Thursday, November 6, 2003
Delphi sees $1 bn China parts sales in 2003
Reuters Beijing, November 6
The world's largest automotive parts supplier, Delphi Corp, expects sales in the booming China market to hit about $1 billion this year, a top executive said on Thursday.
In contrast to pressures facing the global auto industry -- leading to 8,500 job cuts for Delphi worldwide -- customers in China were ramping up orders for the company's accessories, the president of Delphi Automotive Systems China told Reuters.
"This year we would expect that we would reach about $1 billion sales in China," Jinya Chen said in an interview on the sidelines of an economic forum. Sales in January to September this year had hit over $700 million, equivalent to total sales in 2002, Chen said.
"We look at the China market and the accomplishments we have made. We're confident of reaching this," he said.
He declined to comment on net profit forecasts for the year.
Delphi Corp reported a large third-quarter loss last month, dragged down by restructuring charges including the 8,500 job cuts.
Delphi has cut more than 17,500 jobs, or about eight per cent of its global work force, since the end of 2000 as it struggled to diversify its customer base and become less reliant on business from former parent General Motors Corp.
General Motors Corp remains a major customer for Delphi in China, along with other foreign and domestic players tapping China's car boom.
© Hindustan Times Ltd. 2003.