Delphi Automotive Systems Acquires ATRi
New Delphi Integrated Service Solutions Business Unit Established to Offer Electronics Technology Solutions to Automotive Service Providers
Release Date: October 30, 2001
LAS VEGAS - Citing rapid growth of high-technology electronic vehicle systems, expanded data storage in automobiles and strong service technician acceptance of new handheld devices for data acquisition for vehicle service, Delphi Automotive Systems (NYSE: DPH), today announced the acquisition of Automotive Technical Resources, Inc. (ATRi) of Troy, Mich. The business will become part of Delphi's Aftermarket Operations in a new business unit, Delphi Integrated Service Solutions.
Delphi acquired closely held ATRi Inc. for $15 million. ATRi employs 50 people located in two sales and technical offices. Effective immediately, a core management team will be put into place to integrate ATRi into the newly formed Delphi Integrated Service Solutions business unit and begin the launch of new Delphi automotive service applications.
"Our aftermarket business strategy is to use Delphi's extensive electronics capability to capitalize on existing and new market opportunities. We are focused on replacement parts for vehicle electronics components and systems, new web-enabled vehicle service technologies, and consumer electronics for in-vehicle entertainment and personal productivity," said Francisco A. (Frank) Ordonez, general manager, Delphi Aftermarket Operations.
"Delphi Integrated Service Solutions will combine existing Delphi aftermarket service technology initiatives with new intellectual property, technology integration and existing customer relationships currently within ATRi. We plan to provide game changing, comprehensive service support to increase technician and shop efficiencies, and reduce service returns," said Ordonez.
Automotive service industry studies indicate that 40 percent of a technician's billable hours are lost to service system inefficiency. Further, 18 percent of aftermarket parts sold are returned according to industry reports.
According to Ordonez, Delphi Integrated Service Solutions expects to provide technicians and shop managers with the tools they need to compete in an increasingly complex vehicle maintenance environment. Complexity of vehicle service plus an increasingly time-starved consumer base is contributing to steady growth in the Do It For Me (DIFM) or full-service segment of the automotive parts and service market.
Delphi Integrated Service Solutions will feature products and services devoted to raising the industry standard for electronic service applications, including:
- The ATRisys™ platform is a wireless network for repair facilities that allows shop technicians to remotely access diagnostic information, technical data and training at the vehicle on a just-in-time basis. This increases productivity by eliminating repair shop inefficiencies including current catalogs, microfiche, and CD-based systems. The ATRisys™ platform is based upon an open architecture that allows it to support all shop hardware. Delphi Integrated Service Solutions intends to offer an i-SHOP compatible system in the near future.
- Technical assistance will be delivered to aftermarket partners via general application phone support and direct connect through the wireless handheld, providing component-specific technical support, service solutions and service updates.
- The handheld, online information library includes a detailed database of product information that is easily accessible to Delphi aftermarket partners.
- Computer Based Training (CBT), Web Based Training (WBT), as well as locally sponsored technical training clinics and courses for aftermarket partners on general service, vehicle systems, shop management, workflow management and diagnostic process.
The system uses new technology hardware including wireless hand-held units and PC-based platforms. The proprietary software is unique, enabling a custom application, yet the system is flexible and cost-effective. Live demonstrations of the product offering can be observed in Delphi booth # 5324 at the AAPEX show Tuesday, Oct. 30.
For more information about Delphi Automotive Systems, visit our Virtual Press Room at www.delphiauto.com/vpr.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Delphi and its representatives may periodically make written or oral statements that are "forward-looking," including statements included in this report and other filings with the Securities and Exchange Commission and in reports to our stockholders. All statements which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, savings expected as a result of global restructuring or other initiatives, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results) are forward-looking statements. These statements are made on the basis of management's views and assumptions; as a result, there can be no assurance that management's expectations will necessarily come to pass. Principal important factors, risks and uncertainties which may cause actual results to differ from those expressed in forward-looking statements set forth in this press release include: our ability to increase non-GM sales and achieve the labor benefits expected from our separation from GM; our ability to retain GM business; potential increases in our warranty costs; our ability to successfully implement our global restructuring plans; changes in the economic conditions or political environment in the markets in which we operate; incremental costs, slowed automobile production or other effects that may occur as a result of the terrorists attacks; currency exchange rate fluctuations; financial or market declines of our customers or significant business partners; labor disruptions or material shortages; the level of competition in the automotive industry; significant downturns in the automobile production rate; costs relating to legal and administrative proceedings; changes in laws or regulations pertaining to the automotive industry; our ability to realize cost savings expected to offset price reductions; our ability to make pension and other post-retirement payments at levels anticipated by management; our ability to successfully exit non-performing businesses and absorb contingent liabilities related to divestitures; our ability to complete and integrate acquisitions; changes in technology and technological risks; our ability to protect and assert patent and other intellectual property rights; our ability to provide high quality products at competitive prices, to develop new products to meet changing consumer preferences and to meet changing vehicle manufacturers supply requirements on a timely, cost effective basis; and other factors, risks and uncertainties discussed in the Delphi Automotive Systems Corporation Annual Report on Form 10-K for the year ended December 31, 2000 and other filings with the Securities and Exchange Commission. Delphi does not intend or assume any obligation to update any of these forward-looking statements.
For more information contact:
Delphi Automotive Systems
Kathryn Oldham
[1] 248.267.8643
kathryn.t.oldham@delphiauto.com
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