Delphi Wins $2.5 Billion Contract for Diesel Common Rail With Renault

PARIS, Oct. 14, 2002; Delphi Corp. has won a contract with an estimated lifetime value exceeding $2.5 billion U.S. to supply advanced common rail diesel injection systems to Renault. The contract builds on the successful cooperation between Renault and Delphi in many areas of high technology, including the introduction last year of a new generation of high- performance diesel vehicles that use Delphi's Multec(TM) DCR 1400 injection systems.

"We are delighted to have developed with Renault the second generation diesel common rail and to have signed this very important contract," said Jose Maria Alapont, president of Delphi Europe, Middle East and Africa and vice president, Delphi Corp. "This jointly developed advanced diesel common rail technology provides better performance, greater refinement and lower fuel consumption and emissions: all key factors in differentiating diesel vehicles in an increasingly competitive market."

Delphi common rail systems will be available on the new Megane II, launched recently at the Paris Auto Show, as well as Clio and Kangoo models fitted with the 1.5 litre dCi engine. The new agreement will take the partnership with Renault on common rail up to 2008. The system has already allowed Renault to achieve compliance with the Euro III emissions standards and will allow compliance with Euro IV when required.

Delphi's second generation common rail technology has already attracted substantial additional business with Ford, Hyundai-Kia and PSA Peugeot Citroen. Delphi Common rail manufacturing production is expected to reach 2.5 million systems per year by 2006.

Dominique Chauvin, European managing director of Delphi Energy & Chassis Systems, expects diesel engines to account for more than 45 percent of European car sales by 2005 compared with around 39 percent today. Delphi is the only technology supplier worldwide with the capability to provide a complete end-to-end solution, including injection systems, engine management systems, emissions control and fuel handling systems.

Other Delphi technology on the new Megane II includes a compact variable compressor for the air conditioning system. Delphi will also supply an innovative, continuous cam phasing system for gasoline engine versions fitted to the 1.6-litre 16V engine.