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Atul Prakash
Detroit, Mar 3: The $28-billion auto component manufacturer, Delphi Automotive Systems, has attracted business worth over $600 million from companies other than General Motors, its parent company.
Delphi, the world's largest auto component supplier, has bagged long-term contracts from Navistar International, "Man" and two other major automotive manufacturers to supply modular doors worth over $550 million, Delphi's chairman and president JT Battenberg III told newspersons here at a press conference.
Daewoo has also awarded the company a $35 million contract for providing "ABS" and integral wheel spindle bearings, Battenberg said. It has also got orders from Volkswagen to supply steering wheel and driver airbag modules worth $20 million, he added. These orders are quite significant from the company's point of view as it is in the process of being independent from General Motors (GM) so that it could attract more business from the non-GM companies. Recently GM, in its bid to make Delphi independent,offloaded about 18 per cent shares of the company by the way of an initial public offering (IPO).
The offering was priced at $17 dollar per share at the New York Stock Exchange. While General Motors continues to hold over 80 per cent shares of Delphi, it intends to distribute the remaining shares to GM shareholders later this year.
Currently, about 38 per cent of Delphi's business comes from non-GM companies and the company targets to reach the 50 per cent level by the end of 2002.Delphi is counting on its 15,000 engineers to design advanced electronic systems to control and improve vehicle functions for automakers. (PTI)
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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