KOKOMO, Ind. — Delphi Electronics & Safety President Jeff Owens has announce plans to implement an $89.3 million award from the Department of Energy (DOE) that will support expansion of Delphi’s Power Electronics engineering capabilities as well as the establishment of a new manufacturing operation in Kokomo, Ind.
The award, through the American Recovery and Reinvestment Act of 2009, was announced by President Barack Obama during a visit to Indiana in August. With an $89.3 million match by Delphi, this action will represent a three-year investment of up to $178.6 million to advance the development of low-cost manufacturing of electric drive vehicles (EDV) in the United States.
"Electric drive vehicles hold the promise of meeting two critical government and industry goals — reducing dependence on petroleum and reducing greenhouse gas emissions," Owens said. "Delphi has a long history of successfully developing and commercializing automotive electronics. With this DOE partnership, we will apply our proven expertise to develop technologies and processes that will help lower the cost of electric drive vehicles and make them more attractive to a broad range of consumers. We are pleased to have the government and industry support evident here today."
In addition to the DOE award, Delphi has been offered support from the Indiana Economic Development Corp., through performance-based tax credits and training grants. The company also is finalizing a property tax abatement application with the City of Kokomo.
Over the next five years, Delphi anticipates adding about 190 employees as a result of government and business awards to Delphi’s power electronics business line. Delphi expects to add about 95 engineers at its Kokomo technology center over the next two years, increasing engineering employment in the power electronics unit to more than 300. In the next three years, Delphi projects about 40 people will be hired at a Kokomo facility where power electronics products will be manufactured with employment at that facility moving to a total of about 95 by 2014.
Delphi will establish its manufacturing operation in an existing facility at 1501 E. Road 200 North (Morgan Street). The company will lease the 90,000-square-foot building, reusing vacant manufacturing space originally built for a manufacturer of metals for the orthopedics industry in northern Indiana.
Among the first products expected to be manufactured at the new facility will be power electronics components and systems for Allison Transmission, a leading supplier of commercial-duty fully automatic transmissions for both on- and off-highway vehicles, and of hybrid propulsion systems for on-highway transit and coach vehicles. Allison, headquartered in Indianapolis, announced earlier this month that it had entered into a long-term business agreement with Delphi to advance the production of medium-duty hybrid trucks in the United States. Under terms of the agreement, Delphi will supply Allison with key hybrid drive system electronic components and energy storage systems to be used in its hybrid propulsion systems for medium-duty commercial trucks and buses.
