Delphi: Accelerating the Transformation of Diesel Technology Achievements
After taking office for the first time, Mr. Philippe Deno received a small-scale interview with the Chinese media as the vice president of the Delphi Products and Services Solutions Group. He discussed the development of the global business of the Delphi diesel aftermarket and Delphi China's automotive aftermarket business. In particular, questions concerning the business development of the diesel rear market, etc., answered questions from reporters. The following is an interview record:
Reporter: For the first time since Mr. Philippe Deno took office, he visited the market in China and introduced to the Chinese media friends about Delphi's diesel business worldwide.
Philippe Deno: I am very happy to have this opportunity to communicate with friends in the media! Delphi's post-market business is growing very fast and China is a very important market for Delphi's product and service solutions division. I hope to conduct a comprehensive and in-depth understanding of China's auto aftermarket business as soon as possible so as to better provide Delphi China's aftermarket business team with strong support in order to better serve its customers.
In the past few years, the automotive aftermarket has developed rapidly in terms of technology, especially in diesel technology. For the Delphi leadership, providing strong support for the Chinese market is one of the priorities for future work. Delphi's Product & Service Solutions Division has just held a diesel system aftermarket business dealer seminar in Suzhou. In this meeting, we not only shared Delphi's strategy in the diesel aftermarket, but also learned about distribution. Business needs, because only a thorough and thorough understanding of dealers can provide them with better support.
I found that the needs of Chinese distributors are generally the same as those of dealers in other countries. The only difference is that the Chinese market is developing rapidly. We need to adapt to this speed.
Reporter: Just now Mr. Deno said that the only difference in the Chinese market is the rapid development. To adapt to this speed of development, Mr. Deno has already thought of which methods can better meet the needs of the Chinese market? For example, how many service stations do Delphi have to build before? What kind of service station would it be? Does Delphi include further expansion in the aftermarket product line?
Philippe De Nuo: In order to better answer this question, I would like to introduce the overall structure and market strategy of the post-market diesel business. The company holds the core technology in diesel, but the operation process is very complicated and many accessories are electronically controlled. Therefore, to provide services for diesel customers requires a very strong level of technology. We have established a network of diesel service centers called the Delphi Diesel Service Center of Excellence (COE).
The Delphi Diesel Service Center has a complete diagnostic system that accurately diagnoses damaged parts. For example, if the problem lies with the fuel injector or the oil pump, we will repair the problem part again. The standard of our maintenance is that the maintenance parts must meet all the parameters of the original parts. The emphasis is on repaired parts to achieve the quality of the original parts.
Support for dealers is mainly reflected in three aspects: one is to perform maintenance skills training for dealers; the second is to provide diagnostic test equipment; and third, to provide complete training for dealers. At present, we have 20 excellent service centers and 36 diagnostic centers in China. Next we want to further expand our service network. The goal is to have at least doubled this number by 2015.
The European market is dominated by the Delphi Diagnostic Center (DSC). There is a difference between the Delphi Diagnostics Center and the Delphi Diesel Service Center. The main function of the Delphi Diagnostics Center is to diagnose diesel vehicles and then send the problem components to the Delphi Service Center for Excellence (COE) for repairs. Delphi currently has about 1,500 Delphi Diagnostic Centers in Europe.
For us, the key is to make our dealers have the ability to diagnose diesel vehicle faults, which is very important. In addition, the complexity of diesel vehicle systems is much higher than before. The previous diesel systems were mainly fuel injectors and oil pumps. Now, there are not only nozzles, oil pumps, but also ECUs, EGR, and so on. The customer only requires the repair of damaged parts and does not want the system to be replaced. To accurately diagnose faults in such a complex system, the technical requirements for maintenance are very high. As the original matching supplier, Delphi is the designer of this system and we have a unique technological advantage for the system. Delphi's technology can not only meet today's market demand, but also meet tomorrow's market demand.
Delphi's post-market team works closely with the engineering team of the original team. We learn the design of the system from the original supporting technical team and provide the aftermarket services for the originally designed products.
We have developed a complete set of solutions for the aftermarket, including software, equipment, manuals, and training programs combined with dealers. It is a complete service system. Delphi not only masters the core technology of component development, but also has expertise in post-market services.
Reporter: Delphi has 1,500 service centers in Europe. What kind of model is the US market?
Philip-Deno: North America is not the same. The North American diesel market is mainly heavy trucks. Delphi is mainly based on maintenance service centers. In North America, we have about 600 service centers. We provide diagnostic services, equipment, maintenance tools, and test equipment.
Reporter: The diesel oil product in the Chinese market is a problem. Currently, diesel is mainly used in the commercial vehicle market in China. There are many restrictions on the passenger car market. What plans does Delphi have for the development of the diesel rear car market?
Philip Deno: To solve the problem of China's fuel quality, it depends on excellent filter technology. In the diesel system contains a lot of accessories, we just talked about the nozzle, pump, ECU, sensors, there is an important component is the filter. The filter can separate the impurities and water in the diesel fuel, so that the oil meets the requirements. Delphi has designed a filter specifically for the Chinese market. This filter has three layers of filter media. It can filter to a standard of 2 microns and is designed and developed specifically for the Chinese market. Our filters are able to protect the quality of the diesel oil after filtration of the oil.
Just now you mentioned that diesel technology is a very clean source of energy. I very much agree with your point of view. Nowadays, diesel technology has even reached Euro VII and Euro VIII standards. I hope that the diesel vehicles will develop well in the Chinese market.
Reporter: What is the current sales channel of Delphi in China?
Philippe Deno: We are primarily based on the Delphi Diesel Excellence Service Center. There are also distributors who sell Delphi diesel parts.
Reporter: China will launch the European V standard for diesel commercial vehicles. How does this affect Delphi?
Philip Deno: The Chinese market to raise the emission standards for diesel vehicles is not only beneficial to the environment, but also beneficial to the improvement of the technological level of the entire industry. Of course, this is also an opportunity for Delphi. Delphi has a complete set of diesel engine management technology. From light diesel systems to heavy-duty diesel systems, the displacement ranges from 1L to 10L. From small cars to medium-sized cars and large cars, Delphi has a complete package. Mature original supporting technology and aftermarket service solutions. We are fully prepared to meet the challenges and adapt to market trends. Delphi's aftermarket development strategy is that when a new diesel model is introduced, Delphi will be ready to provide a full range of service solutions in the post-market, including diagnostics, equipment, tools, training and more. In the past ten years, we have been adopting this strategy in the European and American markets, and of course the Chinese market is no exception.
Reporter: What are the differences in functions between Delphi's diesel service centers and Delphi's diagnostic centers? Delphi has 20 service centers and 36 diagnostic centers in China. What is the difference between service centers and diagnostic centers? Does it mean that China has not yet provided spare parts service capacity?
Philip-Deno: Delphi's Diesel Service Center for Excellence (COE) not only diagnoses but also provides maintenance, so it's much more investment-wise. The Delphi Diagnostic Center (DSC) mainly provides diagnosis. So one is diagnostic and the other is diagnosis and maintenance.
Reporter: Does Delphi Diesel Service Center operate or license itself? The biggest difference between China and Europe and the United States is the ratio of gasoline vehicles to diesel vehicles. What do you think about the future forecast of China's diesel vehicle market and its future layout?
Philip-Deno: We operate Delphi Diesel Center in China as an authorized dealer. The proportion of diesel passenger cars in the Chinese market is relatively low, but in commercial vehicles, a large part of diesel vehicles from mini cars to heavy trucks are diesel vehicles. I think the proportion of diesel passenger cars will also gradually increase because diesel technology is a very clean technology. With the Chinese government's control of emissions and the concern for the environment, I believe that diesel passenger cars will have a good Market development space.
Reporter: We have just mentioned the model of authorized dealers. Is this model globally in use or does it mean that there will be some direct-operated stores in Europe? Secondly, there are 56 centers in China. The truck's common-rail system pressure is totally different from that of a sedan. Are the trucks and cars repaired in the same place?
Philippe Deno: We can provide diagnostic maintenance services for all diesel engine management systems including passenger cars and commercial vehicles in all of our repair and diagnosis centers in China. Technically speaking, they are all the same, and the same diagnostic and maintenance equipment are used.
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