Delphi Secures $550M in Global Halfshaft Business in '04
Wins 20 new programs worldwide
Expands presence in China with seven independent vehicle manufacturers
TROY, Mich., March 14 -- Delphi Corporation booked more than 20 new halfshaft programs globally during 2004, totaling more than $550 million in lifetime revenue.
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More than 70 percent of this new business supports Delphi's efforts to diversify its customer base. Details of the contracts remain confidential at the customers' request.
The revenue will be generated over the length of the contracts, which average 4 years.
Much of the new business coincides with Delphi's global expansion and includes programs with seven independent vehicle manufacturers in Asia Pacific. A localized engineering and sales team at Delphi's technical center in Beijing helped to secure the new China business.
In addition, manufacturing capabilities are localized in China through a joint venture with Delphi Saginaw Lingyun Halfshafts, all supported by Delphi's years of industry-leading experience around the globe.
"The China market provides great growth opportunities for our halfshaft product," said Robert J. Remenar, president, Delphi Steering. "Our halfshaft team has been able to capitalize on these growth opportunities because they offer unsurpassed understanding of the relationship between the chassis and the powertrain enabling us to solve challenges in the entire system."
"In addition, the halfshaft market in general is growing faster than the overall vehicle market as many SUV's are switching to independent rear suspensions, premium cars are moving to all-wheel drive and big trucks are starting to use constant velocity joints on their propeller shafts, replacing traditional universal joints," said Remenar.
One of the North American programs booked last year features Delphi's newest halfshaft technology called Tri-Glide, a premium, high-performance, constant velocity (CV) joint. This new joint enables low stroke effort, large stroke angle capacity and high mechanical efficiency. Tri-Glide also reduces ride disturbance caused by a high angulation under high torque. The end result is a smoother ride for consumers.
"The added performance provided by this new premium constant velocity joint is becoming a requirement across more platforms for many of our customers, which will improve our ability to win additional business," said James R. Ray, business line executive, halfshafts.
A strong validation process further supports Delphi's technology, global footprint and vehicle level integration capabilities.
"An integral part of Delphi's global service is our validation capability which includes extensive noise, vibration and harshness (NVH) testing at a state-of-the-art facility," said Ray. "Our stringent real-time testing simulates real-world conditions, which allows us to provide CV joints and halfshafts with industry leading reliability and durability."
For more information about Delphi and its operating subsidiaries, visit Delphi's Virtual Press Room at http://www.delphi.com/media .
FORWARD LOOKING STATEMENT
All statements contained or incorporated in this press 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, volume growth, awarded sales contracts or statements expressing general optimism about future operating results) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2003. In particular, the achievement of projected levels of royalties and profit margins over a licensing agreement will depend in part on customer demand which may be affected by, among other things, uncertainty of product development and manufacturing, uncertainty about obtaining and maintaining FDA regulatory clearances and the timing of receiving marketing clearances, uncertainty relating to third party reimbursement, ability to convince health care professionals and third party payers of the medical and economic benefits of the licensed products, changes in general economic conditions, and changes in our ability to satisfy service, technology, quality and other requirements. Delphi does not intend or assume any obligation to update any of these forward-looking statements.
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