Apr 03, 2001 Delphi Automotive Systems (NYSE: DPH) has announced purchase of the Vehicle Switch/Electronics Division of Eaton Corp. (NYSE: ETN) for US$300 million. The acquisition, which is expected to be financially accretive in its first year of ownership, immediately ranks Delphi among the top switch suppliers in the world, and positions the company to expand its switch business sales in automotive and other market segments.
"We are very excited about this addition to the Delphi team," said James A. Spencer, president, Delphi Packard Electric Systems and Delphi executive vice president. "With these combined resources and customer base, Delphi Packard Electric is now the world's third-largest automotive switch producer and a market leader in mechatronic devices. I believe that we have a winning combination of switch technology and electronics expertise to aggressively grow this segment of our business."
Delphi announced its intent to purchase the VS/ED last month, which adds extensive switch technology to Delphi's portfolio and brings a solid book of business to Delphi's bottom line. Together, these factors will allow Delphi to offer new product solutions to its global customers and the potential for solid gains in market share. The acquisition also provides a platform for Delphi to apply its exclusive license agreement of Duraswitch' technology in the automotive industry.
The acquired unit employs approximately 3,850 employees worldwide, including more than 200 engineers at manufacturing facilities in Germany, Spain, Poland, Mexico and Brazil, and engineering facilities in the United States, France and Germany.
In conjunction with today's announcement, German native Lothar Veeser is named business line executive of Delphi Mechatronic Systems and will oversee Delphi's complete switch and mechatronic product portfolio. Veeser, who has extensive international automotive engineering, management, marketing and sales experience, was most recently general manager of Eaton's VS/ED.
In India, Delphi Automotive Systems Limited has been operating as a wholly owned subsidiary of the parent company since 1995. There are four manufacturing facilities and five divisions in the country. These are located in Bangalore, Greater Noida and Gurgaon. Delphi's key customers in India include Maruti Udyog Limited, General Motors India, Daewoo Motors, Fiat, Hindustan Motors, Volvo and Telco.
Multinational Delphi Automotive Systems, with headquarters in Troy, Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in mobile electronics and transportation components and systems technology. Delphi's three business sectors - Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communication - provide comprehensive product solutions to complex customer needs. Delphi has approximately 211,000 employees and operates 190 wholly owned manufacturing sites, 44 joint ventures, 53 customer centers and sales offices and 31 technical centers in 42 countries.
