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Delphi spins off powertrain business to go all-in on autonomy

This spinoff will become its own publicly traded company.

I wonder if Delphi will move its hardware over to the 2018 Q5 once that goes on sale.


Delphi has been hard at work developing technologies that will play a vital role in the next generation of vehicles, and to further grow this business, it's giving other efforts some breathing room.

Delphi, a Tier 1 supplier for the automotive industry, will spin off its powertrain unit into an independent, publicly traded company. It's expected to complete the spinoff by March 2018, and Delphi shareholders will also hold stock in this new company. Liam Butterworth, president of Delphi's powertrain arm, will become the CEO of this fledgling business.

This new company, which doesn't yet have a name, will focus on boosting efficiency and performance. As a supplier, it will continue to develop technologies that it will then sell to automakers for use in production vehicles. This chunk of Delphi's business employs some 20,000 people, about 25 percent of which are engineers.

Spinning the powertrain business off will give Delphi the ability to greater focus its efforts on next-gen technologies, including data services, infotainment, safety systems and, of course, autonomous driving. This division is much larger than powertrain, comprising some 145,000 employees and 15,000 engineers.

Delphi's been quite open about its development of autonomous vehicle technology. Using an Audi Q5 as a base platform, Delphi has permits to test its self-driving tech in public. At CES 2017, we even took a brief spin in it. It's believed that Delphi's systems could make their way to production cars as early as 2020 or 2021.