Safety & Interior Systems Refines Organization Structure

Delphi Safety & Interior Systems products move to two other Delphi divisions; Support functions to be consolidated

TROY, Mich., Nov. 12 -- Delphi Corp. today announced the consolidation of product lines managed by Delphi Safety & Interior Systems into Delphi Delco Electronics Systems and Delphi Harrison Thermal Systems. This organizational refinement will strengthen Delphi's customer and market focus by bringing together similar product portfolios and enhance Delphi's position as an integrated supplier. Delphi also announced it will consolidate its corporate and divisional support staffs. "This will increase our focus on our customers and improve communications surrounding their product needs," said J. T. Battenberg III, Delphi's chairman, chief executive officer and president. "It strengthens our leadership in electronics integration and safety systems as well as our capabilities in providing customer convenience and comfort in our interior and thermal systems."

The realignment is effective January 1, 2004 and eliminates one operating division.

Divisional Consolidation

Delphi Safety & Interior Systems' occupant protection business line will be realigned with Delphi Delco Electronics Systems and the new division will be named Delphi Electronics & Safety. Jeffrey J. Owens, currently president of Delphi Delco Electronics, is named president of Delphi Electronics & Safety. Integrated closure systems, HVAC electronic controls, cockpits and interior business lines will be aligned with the existing thermal product lines and the new division will be named Delphi Thermal & Interior. Ronald M. Pirtle, currently president of Delphi Harrison Thermal Systems, is named president of Delphi Thermal & Interior. James A. Bertrand, currently president of Delphi Safety & Interior Systems and Delphi's Automotive Holdings Group (AHG), will retain his responsibilities for the AHG and focus solely on the important competitive challenges of that set of operations.

"We are taking these actions as we continue to focus intently on our customers' needs, as well as those of the ultimate vehicle consumer," said Battenberg. "With this change, product portfolios that presently interface across divisional lines will be brought together. Delphi Electronics & Safety will represent our broad electronics capability, and advanced sensors and actuators for innovative occupant protection systems. Delphi Thermal & Interior will bring together the systems that focus on passenger comfort and convenience."

As part of the realignment, the headquarters for Delphi Thermal & Interior will be located in Troy, Mich.

Staff Consolidations

Battenberg also said Delphi will consolidate its support staffs across the headquarters, regions and divisions. The consolidation will begin by the end of this year.

"Several of our functional staffs are already centralized or consolidated," Battenberg said. "We will work to further leverage skills, reduce cost and drive common practices across the company. Ultimately, a more common approach will be a strong enabler for us to function as a unified team and have a consistent approach with our employees, customers, communities."