Delphi Dissolves Joint Ventures

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Delphi Automotive Systems Wordmark. (PRNewsFoto)[AG]
TROY, MI USA 10/19/2000
    TROY, Mich., Sept. 24 Delphi Automotive Systems today announced that it has exited
two ventures in China with total consolidated sales of approximately
US $14.2 million.  The majority interest businesses produce suspension and
steering components for automotive applications.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20001019/DELPHIAS )
    "In addition to our previously announced restructuring initiatives, Delphi
has been aggressively reviewing the operational efficiency of all its global
operations," said Delphi Chief Financial Officer Alan S. Dawes.  "To allow
better utilization of capital resources, operations that are not performing to
expectations or have limited strategic value due to changing business
priorities, must be addressed."  The two divestitures are:

    *  Tianjin Delphi Suspension Systems Co., a majority joint venture formed
       in 1997 with Tianjin Municipal Shock Absorber Co. in Hangu, China, to
       supply suspension dampers for the Chinese automotive market.  Delphi
       will sell its equity stake in the venture to Kangtai International
       Trade Co., a German affiliate of WanYuan Group (China).

    *  Saginaw Steering Xiaoshan Steering Gear Co., Ltd., a majority joint
       venture formed in 1996 with Zhejiang Wanda Steering Gear Ltd., in
       Xiaoshan, China.  Delphi's share will be sold to the partner.

    Proceeds from the divestitures were not disclosed.  Since 1992 Delphi has
sold or closed 88 plants or businesses with sales revenue exceeding
$7 billion.  Calendar year-to-date, Delphi has addressed more than $1 billion
worth of product lines and facilities as part of its portfolio management
review process.
    For more information about Delphi Automotive Systems, visit Delphi's
Virtual Press Room at http://www.delphiauto.com/vpr .

    Forward-Looking Statements
    The Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements made by us or on our behalf.  All
statements contained or incorporated in this release which address operating
performance, events or developments that we expect or anticipate may occur in
the future (including statements relating to future sales or earnings
expectations, savings expected as a result of our restructuring or other
initiatives, volume growth, awarded sales contracts and earnings per share
expectations or statements expressing general optimism about future operating
results) are forward-looking statements.  Principal important factors, risks
and uncertainties which may cause actual results to differ from those
expressed in our forward-looking statements include:  our ability to increase
non-GM sales and achieve the labor benefits expected from our separation from
GM, our ability to retain GM business, potential increases in our warranty
costs, our ability to successfully implement our global restructuring plans,
changes in the economic conditions or political environments in the markets in
which we operate, currency exchange rate fluctuations, financial or market
declines of our customers or significant business partners, labor disruptions
or material shortages, the level of competition in the automotive industry,
significant downturns in the automobile production rate, costs relating to
legal and administrative proceedings, changes in laws or regulations
pertaining to the automotive industry, our ability to realize cost savings
expected to offset price reductions, our ability to make pension and other
post-retirement payments at levels anticipated by management, our ability to
successfully exit non-performing businesses and absorb contingent liabilities
related to divestitures, our ability to complete and integrate acquisitions,
changes in technology and technological risks, our ability to protect and
assert patent and other intellectual property rights, and other factors, risks
and uncertainties discussed in our annual report on Form 10-K for the fiscal
year ended December 31, 2000 and other filings with the Securities and
Exchange Commission.  Delphi does not intend or assume any obligation to
update any of these forward-looking statements.

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