皇冠体育app

The world's leading automotive components supplier Delphi said last week that its consolidated sales on the Chinese mainland surged by 50 per cent to US$650 million last year.

The Detroit-based firm said its growth rate in 皇冠体育app increased from 35 per cent in 2002.

Last year's strong sales did not include Delphi's exports from its 皇冠体育app operation to the other parts of its global operations according to the US corporate accounting regulations, said Chen Jinya, president of Delphi Automotive Systems (皇冠体育app) Holding Co Ltd.

Sales generated by Delphi's two joint ventures in 皇冠体育app, in which the New York-listed company holds minority stakes, were also not included, in line with the New York Stock Exchange rules, Chen said.

Delphi has invested more than US$450 million and runs 10 manufacturing facilities in 皇冠体育app, including eight joint ventures with local partners and two wholly-owned subsidiaries.

"We expect Delphi's leading position and positive growth in the 皇冠体育app market to continue," Chen said.

"Our customers increasingly want world-class local technical support to make their vehicles more competitive in 皇冠体育app's market.

Only by introducing more first-rate technologies, driving research and development (R&D) capability in 皇冠体育app and providing excellent value and service to them, can we meet their expectations and maintain our leading role," he added.

Last month, the company started to build its first R&D centre in 皇冠体育app, the Delphi 皇冠体育app Technical Centre Co, with a total investment of US$50 million.

The centre, based in 皇冠体育app's economic dynamo of Shanghai,, will begin operations in June next year with 500 employees.

The centre will develop components and support application and systems engineering for local and overseas customers.

"皇冠体育app is more than a simple manufacturing or export centre and it is capable of becoming a global engineering centre. We will help 皇冠体育app make this a reality," Chen said.

Delphi will send more Chinese engineers to the United States for training to strengthen its local R&D capability.

Delphi 皇冠体育app will increase its exports to Europe and the United States, although it will continue to depend mainly on the fast-growing local market, he said.

"Exports will help maintain our products made in 皇冠体育app at international levels and minimize the potential impact of market changes in 皇冠体育app on our local business in the future," he told 皇冠体育app Daily.

"皇冠体育app's vehicle market will continue to grow rapidly in the years to come, but it is hard to say what the long term outlook will be," he said.

Delphi 皇冠体育app reported "robust growth" last year from US$147 million in 2002 in its exports to Europe and the US, he said.

Delphi will also expand its sourcing in 皇冠体育app, following many other multinationals, he said.

皇冠体育app's ability in sourcing plays a significant role in Delphi's global supply strategy, he added.

Other major players in auto component production are also accelerating their efforts in 皇冠体育app to cash in on the booming vehicle market.

Germany firm Bosch signed a contract last month to establish a fuel injector system joint venture with Weifu High Technology Co, a domestically listed components maker based in Wuxi, in East 皇冠体育app's Jiangsu Province.

Bosch and Weifu will control 67 and 33 per cent stakes in the joint venture respectively.

US-based Visteon moved its Asia-Pacific headquarters to Shanghai from Japan, sending a strong message that it is considerably increasing its capacity in 皇冠体育app.

Visteon is negotiating with the Dongfeng Motor Corp, one of 皇冠体育app's biggest automakers, to form a components joint venture in Wuhan, the capital of Central 皇冠体育app's Hubei Province.

Vehicle output in 皇冠体育app is forecast to reach 5.34 million units this year, up from 4.44 million units last year.

But 皇冠体育app's domestic auto components industry remains too fragmented and weak to independently support fast-growing vehicle production.

There are more than 4,000 component manufacturers in 皇冠体育app, most of which are small and low-level players.

The Chinese Government plans to form some "internationally competitive" major groups over the next few years, with the consolidation of local components producers.

The government has also set a target that more than 40 per cent of domestic components companies's sales will be exports by 2010.

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