The Delphi Automotive facilities in Kokomo are set for major changes after the company announced it is spinning off its powertrain segment into two companies.
Delphi announced last month those two companies will be Aptiv, which will focus on technology related to self-driving vehicles, and Delphi Technologies, which will concentrate on powertrain development.
Delphi spokesman Zachary Peterson said Thursday Delphi Technologies is now set to take over all the electronic and safety facilities in Kokomo and continue to engineer power electronics and powertrain electronics. The new company will also maintain its technical center and labs in the city.
At the same time, the Kokomo plants will become Delphi Technologies’ largest center of expertise for electronics in the world.
“Kokomo will be center of excellence for that,” Peterson said.
However, an unknown number of engineers at the Kokomo facilities will become employees of Aptiv, he said, and will be moved to a new facility the company will install in Indiana.
Peterson said that facility will be “a state-of-the-art campus with a collaborative, agile layout as we transform ourselves into a new mobility company.”
He said Aptiv is currently considering building the campus or moving into an existing facility somewhere north of Indianapolis. The company should decide on a location in the next 12 to 24 months.
Once the new facility is up and running, it will focus on product development and also house the company’s validation labs and support functions.
Peterson said until a new campus location is determined and the transition is complete, Aptiv employees will remain in Kokomo in shared facilities occupying separate floors.
Delphi Automotive currently employs over 1,000 workers, according to the Greater Kokomo Economic Development Alliance website. The company did not provide employment numbers.
The split of Delphi Automotive’s powertrain segment into two companies is expected to be complete by March 2018.
Aptiv will focus on accelerating the commercialization of autonomous driving and active safety, and will provide the software, computing platforms and networking architecture required to do that.
The powertrain business will carry the name Delphi Technologies, leveraging the historical strength of the Delphi brand and focusing on enabling advanced vehicle propulsion through combustion, software, controls and electrification.
“The names Aptiv and Delphi Technologies clearly reflect the independent identities, visions and directions of the two companies, each a global leader in its industry,” said Kevin Clark, Delphi president and chief executive officer, in a statement. “Both will continue to embody Delphi’s core themes of safe, green and connected, with the autonomy and expertise to react to the rapidly changing dynamics in the automotive industry and solve its customers’ most complex challenges.”
Both companies will be publicly traded.