DAYTON DAILY NEWS
Copyright (c) 1995, Dayton Newspapers Inc.
Published: Tuesday, February 14, 1995
By Mike Casey DAYTON DAILY NEWS Delco becomes Delphi
WARREN, MICH -- General Motors Corp. has changed its component group's name to Delphi to boost sales to non-GM customers. A bit of Dayton went with the switch.
On Monday, GM announced Delphi Automotive Systems will replace the name GM Automotive Components Group. Along with the group name change came new monikers for GM's parts divisions.
Delco Chassis, headquartered in Kettering, is now Delphi Chassis Systems. The other two parts divisions in the Dayton area received new names that more aptly describe their products.
Harrison Division is now Delphi Harrison Thermal Systems and Inland Fisher Guide is now Delphi Interior & Lighting Systems.
Delphi spokeswoman Karen Healy said the name Delphi was picked in part because of its Greek origins; people consulted the Oracle at Delphi to seek answers to important questions.
The name change also has a Dayton connection. The first three letters in Delphi match the first three letters in Delco, she said.
Delco traces its history back to the days when Charles F. Kettering's Dayton Engineering Laboratory Co. produced auto parts. The shortened version for this company - Delco - became recognized around the world as GM's parts divisions.
Delco's exit represents yet another name change for a major Dayton businessoperation. Last year NCR, which AT&T bought in 1991, became AT&T GIS, which stands for Global Information Solutions.
The name change of the GM unit reflects the group's mission.
Just five years ago, the parts divisions relied on GM's car and truck unitsto buy their products. But GM rolled up billions of dollars in losses and decided to sell and close some of its parts operations.
What's more, GM told the parts divisions to get additional business from outside customers. Delphi's goal is to 50 percent of its sales from companies other than GM's North American operations by 2002.
Delphi president J.T. Battenberg III said the name change will help. "I think this will open more doors to us," Battenberg said.
Some analysts have questioned GM's ability to get outside sales because competitors would not trust a GM unit with advanced design plans.
Battenberg said the name change should help to calm suspicions. "This will help us get on more bid lists," he said. He said the unit's sales to customersother than GM's North American operations rose to $7.35 billion last year, or $750 million more than the previous year. Total sales were $26.1 billion last year.
Battenberg said the name change was not a prelude to Delphi becoming a separate company as some analysts have speculated.
Despite the name change, Battenberg said Delphi still remains part of General Motors and will not change union affiliation, benefits or pay or profit sharing.
Published: Tuesday, February 14, 1995 Facts on Delphi Chassis Systems
Headquarters: 2000 Forrer Blvd., Kettering.
Vice president and general manager: Alan S. Dawes. Local connection: Plantsin Kettering, Dayton and Vandalia.
Local employment: 9,400. Foreign plants: 12 countries in North America, Asia and Europe.
Worldwide employment: 19,400.
Products include: Suspension parts, brake components, ball joints, engine mounts, springs, brake linings, anti-lock brakes.
History: Dayton Engineering Laboratories Co., the original Delco, was founded in 1909 by inventor Charles F. Kettering and his financial collaborator, Col. Edward Deeds, with a group of proteges called the Barn Gang.
From that company, acquired by General Motors' forerunner United Motors Corp. in 1916, grew all the Delco parts divisions within GM.
Delco Moraine was founded to make automotive brakes from basic research also done by Kettering. In 1934, Delco Products began making brake parts, and the two outfits operated side by side at the existing Wisconsin Avenue plant until they merged in 1942.
In May 1991, GM announced the merger of the Delco Products and Delco Moraine, which followed the April 1989 merger of another former Dayton-based GM division, Inland, into Delco Products.
On Feb. 13 1995, Delco Chassis became Delphi Chassis Systems, a division of Delphi Automotive Systems.