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Delphi Auto Rebrands as Delphi Tech and Aptiv in Preparation for Autonomous Vehicles

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【Summary】Aptiv has created a goal of reducing overall costs for driverless hardware and software packages by 90 percent. The business wants to offer autonomous driving stacks for $5,000.

Michael Cheng    Dec 17, 2017 11:00 AM PT
Delphi Auto Rebrands as Delphi Tech and Aptiv in Preparation for Autonomous Vehicles

Delphi Automotive, one of the largest automotive parts manufacturer in the world, is preparing diligently for the commercialization of autonomous vehicles and fleets. Earlier this month, the company announced the timely spin-off of its powertrain arm.

Emerging out of the split are two companies: Delphi Technologies and Aptiv, which will focus on driverless technology, connected infrastructure for cities and mobility solutions. The former will continue to advance its automotive powertrain segment, as well as the establishment's aftermarket line.

Investment firms wasted no time sizing up the two companies, as they were separately listed on December 5, 2017 under DLPH (NYSE) and APTV (NYSE). According to a report on Seeking Alpha about the split, Delphi Technologies was rated at Outperform by RBC Capital. Such rating comes with a positive outlook for Delphi.

Robo-delivery Services Coming Soon

One of Aptiv's primary focus is autonomous driving platforms, which was emphasized by Kevin Clark, Chief Executive Officer of the company. The CEO mentioned self-driving cars will initially roll out to businesses that can directly benefit from autonomous fleets, including ride-hailing companies and businesses that offer delivery services. For such purposes, the new technology may help reduce daily operating costs associated with hiring human drivers.

"When you look at the commercial market -- areas where you have a driver in a vehicle -- there is financial incentive to use autonomous driving," said Clark in an interview with Bloomberg. "Those customers are willing to pay a much higher price."

Clark previously cited it intends to speed up development for driverless components by investing in startups that specialize in data collection.

In order to boost adoption, Aptiv has created a goal of reducing overall costs for driverless hardware and software packages by 90 percent. At the moment, acquiring the necessary components cost between $70,000 and $150,000. The business wants to offer autonomous driving stacks for $5,000.

To achieve this, Aptiv is working closely with automakers in redesigning new vehicle platforms to utilize fewer parts. Furthermore, modern automotive units will be capable of handling more software, electric motors and sensors for autonomous driving.

Focusing on Autonomous Driving Tech

The rebranding of Delphi comes with several changes and renewed focus on automotive technologies. In order to facilitate its goals, the company is revamping its plant in Brookhaven, Mississippi. The building, which started operations in 1977, will develop connected services, driverless car platforms and cutting-edge driving software. In 2011, the plant was used to produce circuit boards for trucks, under a contract with General Motors.

"Aptiv will be a technology company that develops safer, greener and more connected transportation solutions for a diverse array of global customers," said Andreas DiVece, manager of the Delphi Automotive plant in Mississippi.

Currently, the Brookhaven facility hosts 295 employees. The business plans to open an additional 30 new positions in the company to streamline operations in the plant. Aptiv is making final preparations to participate in the upcoming Consumer Electronics Show 2018 in Las Vegas, where it will showcase its new mobility products and solutions.

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