Adopting eco-friendly technology is the driving force behind powertrain technology innovation

Gasgoo.com: What will be the global trend in powertrain technology innovation? Do you have any plans to apply or introduce the related technology to China? What are the highlights of Delphi's powertrain business in China ?

Alan Zhang: Adopting green and eco-friendly technology is the driving force behind powertrain technology innovation. There are two development directions for powertrain technology: one is progressive innovation, which is based on traditional internal combustion engines, aiming at constantly improving engine performance through various advanced technologies, such as variable valve technology (VVT), supercharging, gasoline direct injection (GDI), stratified combustion, etc.; another direction refers to revolutionary innovation, namely the search for new technologies that provide driving power and replace traditional combustion engines, such as hybrid power, electric cars, fuel cells, etc.

Delphi has introduced VVT and gasoline direct injection into China, which have been applied to a number of engines and models to help vehicles reduce fuel consumption and emission. Delphi is one of the world-leading suppliers of VVT. The technology has gained instant recognition among Chinese customers soon after it was introduced into the Chinese market. Now, the products have achieved domestic production, so as to better meet customer demands.

Delphi boasts comprehensive powertrain technologies with products ranging from gasoline engine management systems, fuel supplies and evaporative emission controls, diesel engine management systems to transmission management systems. Coupled with a powerful system integration ability, it can provide flexible and high value powertrain solutions – which is exactly the magic instrument for us to achieve success in the Chinese market.

Gasgoo.com: Many global auto-parts companies have said that China's local customers are relatively sensitive to prices and very demanding about technology and products. How to meet their demands?

Alan Zhang: First, we are proud to tell everyone that Delphi has become the supplier of engine management systems for most Chinese OEMs. Delphi adheres to international standards in both technology and product quality. On the other hand, through the optimization of product designs, and improvement of the percentage of domestic production, lean production and local engineering support, we have lowered costs in many aspects and made our products even more competitive in the Chinese market. We have successfully conducted several hundred projects in China, having developed a highly experienced local engineering team which is capable of performing tasks ranging from parts development to system integration.  The efforts enables Delphi to provide high quality, cost competitive products and solutions to Chinese OEMs.

Gasgoo.com: The Chinese government encourages the purchase of low-emission vehicles and requires that sub-1.5L models of passenger cars should reach a 40% market share (with sub-1.0L models to have 15%). What services will Delphi provide in the efforts to make engines lighter and smaller?

Alan Zhang: Both the Chinese government and other countries are advocating low-emission vehicles, for this signifies the trend of the automobile industry. However, low emission does not necessarily mean low power; through the application of various new powertrain technologies, low emission cars can also meet user’s demand for power. In China, most of Delphi’s engine management system technologies are applied in models with low emission engines which are favored by the government. From engine control electronic units and parts in engine management systems, to fuel supply and evaporative emission control, Delphi has developed a range of mature products targeting low emission engines and compact cars. Meanwhile, our local engineering team has also accumulated rich experience in the application of low emission engines and compact cars, which means Delphi is now fully prepared to meet the advent of the age of low emission cars.

Gasgoo.com: Hybrid and electric vehicles are being increasingly well received. What are Delphi's new technologies and products in the new energy field? OEMs seize the new-energy opportunity to regain control of some core technologies such as the powertrain system – how will Delphi cooperate with OEMs?

Alan Zhang: We have successfully introduced a hybrid power system with world leading technologies, and offer demo cars for test driving and personal customer experience at our technical center in Shanghai. As mentioned earlier, Delphi’s powerful system integration ability provides effective matching among components – from engine management systems to hybrid power control systems – so as to maximize the advantage of our hybrid power system.
The application of new energy technologies by OEMs creates a higher demand for suppliers’ R&D ability. Our vision is to “Drive tomorrow’s car technology.” Each year Delphi invests massive resources into the development of new products and new technologies, in order to meet the demand of OEMs.

Gasgoo.com: How about Delphi Powertrain's R&D in china? In your opinion, under what conditions will global companies boost their R&D investment in China and develop new technologies and products specially for the Chinese market?

Alan Zhang: Delphi has been dedicated to the buildup of its localized team. Delphi Powertrain Division employs nearly 200 R&D personnel in China. Our China Technology Center in Shanghai also boasts world class equipment, for fulfilling both the localized engineering application and synchronized development of the latest technologies. Our concept is to move our team as close to our customers as possible, so as to provide a rapid customer response. China has become the world’s largest car market, and enjoys long term prospects of sustained growth. Delphi feels proud of our localized team strategy. As China approaches developed countries and regions, in terms of emission regulation and fuel consumption limits, and expands and deepens policies encouraging the application of new energy sources, it will become one of the key strategic centers of Delphi’s global R&D efforts.