The former Troy, US-based automotive suppliers is taking another step on its restructuring path that was initiated years ago, with Germany’s Mahle agreeing to purchase the former’s automotive heating and cooling business.
Mahle should pay around $700 million in a transaction that will effectively be the swan song of CEO Rodney O’Neal, set to retire on March 1. In another related purchase, Mahle GmbH will also buy Shanghai Delphi Automotive Air-Conditioning System for an unknown amount. Mahle has moved to position itself among the leaders in the global heating and cooling segment, while Delphi continues to focus on the “safe, green and connected” high tech areas that CEO O’Neal believes are “just going to get hotter.” “Much of Delphi’s success lies not just in what we did, but in what we did not do,” O’Neal commented. “You have to be relevant to be successful.” Last year, Delhpi posted $17 billion in sales, climbing from $15.5 billion in 2013 – the thermal unit made up $1.6 billion in sales using 13 locations and employing 6,700 people.
The share price of Delphi Automotive Plc, which used to be headquartered in Troy, the United States and is now based in the United Kingdom, has seen a tremendous jump – quadrupling since the company’s initial public offering in 2011. Delphi, once parented by General Motors experienced an epic bankruptcy back in 2005 that took a toll on communities, unions and the pensions of salaried retirees. But now the global supplier has been reshaped into one that offers 33 product lines, has 141 manufacturing locations in 33 countries and a workforce of 160,000 people.