Troy's Delphi Plans Spinoff

TROY, MI — The growing trend of automotive-related companies focusing on autonomous vehicles continued as Delphi Automotive PLC recently announced plans to split itself into two ventures. Delphi, which makes its North American home in Troy, said it’s spinning off its powertrain systems division into a new publicly traded company.

The move aims to accelerate Delphi’s growth in products related to autonomous vehicles, data, infotainment and connectivity. Delphi is one of the world’s largest automotive suppliers. The change is the latest step in Delphi’s transformation to a company offering “safe, clean and connected” technology to the global auto industry, CEO Kevin Clark said.

“Today’s announcement represents an exciting opportunity for our businesses by creating two independent companies, each with a distinct product focus, a proven business model, and the flexibility to pursue accelerated investments in advanced technologies that solve our customers’ most complex challenges,” Clark said in a statement.

The split is expected to be completed by March 2018, after which Delphi shareholders would own shares in both companies. Delphi’s $12 billion electrical/electronic architecture and electronics and safety businesses will focus on computing, advanced safety and autonomous driving systems, infotainment and user experience, vehicle connectivity and electrification, and data services, the Detroit News reported.

Delphi said its $4.5 billion powertrain company focuses on enhancing vehicle propulsion systems and today represents about a quarter of its business. It supplies automakers and aftermarket customers and has 20,000 employees globally, including 5,000 engineers, the News reported.

“At a time of unprecedented industry change, the underlying strength of both our operating businesses and strategic partnerships will allow each company to focus even more sharply on its unique opportunities, continue to develop the very best advanced technologies, and help our customers navigate the road ahead,” Clark said in the news release.

The company has not decided on names for the two ventures going forward, though one will get a new name. Clark told the Detroit News Delphi’s management team will consider alternatives over the next several months.

“I do like the Delphi name,” Clark told the newspaper. “We’ve created a lot of value for customers, we’ve created a lot of value for shareholders. There’s value in that name.”

Delphi has about 145,000 global employees, including 15,000 engineers. Delphi has about 1,700 employees in Michigan, most of them based in Troy.

Photo by Bill Pugliano / Stringer / Getty Images News / Getty Images