Delphi Automotive Systems China has been chosen to supply a variety of products for Shanghai Automotive Industry Corp.'s mild hybrid vehicle to be launched before the end of the year.

"We make the inverter and motor controller, DC/DC converter, battery pack and battery management system -- so basically the entire drive system except for the motor," said John Absmeier, Delphi's director of business development in Asia for Hybrid and Electric Vehicle Systems.

Absmeier was talking to Automotive News China at an interview conducted at Delphi's China Technical Center in Shanghai's Waigaoqiao area.

He added that A123 Systems would supply battery cells to Delphi, which would use them to make its battery packs.

Headquartered in Massachusetts, USA, A123 Systems makes Nanophosphate based lithium ion cells. The company formed a joint venture with Shanghai Automotive Industry Corporation in December 2009 called Advanced Traction Battery Systems Co. It is this unit that will supply battery cells to Delphi in China.

Delphi's production plant in Suzhou covers 122,000 square meters and employs 1000 staff. Its products include radios, navigation systems, rear seat entertainment systems, antenna amplifiers, power window switches, airbag controllers, air con controllers and engine management controllers.

The plant will soon launch volume production of power electronics and energy storage systems. "We're investing in China to grow this business," said Absmeier. "We've emerged from Chapter 11 and one of our three core strategic technology focuses is on green, especially hybrid vehicle drive systems."

In China, Delphi is working with a host of electric and hybrid vehicle developers though these vehicles are still at the demonstration phase. "We're in discussion with nearly every OEM in China," said Absmeier, although he declined to name any.