$90 Million Delphi "Slim" Sells Non-Core Business

At the end of Qingping, part of the Delphi business, which was once the world’s largest supplier of automotive parts, will be used to “smell” the concentration of Beijing—selling the global brake and suspended components business to Beijing Jingxi Heavy Industry. Ltd. Both parties have signed a subscription agreement. According to Reuters, BWI plans to purchase Delphi's portion of its business for US$90 million, but the transaction price also spreads to US$100 million.

Yesterday, relevant persons of BWI had no interest in talking about it, saying that “the negotiations had not yet been finalized.” The reporter learned that behind BWI, a 300 billion industrial blueprint is being brewed.

For Delphi, the sale of brakes and suspensions is a further step. Since the bankruptcy protection was filed in 2005, Delphi has been struggling to try and move away from its core business. Yesterday, analysts pointed out that the cooperation with BWI may be the beginning of its cooperation with Chinese companies.

Beijing plan generous plan 300 billion

The reporter learned that Jingxi Heavy Industry is a joint venture company established in Beijing to promote the acquisition. Just this Monday, Beijing Fangshan District Government’s website disclosed the official registration of “Beijing Jingxi Heavy Industry Co., Ltd.” and stated that it intends to introduce the core technologies of Delphi suspension and braking system to establish high-end auto parts in Doudian Town. The industrial base is the key investment project with the highest investment and highest technological content in the history of Fangshan Industrial Development.

Jingxi Heavy Industry is jointly funded by Beijing Fangshan State-owned Assets Management Co., Ltd., Shougang Corporation, and Baoan Investment Development Co., Ltd. With a registered capital of 800 million yuan. Shougang 508 million accounted for 51% of the total share capital, regional asset management company 200 million accounted for 25%, Baoan Investment 192 million accounted for 24%.

Earlier, Beijing’s well-informed people had already heard about this, and they hoped that they could “give money”. Yuan Jun, deputy general manager of Beijing Huafeng Tenglong Real Estate Development Co., Ltd., revealed at a forum last week that Fangshan District set a 5-kilometer range at Doudian and established an industrial belt with an expected annual output value of 300 billion yuan within a five-kilometer range. Industrial City should be completed within 3-5 years. He paid special attention to this news.

Yesterday, the staff of Beijing Fangshan State-owned Assets Management Co., Ltd. told the reporter that Jingxi Heavy Industry has not yet formally established a landing. “People are still negotiating in the United States and have not finally finished talking.” The transaction price has not been confirmed.

It is reported that Beijing's parts and components industry is developing relatively slowly. FAW, SAIC, and Dongfeng have their own main supply parts and components systems. However, Beijing Automotive, Beijing Hyundai, and Beiqi Foton, many of which are owned by Beiqi, cannot find supplies in Beijing. Business. GF Securities analyst Li Ming (a pseudonym) said that the acquisition should be the subject of Beijing's industrial planning, and in order to attract more relevant companies to enter. "The market size of auto parts is now over one trillion yuan. If Fangshan District's industrial scale really reaches 3,000 billion yuan, it can achieve one-third of the world."

Delphi cannibalism or salted fish

Compared to Beijing's top ambitions, Delphi can be said to have been forced to the edge of the cliff, had to be. High wages, aging equipment, and high pension subsidies are the main reasons for its difficulties. The Delphi annual report shows that as of December 31, 2008, the world’s second-largest parts and components company had total assets of 10.31 billion U.S. dollars and total liabilities of 24.579 billion U.S. dollars. In addition to this cooperation with BWI, in December last year, Delphi suspended the production of its factory in Suzhou, China. In order to save tens of millions of dollars in exhibition expenses, Delphi recently gave up attending the Shanghai Auto Show in April.

In order to get out of the predicament, Delphi spun off its non-core business and made every effort to develop its core business. So far, catalysts and door modules have been successfully sold, and brakes and suspensions have signed agreements with BWI. The steering and chassis are also looking for buyers and are carrying out a series of rejections.

According to Chen Wenkai, president of Gasgoo.com, $90 million will not help Delphi, who is seriously ill, to escape from the predicament. Since the transaction will be completed in the fourth quarter of this year, it will not be able to hydrolyze the thirst. However, if the US court approves the acquisition, it will greatly enhance Delphi’s liquidity and repayment ability, provide the possibility of obtaining more financing from the bank, and enhance Delphi’s future bankruptcy protection in Delphi, GM and the Ministry of Finance. The right to speak in the solution.

According to foreign media reports, Delphi said on March 31 that if GM could not increase its acquisition commitment in the pre-signed agreement to 450 million U.S. dollars before April 7, the company’s $117 million cash collateral would be on April 8. Used to pay outstanding debt. April 7 is the deadline for Delphi’s bankruptcy protection solution submitted by Delphi, General Motors, and the Ministry of Finance. As the current CEO of GM is appointed by the Obama administration, Delphi is faced with a monologue in this game of interests, and the reality has forced it to find another way out.

If this case is completed or the acquisition of the prelude

In fact, this time Jingxi Heavy Industries and Delphi signed an exclusive bidding agreement, which was not the first time that Chinese companies had contact with Delphi. After Delphi announced its bankruptcy, Wanxiang, Dongfeng, Fuyao and other manufacturers had thrown olive branches to Delphi. However, a US$3.4 billion investment from a private investment group in the United States has caused Chinese companies to lose opportunities for further contact with Delphi.

The current financial crisis has shrunk the assets of foreign parts companies and provided Chinese companies with the possibility of cross-border acquisitions. The "Auto Industry Promotion Plan" also mentioned that it hopes to restructure through the merger to enhance the strength of the entire vehicle industry, so local governments have all attached importance to the development of the spare parts industry. "Delphi currently has non-core businesses such as chassis, steering, etc. If the successful acquisition of Jingxi Heavy Industries, it may set off a small upsurge in the acquisition of Chinese companies." Chen Wenkai said that in the future, Chinese companies and Delphi's cooperation will have three paths, one with strength. Strong private parts companies directly negotiate; second, the government takes the lead; vehicle companies and parts companies join hands to acquire Delphi's business; thirdly, non-automotive industry groups with strong financial strength buy Delphi's part of their businesses and then sell them after packaging. Out.

â–  Sound

The key to M&A is not the price but the ability to digest

Geshen Wang, president of Gasgoo.com, said: “At present, Delphi faces serious difficulties, so asset valuation is certainly not high. If there is no potential risk, like unknown debt and the maintenance of employees and customer relationships, the current price should be reasonable.”

GF Securities Auto Industry Analyst Li Ming (aliased): “Price is not a key factor, and Delphi’s technology leadership makes this acquisition attractive, and it is very beneficial to improve the technical level of related industries in China. The transaction is likely to be achieved, but is it Successful mergers and acquisitions can not be known.The crisis is a period of mergers and acquisitions, many companies in the domestic automotive industry are engaged in overseas acquisitions, Geely just last week, Australian automatic transmission company DSI into its own, the key is whether it can be successfully digested into Own advantage."

●Some companies acquire Delphi

March 2005

Delphi throws its global car battery industry to Johnson Controls

March 2008

Private equity fund Lanke Group acquired 17 organizations and more than 3,800 employees in Delphi's global interior and cab partition business units.

In March 2008, Delphi’s interior and cap companies with sales of $1.3 billion were independent from the parent company and were acquired by financier Renco Group Inc. of Ira Rennert.

January 2009

Bienes Turgon, SA, a Mexican holding company, announced the acquisition of Delphi's global exhaust system business.

March 31, 2009

Delphi signed an agreement with Beijing Jingxi Heavy Industry Co., Ltd. to sell its global braking and suspension systems.

   The bushing is a matching part used outside the mechanical parts to achieve the functions of sealing and wear protection, etc. It refers to the ring bushing that acts as a gasket. In the field of valve applications, the bushing is inside the valve cover, and generally anti-corrosion materials such as Teflon or graphite are used for sealing.

   Bushing Components refer to parts with holes, which have the following types: 1. Tightening holes: These holes are used to insert bolts and screws. Its hole requirements are not high, generally below 4.5 grade accuracy. 2. Holes in parts of the revolving body. Such as stepped hole, smooth hole, general sleeve zd flange are all such holes. Some holes are tapered, and some have grooves in them. The accuracy of this hole is back to the right and left of the 2nd to 3rd grade. 3. Holes in the box parts: headboard bearing holes and other such holes require high accuracy, and the general accuracy is 2 or above. Groove in the hole, chamfering, arc, and the same size as the shaft tip parts. 2. The accuracy of the sleeve parts requires the following items: 1. Position accuracy of the hole 1) Position degree (the dimensional accuracy between the holes or between the hole and some surfaces) 2) Parallelism 3) Vertical Degree 4) Angle accuracy 2. Cylindrical hole itself accuracy 1) Aperture and length dimension accuracy 2) Hole shape accuracy (such as ellipticity, taper, drum shape) 3) Surface roughness (smoothness) according to drawing requirements.

   Used in: packaging machinery, textile machinery, mining machinery, metallurgical machinery, printing machinery, tobacco machinery, forging machinery, various types of machine tools and interchangeable machinery transmission coupling. For example: belt pulleys, sprockets, gears, propellers, large fans and various other connections; features: large torque, high precision, easy and fast assembly and disassembly, simple operation, good positioning, reduced scrap rate of shafts and hubs, It is reusable and does not damage the mating surface. It is the most ideal and economical choice at present.
1. Installation: The bushing has been coated with lubricating oil at the factory and can be installed and used directly. During installation, first screw three bolts into the screw holes of the flange of the other part and distribute them evenly along the circumference, and push the inner sleeve and the outer sleeve apart. Then put the expansion sleeve into the hub hole at the design position, and tighten the bolts manually with the force plate. The tightening method is that each bolt is only tightened to 1/4 of the rated torque at a time, and the tightening sequence is bounded by the opening. The left and right cross symmetry is tightened in order to ensure that the rated torque value is reached.
2. Disassembly: When disassembling, loosen all bolts a few turns first. Then screw the bolt top expansion sleeve crosswise into the removed screw hole.
3. Protection: prevent expansion sleeve pollution during installation. On machines with poor open-air operation or poor working environment, rust-preventing grease should be regularly coated on the exposed end faces of the expansion sleeves and bolts. Expansion sleeve types with better rust resistance should be selected. Expansion coupling sleeve is a modern and advanced mechanical basic part. It is a new type of keyless coupling device that is widely used in the world today to realize the coupling of machine parts and shafts, and to achieve load transmission by tightening the pressure and frictional forces between the receiving surfaces by tightening 12.9 high-strength screws.

Bushing Components

Bushing Components,Flange Shaft Sleeve,Porous Flange Shaft Sleeve,Custom Flange Shaft Sleeve

Dayue Precision Technology (Dongguan) Co., Ltd. , https://www.dayuechn.com