DELPHI 2013 Annual Report Download - page 29

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7
Standardization of Sourcing by OEMs
Many OEMs are adopting global vehicle platforms to increase standardization, reduce per unit cost and increase capital
efficiency and profitability. As a result, OEMs are selecting suppliers that have the capability to manufacture products on a
worldwide basis as well as the flexibility to adapt to regional variations. Suppliers with global scale and strong design,
engineering and manufacturing capabilities, are best positioned to benefit from this trend. OEMs are also increasingly looking
to their suppliers to simplify vehicle design and assembly processes to reduce costs. As a result, suppliers that sell vehicle
components directly to manufacturers (Tier I suppliers) have assumed many of the design, engineering, research and
development and assembly functions traditionally performed by vehicle manufacturers. Suppliers that can provide fully-
engineered solutions, systems and pre-assembled combinations of component parts are positioned to leverage the trend toward
system sourcing.
Shorter Product Development Cycles
As a result of government regulations and customer preferences, OEMs are requiring suppliers to respond faster with new
designs and product innovations. While these trends are more prevalent in mature markets, the emerging markets are advancing
rapidly towards the regulatory standards and consumer preferences of the more mature markets. Suppliers with strong
technologies, robust global engineering and development capabilities will be best positioned to meet OEM demands for rapid
innovation.
Products
Our organizational structure and management reporting support the management of these core product lines:
Electrical/Electronic Architecture. This segment offers complete electrical and electronic architectures for our customer-
specific needs that help reduce production cost, weight and mass, and improve reliability and ease of assembly.
• High quality connectors are engineered primarily for use in the automotive and related markets, but also have
applications in the aerospace, military and telematics sectors.
• Electrical centers provide centralized electrical power and signal distribution and all of the associated circuit
protection and switching devices, thereby optimizing the overall vehicle electrical system.
• Distribution systems, including hybrid high voltage and safety systems, are integrated into one optimized vehicle
electrical system that can utilize smaller cable and gauge sizes and ultra-thin wall insulation (which product line
makes up approximately 36% of our total revenue for the year ended December 31, 2013).
Powertrain Systems. This segment offers high quality products for complete engine management systems (“EMS”) and
products to help optimize performance, emissions and fuel economy.
• The gasoline EMS portfolio features fuel injection and air/fuel control, valvetrain, ignition, sensors and actuators,
transmission control products, and powertrain electronic control modules with software, algorithms and calibration.
• The diesel EMS product line offers high quality common rail fuel injection system technologies including diesel
injection equipment, system integration, calibration, electronics, and emission control solutions.
• The Powertrain Systems segment also supplies integrated fuel handling systems for gasoline, diesel, flexfuel and
biofuel configurations, and innovative evaporative emissions systems that are recognized as industry-leading
technologies.
We also include aftermarket and original equipment service in the Powertrain Systems segment.
Electronics and Safety. This segment offers a wide range of electronic and safety equipment in the areas of controls,
security, infotainment, communications, safety systems and power electronics.
• Electronic controls products primarily consist of body computers and security systems.
• Infotainment and driver interface portfolio primarily consists of receivers, MyFi reception systems, digital receivers,
satellite audio receivers, navigation systems, displays (including re-configurable displays) and mechatronics.
• Passive and active safety electronics primarily includes occupant detection systems, collision warning systems,
advanced cruise control technologies, collision sensing and auto braking.
• Electric and hybrid electric vehicle power electronics comprises power modules, inverters and converters and battery
packs.