What brand is Aptiv? Delphi told you

Overview: A new brand has emerged in the automotive industry: Aptiv, and its scale has not been small since its release. Many friends cannot help but ask, whose automotive industry brand is this and why is it so big? Linkconn. CN editor tells you, don't be alarmed, Aptiv is the famous Delph。

Recently, a new brand has emerged in the automotive industry: Aptiv, and its scale is not small. Many friends cannot help but ask, whose automotive industry brand is this and why is it so big? The editor of LinkCon. cn tells you, there's no need to be shocked. Aptiv is the brother of the famous Delphi.

There was news in May 2017 that Delphi was about to spin off. 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 Las Vegas CES 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 also officially take effect.

How will the two companies divide their labor after the split?

The most concerning topic for everyone regarding the spin off of the company is undoubtedly what business each of the two spin off companies will be responsible for in the future. Delphi's plan is as follows:

Aptiv: composed of the original electronic and security and electronic/electrical architecture business segments, will focus on accelerating the commercialization process in areas such as active safety, autonomous driving, improved driving experience, and connectivity services, and provide the "brain" and "nerve" of vehicles with the necessary software, advanced computing platforms, and network architecture 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.

Simply put, Aptiv will mainly focus on cutting-edge innovation areas in the automotive industry, including advanced driving assistance, autonomous driving, in car connectivity, and more. This is not just about hardware business, but more importantly, new businesses such as software and services.

As for "Delphi Technology", in fact, Delphi's powertrain business has always been quite important. Despite the continuous advancement of automotive technology, those seemingly "traditional" businesses cannot be ignored, so it is reasonable to become an independent company.

Why split up?

After discussing the business plans for the two spin off companies, let's analyze why Delphi made this decision.

1. Power driven autonomous driving

Nowadays, everyone knows that autonomous driving is extremely important for the future. For Delphi, who has accumulated some experience in this field, how can they better develop their autonomous driving research and business? From this spin off, we finally found the answer.

Last August, Delphi announced a partnership with Mobileye, where the two companies planned to jointly develop a complete solution for autonomous driving based on the L4-L5 standard. At the CES earlier this year, the two companies also brought their jointly developed autonomous driving platform "CSLP". According to Delphi's plan, they expect the CSLP platform to be installed on production vehicles in 2019.

In May of this year, Delphi announced directly joining the autonomous driving camp formed by BMW, Intel, and Mobileye, providing BMW with a self-developed prototype computing platform. In addition, Delphi also collaborates with Intel and Mobileye in the field of vision, sensors, and high-performance computing platforms.

And last week, they reached a cooperation agreement with BlackBerry, preparing to use BlackBerry's QNX system in their own CSLP platform.

The reason for mentioning these is to let everyone know that compared to other suppliers, Delphi's layout in the field of autonomous driving is not at all inferior, and even has some leading advantages. In addition to the aforementioned collaborations, they have also made acquisitions or investments in startups such as Ottomatika, an autonomous driving software company, and Quanergy, a solid-state LiDAR company.

Choosing to dismantle "Aptiv" at this time indicates Delphi's determination to deepen its focus on autonomous driving. In addition, the business under the responsibility of this new company will also become a core growth point in the future, laying the groundwork for Delphi to complete its business transformation in advance. So, in the future, when you see news about autonomous driving from Delphi again, it is likely that the name "Aptiv" will appear.

2. Obtaining 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, with Aptiv (Anbofu) using "APTV" as the trading code and Delphi Technology using "DLPH" as the trading code. Seeing this, we also seem to understand some things. Delphi's decision to split itself into two companies seems to be in order to obtain better capital feedback. After all, while emerging businesses are growing rapidly, the growth trend of traditional businesses is slowing down. After splitting into two companies, Aptiv (Ampofour) will not be disturbed by Delphi Technology in terms of market value, and investors have also reduced a lot of resistance when making decisions.

In addition, 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 can be made directly based on their respective needs. In this way, the efficiency of cooperation between the two spin off companies and the outside world will be further improved.

3. Two companies are more conducive to shaping different corporate images

From another perspective, Delphi's split of the company into two also serves as a demonstration for other suppliers. Faced with the trend of technological advancement in the automotive industry, it is more advantageous to split into two companies to shape the corporate image. One company can maintain its technological image, while the other company can continue to expand its business in the traditional automotive field. The two companies do not form a direct competitive relationship with each other while satisfying different markets, which is also a manifestation of differentiation strategy.

Faced with the continuous popularity of fields such as autonomous driving and electric vehicles, more and more suppliers are also beginning to realize that in addition to the product level, they must also innovate and think strategically.

If we summarize the Delphi spin off incident, I think we should understand it this way. Faced with the special moment when the automotive industry is about to transform, Delphi chooses to use the optimal resource allocation method to solve this problem. Therefore, timely adjustments at the strategic level have become inevitable, and as for whether the splitting of the company can achieve the effect of "1+1>2", I'm afraid everyone is waiting.

From a supplier strategic perspective, Delphi's spin off of the company will also become a milestone. To some extent, this time they have driven other supplier giants to engage in more thinking.