Mobiletron Authorized to Sell Power Tools under ACDelco Brand

Mobiletron Electronics Co., Ltd., a Taiwan Stock Exchange (TSE)-listed maker of auto electronic parts and power tools, was recently authorized to sell ACDelco-branded power-tool products.

ACDelco is in North America and elsewhere literally synonymous with auto parts of all kinds. The supplier is a global leader in automotive replacement parts, related services and offers aftermarket products for all makes and models, including original equipment replacement parts. ACDelco products are available in more than 100 countries in six of the seven continents and are sourced globally to serve localized demands, including maintenance parts as batteries, oil filters, air filters, wiper blades, shocks and brakes, as well as repair parts as alternators, radiators, chassis and heating/cooling components etc.

Mobiletron says that its ACDelco-branded tools will be steadily launched starting January, and the new line is expected to generate better profits. The company debuted ACDelco automotive tools at the Auto Expo 2010 show in India, held January 5-11, winning promising reactions.

Kim Tsai, chairman of Mobiletron, says that ACDelco is one of the most profitable arms under the General Motors (GM) group. Showing its dedication towards the new partnership, Mobiletron has set up a subsidiary to handle sales and management. Tsai also says that ACDelco plans to launch over 70 pneumatic, electric, and digital auto tools, with the number to exceed 100 by the end of 2010.

The chairman, reconfirming that ACDelco is already the most famous brand for auto parts in North America, also says the brand is focusing on broadening sales in targeted markets as Brazil, China, India and Australia, aiming to become one of the world's top-five auto repair tool brands in three years. Snap-On is currently the world's largest auto repair tool brand with annual revenue of about US$2.7 billion.

Partnering with ACDelco will, Tsai says, somewhat restructure Mobiletron's development into focusing on two major directions: auto repair tools and automotive electronics. The new subsidiary will handle the tool business, but will gradually turn the entire focus of the lineup: from Mobiletron's original concentration on construction power tools to automotive counterparts. Meanwhile Mobiletron will continue to develop increasingly more automotive electronics to further widen market share.

ACDelco's Promising Plan

The chairman further clarifies ACDelco's goal to outsource most of its production to Taiwan, saying the American brand has selected more than 10 famous makers of pneumatic and electric tools on the island, and will contract the alliance as necessary.

Mobiletron used to generate some 5% to 7% of its revenues from automotive power tools, says Tsai, with such range to rise quickly soon. Mobiletron will continue its power-tool brand Durofix, but only for construction and decoration applications.

Having been a major supplier of automotive electronic parts for engines and safety systems, Mobiletron also aims to further consolidate its foothold in China's OE parts business by supplying more products to automakers in that booming market. Also M&A may be a strategy used, whereby the firm may acquire companies to rapidly expand its market in Latin America.

In addition to innovative automotive-electronic systems as ultra-wide view-angle camera system, wireless tire pressure monitoring systems (TPMS) etc., Mobiletron has successfully developed a night-vision system able to see 100 to 150 kilometers at night. Such system, Tsai says, has higher resolution than others available currently, and will be Mobiletron's major product category this year.