Eight years ago, auto-parts maker Delphi Corp.'s bankruptcy filing heralded the storm that would engulf the U.S. auto industry and drive some of its biggest names into Chapter 11.
Now leaner and profitable, a renamed Delphi Automotive DLPH +1.93% PLC is back and again leading the way—this time toward a healthy automotive industry built on high-tech electronics, software and fuel-efficiency-boosting products.
The Troy, Mich., company's return on invested capital is 34%, nearly double the 18% industry average. It reported a profit of $1.08 billion last year, compared with a loss of $4.75 billion in 2004, the year before it filed for bankruptcy.
The biggest factor in its turnaround: Delphi is steering away from low-margin steering wheels, ball bearings and spark plugs to technologically complex products, especially "active safety products," such as adaptive cruise control, lane-departure warning systems and front and rear cameras, which help prevent accidents. The company also is working on technology that allows a vehicle to see and react to objects, signs and pedestrians....
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