Automotive News Europe - December 2019 - 20

AUTOMOTIVE NEWS EUROPE

COVER STORY

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Delphi Technologies CEO leads supplier through 'generational' changes

R

money-losing gasoline business until we
get our orders above fixed costs. We have
committed publicly that we are going to be
profitable in our gasoline business by the
end of fourth quarter 2020.

ick Dauch is helping to guide Delphi Technologies through two major
changes: the decline of diesel engines in
favor of gasoline powertrains, especially
in Europe, and the shift toward electrification to meet increasingly tough global
emissions standards. Dauch, who joined
the supplier in January from wheel component maker Accuride, also has to help
the former powertrain arm of Delphi Automotive to continue to adapt in just its
second year as a stand-alone company.
Dauch spoke with Automotive News Europe Correspondent Peter Sigal about
those challenges and more.
How is Delphi Technologies managing the transition to electrification?
To step back a little bit, as part of the
spinoff from Delphi Automotive, we got
to keep the U.S. technical center in Kokomo, Indiana, which is the mothership
for electrification programs. A lot of our
engineers are there. But Aptiv [a new
company formed from Delphi Automotive's non-powertrain units] retained all
the electronics factories, except for one
in Singapore, which we share. So we
needed new plants. We are building one
in Suzhou, China, and we are refurbishing one in Reynosa, Mexico. We have
built an addition to our plant in Blonie,
Poland, which will build electronic control units. As part of that, we have to
train all the people we are hiring to run
the equipment.
Are you a customer of Aptiv?
We are still buying some products from
Aptiv as part of our spinoff agreement,
until our plants are built, equipped,
staffed and qualified. We are in the last
phase of that. All the plants will be fully
on their own by Christmas, except Blonie, which will be on its own by April
1, 2020. We are going through qualifications with dozens of customers.
Diesels are losing share to gasoline
engines. How are you handling that?
The shift from diesel to gasoline engines
is absolutely real, and we can't get there
fast enough. It's a generational technology change. We have been making diesel
engine components for decades, and that
was really the backbone of the company.
That business is dropping at a rate of

20

www.autonewseurope.com

What is the breakdown between internal combustion and electrification
components?
The fastest-growing business we have
in terms of bookings is in power electronics. In 2017, the split was about
60 percent internal combustion engine
components versus electronics and
electrification. In 2018, it was almost
50-50, and in the first half of this year
it was about two-thirds electronics and
electrification and one-third internal
combustion engine components.

Meet the boss
❚ NAME: Richard F. Dauch
❚ TITLE: Delphi Technologies CEO
❚ AGE: 58
❚ MAIN CHALLENGE:

Managing the dual transitions
from diesel to gasoline and
from internal combustion
to electrification.

20 percent to 25 percent a year at all the
big suppliers and all the big car companies. We have invested more than half a
billion dollars in 2018 and 2019 to refit
plants around the world. We are installing capacity to produce more gasoline
components to meet the needs of our
customers as they shift from diesel to
gasoline. We are also investing in electronics and electrification capacity, and
we have closed factories in La Rochelle,
France; Barcelona, Spain; and Liverpool,
England. So we think we are out ahead
of our competition a little bit in terms of
getting the manufacturing footprint right.
Has this affected your bottom line?
It drags on our financials a little bit because
we have gone from a profitable diesel business to a weakening diesel business to a

We are seeing global markets, especially the U.S. and Europe, diverge
more than ever on emissions and
consumer preferences. How is Delphi
Technologies adapting?
Our chief scientist monitors all the different regulations in major regions of
the world, whether that's the move from
Euro 5 to Euro 6; or U.S. standards versus California standards; or China 5 to
China 6. We have created what we call a
Technology Council. We bring that information here, and ask ourselves, based
on the regulations and the feedback we
have from our customers about their
production cycles, where do we put our
r&d money and our capital expenditures?
It has been almost two years since
Delphi Technologies became a standalone company. What effect has that
had on culture and operations?
Delphi Technologies became a publicly
traded company on Day 1 (after the
spinoff from Delphi Automotive), and
we have had some growing pains. It's a
cultural change that we are not part of
the old General Motors or the old Delphi
Automotive. There are different expectations on a stand-alone company rather
than a division of a larger company. And,
as GM and Delphi Automotive got smaller, some assets got left behind. We became the proud owner of some of those
assets. So we have some overhead costs
we have to address, which is a little bit
painful. But we are getting there. ANE

DECEMBER 2019


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Automotive News Europe - December 2019

Table of Contents for the Digital Edition of Automotive News Europe - December 2019

Contents
Automotive News Europe - December 2019 - Intro
Automotive News Europe - December 2019 - Cover1
Automotive News Europe - December 2019 - Cover2
Automotive News Europe - December 2019 - 3
Automotive News Europe - December 2019 - Contents
Automotive News Europe - December 2019 - 5
Automotive News Europe - December 2019 - 6
Automotive News Europe - December 2019 - 7
Automotive News Europe - December 2019 - 8
Automotive News Europe - December 2019 - 9
Automotive News Europe - December 2019 - 10
Automotive News Europe - December 2019 - 11
Automotive News Europe - December 2019 - 12
Automotive News Europe - December 2019 - 13
Automotive News Europe - December 2019 - 14
Automotive News Europe - December 2019 - 15
Automotive News Europe - December 2019 - 16
Automotive News Europe - December 2019 - 17
Automotive News Europe - December 2019 - 18
Automotive News Europe - December 2019 - 19
Automotive News Europe - December 2019 - 20
Automotive News Europe - December 2019 - 21
Automotive News Europe - December 2019 - 22
Automotive News Europe - December 2019 - 23
Automotive News Europe - December 2019 - 24
Automotive News Europe - December 2019 - 25
Automotive News Europe - December 2019 - 26
Automotive News Europe - December 2019 - 27
Automotive News Europe - December 2019 - 28
Automotive News Europe - December 2019 - 29
Automotive News Europe - December 2019 - 30
Automotive News Europe - December 2019 - 31
Automotive News Europe - December 2019 - 32
Automotive News Europe - December 2019 - 33
Automotive News Europe - December 2019 - 34
Automotive News Europe - December 2019 - 35
Automotive News Europe - December 2019 - 36
Automotive News Europe - December 2019 - 37
Automotive News Europe - December 2019 - 38
Automotive News Europe - December 2019 - Cover3
Automotive News Europe - December 2019 - Cover4
Automotive News Europe - December 2019 - SCover1
Automotive News Europe - December 2019 - SCover2
Automotive News Europe - December 2019 - S3
Automotive News Europe - December 2019 - S4
Automotive News Europe - December 2019 - S5
Automotive News Europe - December 2019 - S6
Automotive News Europe - December 2019 - S7
Automotive News Europe - December 2019 - S8
Automotive News Europe - December 2019 - S9
Automotive News Europe - December 2019 - S10
Automotive News Europe - December 2019 - S11
Automotive News Europe - December 2019 - S12
Automotive News Europe - December 2019 - S13
Automotive News Europe - December 2019 - S14
Automotive News Europe - December 2019 - S15
Automotive News Europe - December 2019 - S16
Automotive News Europe - December 2019 - S17
Automotive News Europe - December 2019 - S18
Automotive News Europe - December 2019 - S19
Automotive News Europe - December 2019 - S20
Automotive News Europe - December 2019 - S21
Automotive News Europe - December 2019 - S22
Automotive News Europe - December 2019 - S23
Automotive News Europe - December 2019 - S24
Automotive News Europe - December 2019 - S25
Automotive News Europe - December 2019 - S26
Automotive News Europe - December 2019 - S27
Automotive News Europe - December 2019 - S28
Automotive News Europe - December 2019 - S29
Automotive News Europe - December 2019 - S30
Automotive News Europe - December 2019 - S31
Automotive News Europe - December 2019 - S32
Automotive News Europe - December 2019 - S33
Automotive News Europe - December 2019 - S34
Automotive News Europe - December 2019 - S35
Automotive News Europe - December 2019 - S36
Automotive News Europe - December 2019 - S37
Automotive News Europe - December 2019 - S38
Automotive News Europe - December 2019 - S39
Automotive News Europe - December 2019 - S40
Automotive News Europe - December 2019 - S41
Automotive News Europe - December 2019 - S42
Automotive News Europe - December 2019 - SCover3
Automotive News Europe - December 2019 - SCover4
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