Delphi Switches Focus to EV and Autonomous Tech, Splits into Two Companies

Delphi's automated car in NYC 1 photo
Photo: Delphi
If there are still those who don't believe the electric cars are coming, just tell them that Delphi, one of the largest manufacturers of automotive parts in the world, has just decided to focus its attention on the EV market and the autonomous driving tech.
Delphi became a stand-alone company in 1999 after breaking off from General Motors, and it's been one of the big names in the industry ever since. Now, it plans to spin off its powertrain division into an independent company, but it's unclear which of the two will get to keep the name at the moment.

The powertrain branch is currently worth around $4.5 billion and employs 25,000 people globally. The split is believed to happen around this time next year, and the news was received positively by the stock market where Delphi shares went up by 10.9 percent for a closing value of $87.01 yesterday.

As for the name conundrum, nothing has been decided yet. “I do like the Delphi name. We have created a lot of value for customers, a lot of value for shareholders so there is value in that name," Delphi CEO Kevin Clark told Detroit Free Press. "We just think as a management team that given what we are going through, someone is going to have to have a new name ... I quite frankly don’t have a preference one way or the other.”

One simple solution would be to keep the Delphi name in both companies and simply add a relevant suffix for each of the two. But we're sure there are much more competent men already on the job, so need to bother our heads with this.

In later years, Delphi has been investing heavily in autonomous technology and has acquired a total of 11 smaller enterprises which specialize in this field. They will remain as part of the core electrical and electronics divisions that have an annual revenue of over $12 billion.

This move signals the growing weight that the electric propulsion and autonomous driving gear and software have in the automotive world and we should expect other similar companies to follow this example one way or another over the coming years.
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About the author: Vlad Mitrache
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"Boy meets car, boy loves car, boy gets journalism degree and starts job writing and editing at a car magazine" - 5/5. (Vlad Mitrache if he was a movie)
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