The restructured "new" Delphi has reduced the scale of its business and strengthened its business layout around environmental protection, green, and connectivity to make it more rational. In response to the aftermarket in the Asia-Pacific region, Delphi has successfully launched its products in 22 countries and regions in the Asia Pacific region based on the development strategy of the global aftermarket. The "new" Delphi shows people a strong momentum of development. The reporter conducted an exclusive interview with Delphine, the global vice president of Delphi’s product and service solutions division, on issues such as Delphi’s after-sales business and development model in China.

Reporter: In recent years, Delphi has launched a new business model - the Delphi Service Center. Can you specifically talk about this kind of business operation? Do you think this service method is applicable to China?

Situ Yulin: At present, the main business of Delphi Service Center is in the European market, and there are already more than 4,000. The adoption of such a development model as the service center is mainly to better support the development of customers in terms of products and services. This model is also a reflection of Delphi’s global aftermarket strategic planning.

Our development strategy in the global aftermarket includes four aspects: first, regional expansion; second, customer development; third, expansion and growth of distribution channels; and finally, product enrichment.

In the future we will also establish more service centers in China. At home, we have established a service center centered on diesel product lines. From the market situation, we have reflected very well. Therefore, in the coming years, we will continue to develop service centers based on the needs of the market based on other product lines.

Reporter: Which of your product lines will adopt the service center's development model in 2011?

Situ Yulin: The next step will be the adoption of a service center development model for a product line such as a diesel engine management system. We believe that such a business model will surely be further expanded in China.

Delphi has always been helping customers to grow better as a goal of unremitting efforts. At the same time, we are also willing to share with our customers some of our successful experiences in the world to help them achieve better development and explore with them a more effective Business model.

Reporter: Your company has always been "becoming the best partner for customers to choose" as the goal of unremitting efforts. In your mind, what is the best standard?

Situ Yulin: In addition to completing our established goals and plans every year,. We need to understand what the customer's expectations are and what the goals are. Then take the global strategy as the starting point, actively meet the needs of customers, and follow the pace of customers to establish a production base and further expand the scope of business.

At the same time, we will provide products with high quality and competitive price advantages to our customers, and we will continue to enrich product content to make the models covered by our product lines more comprehensive and extensive. In addition, we must maintain the consistency and continuity of our strategy while establishing a strong internal team to strictly implement the strategy. Delphi's philosophy is to constantly pursue excellence in product, management and service.

Reporter: In the past year, Delphi authorized dealers to increase to more than 100 companies. What strategy does the company adopt in distribution network distribution? Your company has always advocated diversified sales channels. Does it also include diversification of distribution models?

Situ Yulin: All along, our business model is more consistent, and we must further expand the size and network of dealers. China's distributors are still in a relatively fragmented state. We hope to integrate them and form a large-scale customer base similar to our large customers in Europe and the Americas. They are relatively large purchasing groups with more than a few thousand stores that can help Delphi distribute more products, and we are constantly promoting their development. In this way, we and our distributors can grow together and achieve a win-win situation.

Reporter: At present, China's after-sales market is still immature. The sales channels of the products are still not perfect, and all kinds of counterfeit and shoddy are full of them. What measures has Delphi taken to ensure that Chinese customers can really enjoy the original ancillary products?

Situ Yulin: If a dealer wants to become a member of the Delphi family, the first contract to be signed is to sign this one: It is absolutely impossible to sell fakes in your own dealership.

In addition, we established a quality brand protection committee together with some large multinational companies. During this Frankfurt Motor Show we also set up a special booth to call for the use of original accessory products. We will also use legal means to safeguard our rights, cooperate with relevant administrative agencies, and give warnings and penalties to counterfeit businesses.

In my opinion, the current post-sale market in China is still immature, and there will inevitably be problems with counterfeiting, but this is also a necessary process for the market to mature.

Reporter: Delphi has been in the Chinese market for nearly 20 years. However, the establishment of the company's aftermarket business department is a matter of nearly a decade. How do you see the company's business performance in the aftermarket in China these years?

Situ Yulin: Delphi entered the Chinese market in 1993. Since then, we have started to provide Chinese customers with the original supporting services. In other words, we started the after-sales service in China very early. In recent years, as China's after-sales market has gradually matured, more original manufacturers have entered this market, and we have ushered in even more opportunities. To this end, we conducted a new plan and established a special post-market business unit to better serve the aftermarket.

In the past few years, we have won the "Top Ten International Brands in China's Aftermarket", "2009 Most Popular Brands in China's Aftermarket" and "2010 Most Influential Brands in China's Miniature Auto Accessories Industry" etc. since 2007-2009. The award was highly recognized by the market.

Today's Delphi has successfully brought its products to 22 countries and regions in the Asia-Pacific region, and we will also accelerate the pace of those markets that are gradually maturing, and set up corresponding business offices there.

Reporter: What do you think the Asia-Pacific region has already matured in the market?

Situ Yulin: For example, Japan, South Korea, Australia, New Zealand, and Singapore are all very mature markets, namely, the first market, followed by the second market represented by China, Thailand, Malaysia, and India. The rest of the countries are The size of the after-sales market is very small, and some even stay in home-style workshop production.

In recent years, China’s auto market has grown rapidly, and the aftermarket has also boomed. However, the Chinese market has large coverage and customer needs are also complex. Therefore, we must pay close attention to changes in the market, formulate corresponding strategies and plans, and work with our excellent team to implement these plans step by step.

Reporter: What is Delphi's current after-sales business plan?

Situ Yulin: We continue to strengthen our business around environmental protection, green, and connectivity. We provide customers with services that cover the entire life cycle of products. We are also actively developing remanufactured products. Remanufacturing as an environmental protection industry will be the trend of the future. It will not only make sense for the aftermarket, but it will also have immeasurable significance for the original manufacturer of complete vehicles.

Reporter: China's after-sales market is relatively decentralized. Looking at the growth rate of China's current car sales, more people in the future will have demand for vehicle maintenance. Can you talk about your company's current after-sales market maintenance service network construction? What are the new strategic plans for the next step?

Situ Yulin: We have several major automotive product lines. The first is automotive electronics, the second is heat exchange automotive products, the third is automotive chassis systems, and the fourth is services. Among them, services include continuous improvement of our channels for discovering and diagnosing problems. Our philosophy is to help service centers grow as quickly as possible. If we can better help service centers to find and diagnose problems in cars, then they can We provide better products and services to our end customers. In this way, our maintenance companies and Delphi will be the ultimate winners.

We have also set up a training center specifically for maintenance service centers to provide free training for personnel in various maintenance service centers.

In the future, we will continue to increase our investment in the three major markets of Europe, the Americas, and China, especially the Chinese market, which will be the focus of our future attention.

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