Remy and Phoenix International Collaborate on Innovative Hybrid Motors & Controls to Reduce Costs

PENDLETON, Ind., Sept. 17 -- Remy International and Phoenix International Corporation have reached an agreement to work together in the production of a standardized platform of high performance motors and controls for hybrid and electric vehicles. This new approach to motor/inverter design was an integral part of the $60.2M manufacturing grant awarded to Remy and Phoenix International by the U.S. Department of Energy (DOE).

This new approach to product design and manufacturing will greatly reduce the excessive engineering costs and development time associated with the current approach of custom designs. The focus will be on high efficiency and high durability systems necessary for truck, bus, military, and various off-road equipment manufacturers. The matched motors and controllers will be offered to the market independently or as an integrated system.

According to John Weber, Remy CEO, "Remy is delighted to be working with Phoenix International on this project because of their reputation for product performance in the most rugged and demanding applications. We also share a common strategy for standardizing our products in order to lower barriers to entry for customers in this emerging market."

Significant savings are expected as a result of this collaborative effort. A standardized product and testing platform provides OEMs and their supplier's savings on engineering costs, tooling costs, and component costs. A greater amount of standardization will not only decrease costs by millions of dollars but also help manufacturers get products to market much faster.

"Phoenix International is excited to work with Remy, who is leading technology innovation in the production of hybrid electric motors. We are confident our companies' combined strengths and expertise can create the cost-effective environment necessary to draw many more vehicle manufacturers to the hybrid marketplace," states Phoenix International President Chuck Kaufman.

Not only does this innovative solution lower costs and eliminate unnecessary time-to-market delays, but it also helps strengthen the American economy. This investment is expected to create nearly 1,000 highly skilled jobs in the United States for Remy and their supply base. It will also help establish a strong domestic manufacturing base for electric drive motor technology and accelerate the use of electric drive vehicles with higher fuel efficiency. The benefits of this relationship have a broad impact on thousands of American workers, fuel consumption, and our environment.

Remy has the largest hybrid motor production capacity and the most advanced hybrid testing facility in North America. The DOE and other third-party tests have proven Remy's electric motor/generator has higher power density and higher torque density than any other product on the market today; thus creating higher output while using far less space and weight than other motor/generators.

Like Remy, Phoenix International has been producing quality integrated electronics that can withstand the harshest physical and electrical environments for customers in a wide range of heavy equipment and industrial/commercial market applications. Phoenix International has expanded to be a full line provider of high voltage Power Inverters with industry leading power densities and a cost effective embedded software for motor controls.

The first matched motor and controller is scheduled for October of 2009 based on Remy's high voltage hairpin "HVH" technology. These products will have superior power density, superior torque density, higher efficiency, and better durability than other motor/generators available on the market today.

About Remy International, Inc.

Remy International, Inc., headquartered in Pendleton, Indiana, is a leading global manufacturer, remanufacturer and distributor of Remy brand starters, alternators and hybrid power technology and Delco Remy brand heavy-duty systems. To learn more, visit the Remy brand website at www.remyinc.com.