DELTA ELECTRONICS HYBRID

POWERTRAIN

Submitted by- GROUP 5

Abhaya
Abhigyan
Abhimanyu
Abhinav Pande
Abhinav Satija
Abhishek Somvanshi

BACKGROUND
Worlds largest provider of switching power
supplies
Founded in 1971 in Neihu, Taipei by Bruce
C.H.Cheng
Manufacturing electronic components for
local TV companies
In 1974, started supplying foreign companies
such as PHILIPS, ZENITH, RCA etc.
Revenues reached $4.6 million in 1980 and
currently stand at around $3.8 billion

 Focuses on efficient use of energy with the

energy-conversion efficiency reaching 96% in
2009
Moved into Solar-Cell production in partnership
with Spectrolab
Produced solar opto-electronic modules which
were used as roof panels of stadiums In 2009
World Games,Taiwan
Aims to provide innovative, clean and efficient
energy solutions to the world

ENTER THE HYBRID POWER

SYSTEM FOR AUTOMOBILES
MARKET

SWOT Analysis
Strength
Operating out of China (Largest market for
automobiles)
Four decades of experience in manufacturing
of energy efficient electronic components
used for industrial automation
Expertise in the manufacture of industrial and
power control components used in HEV (Can
make use of market adjacency)

SWOT Analysis
Weakness
No prior experience in automobile
powertrains
Moving away from core competency
(Electronic component manufacturer for end
products)
Little knowledge of system-level issues of
automobiles and their impact on the
components and sub-systems

SWOT Analysis
Opportunity
Global shift towards cleaner and greener
forms of energy
Special emphasis of Chinese government on
green energy (Being one of its top three
strategic national developmental priorities

SWOT Analysis
Threats
Being a new entrant, tier-1 vehicle
manufacturers wouldn't be willing to
implement their design in whole
Emergence of new competitors in this
segment operating out of China due to cheap
factors of production
Safeguarding of IPR from copying and theft

HYBRID ELECTRIC VEHICLES

Combines a battery and electrical drive system
with an IC engine.
Get their fuel efficiency through the
combination of engine optimization and
recovery of braking energy.
Overcome the disadvantage of both pure ICE
vehicles and pure battery powered ones.

 Two dominant architecture namely : the series

HEV and the parallel HEV.
In series HEV the ICE connects to generator so
mechanical energy converts in electricity.
Flexible because ICE and generator can be
located at some distance from wheels.
In parallel HEV both motor and ICE are
coupled to a drive shaft.
Electric motor acts as a generator so no
separate generator needed.

APPROACH TO DESIGN
Setting up of a separate unit to develop and
supply key components for electric vehicles
Parallel management approach to be able to
leverage capabilities and move resources from
one business unit to other
Both industrial automation unit and HEV
component unit headed by the same person,
Simon Chang

 Parallel Approach extending below the

business unit level as well
For example two separate motor
departments, one for industrial control and
other for automotive, had a common manager
Use existing cash flows for investments;
investments were often not that big because
of leverage of existing technologies

 Recruit new people in the organization for

technologies that they did not have expertise
in
An optimum mix of people from inside and
outside; the inside people being able to find
resources internally
Strategic partnership with Ricardo plc

PARTNERING WITH RICARDO

Ricardo independent engine R&D company
working with as many as 40 manufacturers
globally
Recognised for its expertise in three main
areas : engine, transmission and vehicle
structure
Provided assistance to Delta in designing a
complete hybrid power train

 Enabled Delta to access the latest technology

with high quality and efficient manufacturing
resources
Coverage to Delta under Ricardo patents
thereby reducing the risk of dilution of brand
identity and leakage of IP
Ricardo in charge of the design task and Delta
of the mass production product
Both Ricardo and Delta could pursue
customers independently as well

THE PLATFORM APPROACH

Delta adopted Series hybrid design which led to
fewer mechanical interdependencies among
components
Common platform for different car sizes A
frame. B-frame , C-Frame etc.
Core circuitry and core design remains same for
all frames
Common platform allowed flexibility to change
the dimensions and outside mounting holes to fit
the individual requirements

 Customer will have to make very minor

modifications
Upfront engineering costs were lowered with the
platform approach
Design was not optimized to make complete use
of all cost and performance elements that an
integrated customer design might offer
In the initial years of power supplies
manufacturing Delta developed a whole series of
standard units but could not sell to the market
All the power supplies needed to be custom
designed as even low volume customer needed a
lot of customization

END PRODUCT AND COMPLICATIONS

Decide to sell only components to first - tier
automakers
Would sell the entire system to second - tier makers
Designing was done for second tier Chinese car
manufacturer
The contract was for vehicle control unit link
specifications
Delta believed the car manufacturer wouldnt be
able to design the VCU themselves
Hence a team was assigned to come up with a back
up design, just in case

 Developed system capabilities and enhanced

learning by building a test car using a hollowed out
BMW
Extensive modifications done inside the engine
compartment
Repositioning of car components in order to
implement the new design
The customer was unable to come up with his own
system and agreed to use Deltas design
However there was one condition, the IPR for the
VCU would belong to us
Issues regarding the protection of their design

A CATCH-22 SITUATION
Delta developed the VCU themselves
The customer did not have its own vehicle
controller and hence no car
Releasing the IP meant transferring key know
how that was a huge part of Deltas
differentiation
Increased vulnerability to copying by other
manufacturers who could reverse engineer the
process
Could affect Deltas competitive advantage in
industrial automation market as well

SOLUTIONS
Adopted "distributed intelligence" approach to system
design
Separated control into two planes
- Upper layer for master control
- Lower layer for execution at device level
Execution layer consisted of feedback from sensors
Made it difficult for the imitators to implement their
system
The DI approach could lose its effectiveness because of
high volume and cost pressures of automotive industry
over industrial automation industry

 Instead of licensing the IPR to the customer,

Delta can provide dedicated teams in order to
help the customer to gain more control over the
engine and performance of final vehicle

Delta can also look into the prospect of teaming

up with the customer by going M&A route or
share swap in order to align the objectives of
both the firms and thereby safeguarding its IPR