The Beijing West Industries Group (BWI) of China formally announced Monday their approximate $100 million asset purchase of former Delphi Ride Dynamics and Brakes business units.
The former Delphi Ride Dynamics and Brakes business was a premier supplier of automotive chassis products in the world. It now has about 3,000 workers in its units in the United States, Poland, China and Europe.
"We believe this is a good opportunity for BWI Group to make healthy inroads into the world's premium automotive chassis systems market, as Delphi has over the years accumulated a wealth of technical knowledge," said Fang Jianyi, chairman of the Board of Directors of BWI Group, immediately after the signing the documents concerning the purchase in downtown Detroit.
"We will continue what the previous owner Delphi established and expand on it," Fang said.
In his remarks after the signing, Fred Bellar III, CFO of the Delphi Automotive Holding Group, said that he is pleased to have worked with BWI Group in completing the transaction and believes BWI Group's newly-acquired businesses will experience healthy development under new ownership with the resources and commitment to grow the businesses.
He told Xinhua that the purchase is a good cooperation between the auto industries of the two countries and the new company will be able to cope with different challenges in making the venture a successful one.
Dan Warrell, a Delphi veteran of over 40 years, who has been chosen to lead the BWI Ride and Brakes business worldwide, told Xinhua that he is very happy about the purchase and has confidence on the new company.
"Suspension and brake systems are crucial for improving vehicle comfort, stability and performance and we will continue to focus on these key features which offer excellent value our customers," said Dan.
"My senior management team will remain intact and we will continue to take the necessary actions to increase efficiencies in our operations, provide superior returns to our stakeholders and further grow our business," Dan added.
Shougang Corporation, Beijing's largest employer and one of China's largest steel makers, contributed 51 percent of the equity in BWI Group. With years of experience in overseas investment, Shougang Corporation has proved to be the mainstay of the Delphi chassis system acquisition. Through the acquisition, the company expects to diversify its lines of business, with steel making still at the core.
Beijing's Fangshan District, an area in southwest Beijing, contributed 25 percent of the equity to become the second largest investor in the transaction through its wholly-owned entity Beijing Fangshan State-Owned Assets Management Co Ltd.
The third investor is Bao'an Investment Development Co Ltd, a private company owned by four individuals and controlled by the China's Tempo Group. The Tempo Group has been operating in North America for over a decade, selling after-market auto parts and buying technologies and equipment to boost its manufacturing operations in China. With a 24 percent equity stake, Bao'an is a major player in operating the former Delphi chassis business. The company sees this acquisition fully aligning with the Tempo Group's lines of business -- making brakes, shocks, control arms and other automotive chassis parts and components.
The former Delphi Ride Dynamics and Brakes business units are headquartered in Dayton, Ohio in the United States, which has a long-standing tradition of invention, innovation and industrial development.
Throughout the purchase process, BWI Group has engaged a number of world-class consulting firms to ensure a seamless transition. Customers have expressed enthusiasm that BWI Group will treat chassis parts and components as its core business and invest in new technology, and have approached BWI Group to sign new contracts.