(Adds Delphi CEO comments)
By Joseph White
DETROIT, Sept 27 (Reuters) - Delphi Automotive Plc Chief Executive Kevin Clark said on Wednesday the company's two post split-up parts, to be called Aptiv and Delphi Technologies, can thrive on their own and that there was no strategy to seek buyers.
Clark, in a meeting with investors, said Aptiv PLC, the name announced earlier on Wednesday for Delphi's $12 billion a year electronics and self-driving car technology business, expects to grow faster than the auto market, and generate $2 billion to $2.5 billion in operating cash flow by 2020.
Delphi's $4.5 billion a year internal combustion powertrain technology business will be named Delphi Technologies, and should generate about $700 million a year in operating cash flow by 2020, the company told investors.
"We are two separate companies that will stand on our own," Clark told reporters during a call.
Delphi has a partnership with chip maker Intel to develop systems to enable self-driving cars. Intel has a market capitalization roughly six times Delphi's and recently acquired Mobileye NV, a supplier of automotive camera vision software.
Intel is "a very strategic supplier of Delphi's," Clark said. That partnership "doesn't necessarily have to mean a financial investment of one party into another," he said.
Aptiv, which will trade under the symbol APTV, will design and produce electronic systems, advanced safety technology and integrate the hardware and software for self-driving cars.
The market for what the industry defines as Level 4 or 5 systems that enable vehicles to drive themselves in most situations will be mainly driven by mobility on demand services, such as ride hailing, through 2025, Clark said. Aptiv expects to generate about $300 million in revenue from Level 4 or Level 5 autonomous driving systems in 2025, he said.
Demand for systems that allow cars to pilot themselves on limited access highways or in traffic jams, with a driver ready to take control, will grow more rapidly over the next seven years. Aptiv's revenue from so-called Level 1, 2 and 3 automation will grow to $1.8 billion a year from $500 million today, Clark said.
Delphi shares fell about 4 percent in trading on Wednesday. The company's stock is up 47 percent for the year to date. Clark will become CEO of Aptiv.
Delphi Technologies, which will trade under the symbol DLPH, includes businesses that generated about $4.5 billion in revenue last year. The spinoff will take place in March 2018, Delphi said. (Reporting By Joe White; Editing by Susan Thomas and Tom Brown)