Aptiv PLC, an automotive technology supplier, operates 11 major technical centers in China, Germany, India, Mexico, Poland, Singapore and the United States.
In general, companies often establish technical centers to advance innovation, improve existing products and develop new technologies.
In 2023, this company had a 14.6% year-on-year increase in net sales, to $20,051 million. And its net income was US$2,966 million, 403% higher than in 2022.
With a team of approximately 22,200 scientists, engineers and technicians, Aptiv is a leading global mobility technology company focused on developing and manufacturing advanced driver assistance systems, vehicle wiring and connectivity solutions.
Its total investment in research and development, including engineering, was about $1.8 billion, $1.5 billion and $1.4 billion for the years ended December 31, 2023, 2022 and 2021, respectively, which includes approximately $492 million, $379 million and $320 million of co-investment by customers and government agencies.
Each year, the company shares some engineering costs with OEMs and government agencies, generally ranging from 20% to 30% of engineering costs.
This level of co-investment supports product development, accelerates the pace of innovation and reduces the risk associated with the successful commercialization of technological breakthroughs.
Aptiv
The company also encourages «open innovation» and collaborates extensively with industry peers, government agencies and academic institutions.
In the past, suppliers often incurred the upfront cost of engineering, design and development of automotive components, and recouped their investments over time by including a cost-recovery component in the price of each part based on expected volumes.
Innovation
Aptiv utilizes a Technology Advisory Board, a panel of prominent global technology thought leaders, to help it forecast leading-edge technology trends and guide its product strategies and technology investments with a focus on developing advanced technologies to drive growth and foster innovation.
Going forward, the company projects spending for research and development activities, including engineering, net of co-investment, to be approximately $1.2 billion for the year ending December 31, 2024.