Delphi intends to call its soon-to-be-independent electrical and electronics division “Aptiv,” as the US-based automotive supplier group moves to spin off its powertrain operations into a separate company.
Aptiv will be headed by the combined group’s current CEO, Kevin Clark, while a slimmed down powertrain company called Delphi Technologies will have as its CEO Liam Butterworth, who today is president of the group’s powertrain operations.
The new electronics company, which will also have a stock market listing, will build advanced computing platforms and networking architecture to accelerate the development of connected-car technologies.
Clark said, in a press release, Aptiv will “develop intelligent solutions to meet mobility’s toughest challenges.”
Delphi expects the split to be completed by the end of March, 2018. Both companies plan to unveil their new brands at the CES consumer electronics show in Las Vegas in January.
Delphi isn’t the only automotive supplier struggling to focus on two divergent business areas. Sweden’s Autoliv earlier this month also announced it would conduct a strategic review of its corporate structure with the intention of possibly creating two separate companies: passive safety and electronics.
The company said it is currently catering to “two distinct, growing markets.”
Autoliv’s electronics business makes active safety products, including automotive radars, cameras with driver assist systems, night vision systems and positioning systems. The company said it expects the market for safety electronics to grow to 40 billion dlrs by 2025 from 20 billion dlrs in 2017.
Autoliv’s electronics sales totaled 2.22 billion dlrs in 2016 and the company expects revenue to grow to 3 billion dlrs by 2020.
The Swedish supplier’s passive safety business, with revenue of almost 8 billion dlrs in 2016, markets products that include airbag systems, steering wheels and seatbelts. This market is expected to grow to 25 billion dlrs by 2025 from 20 billion dlrs in 2017.
Autoliv had a 30 pc share of the global passive safety market last year.
The company said that, if a decision is made to separate the two divisions, the process is likely to take about a year.