Delphi's 2002 Revenue Surges 35 Percent in China

SHANGHAI, China, Jan. 3, 2002; Delphi Corp., the world's largest and most diversified supplier of vehicle electronic transportation components, integrated systems and modules, today announced revenue from its China operations for 2002 topped US$700 million, up 35 percent compared with the previous year. This is the second consecutive year that Delphi China has reported an annual revenue increase of more than 30 percent.

"China continues to develop into a strong market for Delphi's technology solutions," said Dr. Choon T. Chon, president of Delphi Asia Pacific. "Demand has been driven primarily by stricter exhaust emission standards as well as pressure from foreign competition to diversify product offerings through leading technology, following China's entry into the WTO. China's strong economic performance last year (8% GDP growth) further fueled the enthusiasm of consumers for owning cars. This has resulted in record sales of Delphi's advanced technologies."

Delphi China has maintained an average annual growth of 24 percent since the company's official entry into the Chinese market in 1994 -- making it the leading foreign invested component supplier in China.

"I expect Delphi's leading market position and positive growth trend to continue," said J.T. Battenberg III, chairman, CEO and president of Delphi Corporation, "especially as we move to capitalize on the need for advanced electronically-controlled diesel engine management systems in the commercial vehicle sector, which is growing at a double digit rate. China has already become the world's sixth-largest automotive market and Delphi's market share will continue to grow as our content expands and as the volume of both privately-owned and commercial vehicles continues to rise."

At present, Delphi has established 13 legal entities in China involving a total investment of over US$400 million. Eleven of these are manufacturing facilities producing more than 40 categories of products for Chinese automakers and overseas customers. Delphi China holds several market leadership positions in China, including the largest wiring harness supplier, the largest catalytic converter supplier and the largest battery supplier in the automotive market. Delphi is also the only complete engine management system supplier in China with product offerings including air and fuel management components and exhaust after treatment all connected by electrical and electronic distribution and control systems.

"Delphi China's success can be attributed to the long-term commitment and high operating standards Delphi has set for China," Dr. Chon commented. "We view China as an integral part of our global operations, putting a strong emphasis on customer satisfaction and achieving the same standard of excellence in service and support that Delphi has become recognized for around the world. In fact, we exported products worth US$147 million to major OEMs in Europe and North America. Meanwhile, Delphi China imported about US$125 million and US$35 million worth of components respectively from the US and Europe."

All Delphi ventures in China are QS-9000/ISO 9000 certified as a part of Delphi's global strategy. High operating standards like these have helped result in recognition from Delphi customers.

In 2002, Delphi China ventures received more than 15 awards from global customers as well as local OEMs such as GM, Volkswagen, Fiat, Changhe and others. Delphi Packard Electric Systems Company Ltd. supplying wiring harness to GM, won the GM Supplier of the Year Award. This was the fifth consecutive year Delphi Packard Electric Systems earned the award and it was the only China-based enterprise awarded this honor. Delphi's battery plant won the 2002 Excellent Supplier Award from Hafei, a local mini-van maker and a quality award from Fiat's joint venture in China. Additionally, Delphi received a show of appreciation from Shanghai Volkswagen during 2001 when it awarded two Delphi joint ventures with its "Best Supplier" awards.

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