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Delphi to Close or Sell 21 Plants in U.S.

CHICAGO, March 31, 2006; Reuters reported that bankrupt auto parts maker Delphi Corp. on Friday filed court papers to reject its U.S. labor agreements and unprofitable parts contracts with former parent General Motors Corp.

The company wants the ability to cut wages and benefits for its U.S. hourly workforce that is represented by unions and the flexibility to execute a plan to close or sell some 21 U.S. unionized plants and focus on a core eight plants.

Delphi sees the following plant sites as core or noncore under its plan, a key to exiting Chapter 11 successfully. Production at some of the noncore sites could be consolidated within production that remains.

CORE MANUFACTURING SITES (BY STATE):

INDIANA - Kokomo

MICHIGAN - Grand Rapids

MISSISSIPPI - Brookhaven, Clinton

NEW YORK - Lockport, Rochester

OHIO - Vandalia, Warren

U.S. UNION SITES TO BE SOLD OR CLOSED (BY STATE):

ALABAMA - Athens, Cottondale, Gadsden

GEORGIA - Fitzgerald

INDIANA - Anderson

MICHIGAN - Adrian, Coopersville, Flint, Saginaw (E&C) and Saginaw (Steering)

MISSISSIPPI - Laurel

NEW JERSEY - Brunswick

OHIO - Columbus, Home Avenue (Dayton), Kettering, Moraine, Needmore Road (Dayton) and Sandusky

TEXAS - Wichita Falls

Wisconsin - Milwaukee (E&C) and Milwaukee (E&S) (Source: declaration of Delphi Chief Restructuring Officer John Sheehan filed with the bankruptcy court)