Delphi Joint Efforts and State Tax Credit Brings Up to $315 Million Investment in Local Community - Including New E*Steer(TM) Production

         Improvements in Competitiveness Expected to Help Retain Jobs

    SAGINAW, Mich., Jan. 25 Delphi Saginaw Steering Systems
announced today that it was awarded a Brownfield Redevelopment Single Business
Tax Credit from the State of Michigan, given to Michigan businesses that plan
to invest $100 million or more in updating their facilities, equipment, or
machinery.  As a result of the extremely competitive tax package offered by
the State of Michigan, as well as UAW Local 699 support, Delphi plans to
invest up to $315 million in its Buena Vista site, allowing it to retain up to
500 jobs.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20001019/DELPHIAS )
    "The updated Brownfield Redevelopment Financing Act legislation has
already lead to an exceptional level of new investment in obsolete facilities
or blighted areas," said Doug Rothwell, president and CEO of the Michigan
Economic Development Corporation.  "Since November, the program has helped
spur more than $1.6 billion in new private investment, including Delphi's
impressive commitment."
    The designated brownfield locations in Saginaw will be used to produce
E*STEER(TM), Delphi's new state-of-the-art electric power steering system, as
well as investing in process technology improvements for its column and
halfshaft product lines.
    "As a global leader in steering systems, remaining competitive is critical
to Delphi's future success," said Paul J. Tosch, president of Delphi Saginaw
Steering Systems and vice president of Delphi Automotive Systems.  "Hard work
and collaboration between our local and state government, as well as working
closely with our UAW partners on creative solutions, has enabled us to meet
these competitive challenges.  As a result of this team effort we will bring
new E*STEER(TM) work to our Buena Vista site, as well as update and improve
our process technology for our other steering products."
    Delphi Steering gives much of the credit for securing its new E*STEER(TM)
business in Saginaw to the positive relationship between the union and
management.  "UAW Local 699 and management worked together to develop a
creative approach to the manufacturing plan, resulting in Saginaw being
awarded this very important future business," said Tosch.
    "It is very important to our membership that we update our processes and
products, to ensure our competitiveness and provide job security for the
future," said UAW Local 699 Bargaining Chairman Bill Daly.  "We are excited
the joint efforts resulted in the award of new E*STEER(TM) work for Saginaw."
Al Coven, UAW Local 699 president added, "We have talented people, capable of
meeting customers' needs for high quality future technology, and this project
will give us the chance to once again prove our local work force is second to
none."
    Delphi's successful launch of its E*STEER(TM) electric power steering
system last fall on the Fiat Punto has brought new customers in both Europe
and the United States.
    Multi-national Delphi Automotive Systems , with headquarters in
Troy, Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in
mobile electronics and transportation components and systems technology.
Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics & Mobile Communication -- provide
comprehensive product solutions to complex customer needs.  Delphi has
approximately 211,000 employees and operates 190 wholly owned manufacturing
sites, 44 joint ventures, 53 customer centers and sales offices and 31
technical centers in 42 countries.  Delphi can be found on the Internet at
http://www.delphiauto.com .