery business to Johnson Controls. In 2007, TRW acquired Delphi's Saginaw (Saginaw) chassis factory. In China, once Wanxiang and Weichai were interested in acquiring some of Delphi’s assets, none of them was subsequently reviewed.

However, Delphi China is still full of confidence in the Chinese market, "Delphi attaches great importance to the Chinese market, the business in China will further develop." Delphi replied.

According to the reporter's understanding, Delphi submitted a new restructuring plan at the end of 2008 three years after the filing of the bankruptcy protection application. Recently, General Motors confirmed that it will exercise its right to acquire Delphi's global steering system business, which will also be a key step in Delphi's current restructuring plan.

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