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Delphi Automotive Systems Announces Plans to Seek Buyers For Specific Product Lines

18 September 1997

Delphi Automotive Systems Announces Plans to Seek Buyers For Specific Product Lines

    TROY, Mich., Sept. 18 -- Delphi Automotive Systems announced
to its employees today that it will begin exploring proposals from interested
buyers to purchase several lines of business, including:

    *  Delphi Chassis' coil springs operations in Livonia and Flint, Mich.,
       which employ approximately 300 employees;
    *  Delphi Interior & Lighting Systems' lighting business, with operations
       in Anderson, Ind., and Monroe, La., and an engineering center in
       Anderson.  Employment totals approximately 4,000 employees.
    *  Delphi Interior & Lighting Systems' seating business, with an
       engineering center in Warren, Mich. and operations in Grand Rapids and
       Auburn Hills, Mich.; Juarez, Mexico; Spain; Poland; South Africa;
       Italy; Turkey; and England.  Employment in these operations totals
       approximately 7,000.

    In separate announcements at each of the locations, senior managers told
employees that the potential sales are part of the on-going refinement of the
divisions' product portfolios.
    Rodney O'Neal, vice president and general manager of Delphi Interior &
Lighting said the moves will help concentrate resources on core products.
"These are mature businesses in crowded markets," O'Neal said.  "Exploring
other options for seating and lighting will allow us to concentrate our
resources on growth businesses -- cockpit, air bags and door modules."
    O'Neal said other companies, which consider seating and lighting as their
core business, may be able to better invest in these operations and help them
grow.
    "We want our future product portfolio to line up with our competitive
strengths," O'Neal said.  "This is a difficult option to explore, but we need
to improve the long-term competitiveness of Delphi Interior & Lighting
Systems."
    Alan Dawes, vice president and general manager of Delphi Chassis Systems,
said the Livonia coil springs operation has put tremendous effort toward
making the operation competitive.  However, despite the work over the past
several years, it "became apparent that the necessary productivity and
profitability targets cannot be achieved, and we need to seek alternatives for
this business."  Dawes said the business may be better suited with other
companies which consider these products as a core business.
    The closure of the Livonia facility had originally been announced in
December 1992.  However, an agreement in 1993 resulted in an exit of the
bumper business only.  Subsequently, due to the inability of the plant to meet
certain competitive benchmarks, a decision was made in January 1996 to exit
the leaf spring and modular strut businesses.
    Dawes and O'Neal acknowledged the impact of these announcements on
employees and the communities in which the plants are located.  "We will work
with leaders in the respective operations and the surrounding communities to
assure a smooth transition," O'Neal said.  "We are committed to maintaining an
uninterrupted supply of components to our customers, and we want to make these
changes as painless as possible for our employees."
    "We will concentrate on seeking buyers who have strong operating track
records," Dawes said.  "It's important for us to make certain that the on-
going enterprise remains a strong supplier for our customers."
    Dawes and O'Neal said they are committed to strategically expanding their
divisions' business.  Growth, they said, could come in the form of additional
joint ventures or acquisitions.  To date, Delphi Automotive Systems has 46
joint ventures in addition to its 198 operations in 35 countries around the
world.

SOURCE  Delphi Automotive Systems