At the end of October, Delphi acquired the Automotive Product Division (MVL) of the FCI Group for nearly US $ 1 billion. This is also one of Delphi's largest acquisitions in recent years. Automotive connectors are indispensable devices for connecting automotive electronic components, and can be said to be the "joints" that connect automotive electronic "nervous systems." According to Yang Xiaoming, general manager of Delphi Connector Systems and Central Electrical Products Business Unit Asia Pacific, in the current tide of automotive electronics, automotive connectors are one of the fastest-growing segments in automotive parts, which is also Delphi ’s rejection. The main reason for the huge investment in MVL. According to the statistics of foreign research company Bishop & Associates, the current global automotive connector market sales are about 12 billion US dollars, with an average compound growth rate of 7% over the next five years. According to Yang Xiaoming, the acquisition of MVL will enable Delphi to become the world's second largest supplier of automotive connectors, with global sales reaching US $ 2.4 billion, which will further challenge Tyco Electronics' leading position in the industry. In the context of the slow growth of the European and American auto markets, for Delphi, the biggest significance of acquiring MVL is actually to accelerate the layout in the Asian market. "Before the acquisition, MVL's layout in Asia was strong in South Korea, for example, and it also had a factory in Nantong (China). The integration of MVL is very beneficial to Delphi's layout and development in Asia." According to Yang Xiaoming, the acquisition of MVL will bring new Asian customers such as Nissan and Korea Hyundai to the Delphi connector division, greatly enhancing their competitiveness in the Asian market. But Delphi is undoubtedly the most optimistic about the Chinese market in Asia. "The sales of China's automotive connectors currently reach 8 billion yuan, and the compound annual growth rate for the next five years is about 10%, which is higher than the average growth rate of the entire vehicle market." Based on this calculation, China's automotive connector market accounts for about one-eighth of the global market, and its strategic significance is self-evident for Delphi. After the acquisition of MVL, Delphi Connector Systems will continue to place its Asia-Pacific headquarters in Anting International Automobile City in Shanghai. The Delphi Connector System Shanghai plant in Anting, Shanghai is the largest manufacturing base of Delphi connector systems in the world. The connector mold center located in this plant has become the world's largest mold development and manufacturing base for Delphi connector systems. Nearly 75% of the mold products it develops are exported to North America, Europe and other places, and the business is expanded to Mexico. Etc.
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