Delphi and BAIC Open JV in Beijing

JV links Delphi’s technology expertise with BAIC’s manufacturing presence to tap growing China auto safety market

Beijing, China — Today Delphi Corporation and Beijing Automotive Industry Holding Company Ltd. (BAIC) celebrated the opening of their joint venture which manufactures seat belts.

Located in Changping District, Beijing, the Beijing Delphi Automotive Safety Products Co., Ltd., manufacturing facility has 1,800 square meters of floor space..

The joint venture started production two months ago for customers in the China market and has secured future production contracts in the European markets.

The cooperation between Delphi and BAIC addresses growing market demand for safety products in China and throughout Asia, according to Beth Schwarting, Safety Systems product business unit executive at Delphi Electronics & Safety Division. “This joint venture will allow Delphi to leverage our innovative safety technologies and lean manufacturing expertise with BAIC’s China manufacturing presence to build a foundation for growth,” she stated.

“This cooperation is an important development for the auto parts industry in Beijing. The adding of a safety products plant to the portfolio of Beijing’s auto industry is a significant contribution to the construction of auto parts platform, and to complete the auto industry chain in Beijing,” said BAIC’s deputy general manager and head of the Parts & Components Group, Guo Xinmin. “BAIC has several OEMs within its organization, and by collaborating with Delphi and other multinational companies, BAIC expects to strengthen its competitiveness and brand image in the China market. We are confident that this cooperation will be a win-win for BAIC and Delphi.”

The joint venture will enable Delphi and BAIC to more effectively serve the rapidly developing Asia Pacific market and to support global customers with operations in Asia Pacific and other regions.

“The Delphi/BAIC business venture will help Delphi support the growth in safety related products in China and other regions,” said Daniel Salmons, Asia/Pacific managing director for Delphi Electronics & Safety Division. “We are very excited to team with BAIC to provide quality products and services for our global customers.”

The China market for safety related products is expected to continue to grow rapidly since Chinese regulators are calling for enhanced safety features for all vehicles. In 2005, rear seat belts were made a standardized feature for light-duty passenger vehicles and China is implementing light commercial vehicle requirements that follow European guidelines.

Delphi Corporation is a world leader in mobile electronics and transportation components and systems technology. For more than 100 years, Delphi has had a proven track record innovating automotive technology such as the first production of airbags.

Delphi started operation in China in 1993. Today Delphi’s investment in China has reached more than US$500 million, and the company has set up 17 legal entities in China.

Pioneering the auto industry in Beijing 50 years ago, BAIC now has grown into an industry group with capacity ranging from vehicle manufacturing, vehicle equipping to asset management. BAIC boasts strong competitive edge in vehicles and auto parts manufacturing, with four OEMs under its organizational structure: BAIC Foton, Beijing Hyundai, Beijing Benz-Dymler Chrysler and Beijing Automotive Co., Ltd.