Delphi Realigns To Improve Lean Manufacturing

Autoparts Report, Nov 5, 2002

Delphi Corp. chairman, CEO and president, J.T. Battenberg III announced a realignment of the company and also appointed executives to intensify lean enterprise transformation and technology development, focus on customer and growth initiatives, and oversee resolution of under-performing businesses. All changes are effective January 1, 2003.

Battenberg said the new business sectors will be composed of divisions with business lines that are grouped on the basis of similar product, market and operating factors. The business sectors are: Dynamics, Propulsion and Thermal Sector -- comprised of businesses from Delphi Energy & Chassis, Delphi Saginaw Steering and Delphi Thermal. Electrical, Electronics, Safety & Interior Sector -- comprised of businesses from Delphi Packard Electric, Delphi Safety & Interior, Delphi Delco Electronics, and Delphi Product & Service Solutions.

"This realignment will increase our focus on products and services with the greatest long-term benefit for Delphi and our business units will dedicate their time and deploy their engineering and manufacturing resources more efficiently," Battenberg said.

Battenberg also announced the formation of a special unit within the company, comprised of selected product lines, joint ventures and plant sites that are not core to Delphi, or do not meet the company's targets for growth, strategic fit, profitability and other financial metrics. For segment reporting, the unit will be designated the Automotive Holdings Group.

"This realignment of our businesses and leadership is an important step to accelerate our efforts to position Delphi for growth, customer satisfaction and profitability. We intend to be faster, easier to communicate with, and provide better solutions that serve our customers' global market needs," Battenberg said. "We expect the transition to be seamless to our customers, provide potential for greater return for our investors, and to further engage our employees and suppliers in the transformation of Delphi."