Delphi Provides Cockpit to Sporty Interior on New Mercedes M- & R-Class Vehicles

TROY, Mich., May 3, 2005 -- Delphi Corp. continues to strengthen its cockpit and interior business line with full cockpit module design and build responsibility on the new Mercedes M- and R-Class vehicles.

Delphi supplies the instrument panel, console, and entire cockpit assembly on the all-new 2006 M-Class sport utility vehicle, which premiered at the North American International Auto Show in January. The same content will be featured on the automaker's all-new R-Class Grand Sport Tourer, due out later this year.

This business represents the largest contract Delphi has ever had with Mercedes, although the first generation M-Class also featured a cockpit developed and manufactured by Delphi.

"Delphi is proud to be responsible for the cockpit system integration on this impressive Mercedes platform," said Lon Offenbacher, Delphi business line executive, cockpits and interior systems. "By becoming involved early in the design and development stage -- a time when fit, form and function come together -- we feel we've provided great value to the look and feel of the interior. We're excited to be entering the build phase and look forward to providing Mercedes with a flawless product."

The key technologies utilized on these programs include: Sprayed Urethane Skin, Seamless Hidden Passenger Airbag Deployment Door and Thin-Walled, Long Glass Fiber Injection Molded Retainer. Delphi custom builds each cockpit configuration on the program.

Delphi is also responsible for the full wiring harness content on the M- Class and R-Class Grand Sport Tourer. Building and shipping assemblies through a unique manufacturing process jointly developed with Mercedes, each Mercedes passenger harness, the main vehicle body wiring assembly and by far the largest and most complex, is customer specific, with as many as 30,000 different configurations possible.

Delphi custom builds each harness within its Mexico operations to a line- item match of the exact content in every model that rolls down the line at Mercedes' Tuscaloosa, Alabama assembly plant. The M-Class start of production marked Delphi's North American debut of this custom-build process for the customer, one that allows consumers to select, in a la carte-like fashion, among the vehicles' numerous features and options to personalize their content. It also eliminates the automaker's need to stock a myriad of part numbers; the customer-specific nature of the process means there are no part numbers.

These contracts are further evidence of Delphi's role as a development partner and supplier for international projects. Delphi sees DaimlerChrysler as a highly strategic customer in its efforts to diversify its customer base. Delphi's sales with DaimlerChrysler have recently grown making it one of the biggest single customer accounts in terms of sales revenue behind GM.