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Delphi Automotive Partners with Daesung Electric

28 December 1998

Delphi Automotive Partners with Daesung Electric in S. Korea

    SEOUL, South Korea, Dec. 28 -- Daesung Electric Co. Ltd. and
Delphi Automotive Systems, Packard Electric division, are forming a joint
venture to support the design and manufacture of automotive components for
Korean automotive manufacturers.
    Delphi is assuming a 45 percent share of Daesung Electric.  The joint
venture will continue operating under the Daesung name and utilizing the
existing design, development and manufacturing structure.
    "This joint venture will enable Delphi Packard Electric to continue
growing and competing in the Korean domestic and global markets," said Scott
Graham, Delphi Packard Electric Korea managing director/country manager.
"Adding this joint venture further enhances and establishes Delphi Packard
Electric's manufacturing and distribution presence in South Korea and helps
support our Korean and Asia-Pacific customers."
    Daesung Electric is currently manufacturing and supplying Delphi Packard
Electric bussed electrical systems and other automotive components to Delphi's
customers under technical assistance agreements.  As an expert in automotive
switch and relay technology, Daesung will also work closely with Delphi
Packard Electric's European switch group to research future sales
opportunities across Asia Pacific.
    "We are working on localizing components, such as connectors and
terminals," Graham said.  "Utilizing Delphi's advanced technology, we would
like to contribute to the future development of the Korean automotive
industry.  Although Korea is currently going through difficult economic times,
we are confident that Korean automotive manufacturers will continue to be
successful in the domestic and global markets."
    By working closely with Daesung Electric's non-automotive products group,
Delphi Packard Electric also plans to explore new non-automotive products such
as electrical/electronic and electro-mechanical devices (mechatronics) for
commercial as well as consumer goods.  These products include such things as
communication, entertainment and other household goods.
    Daesung's current customer base includes Hyundai Motors (Kia Motors),
Daewoo Motors, Samsung Electronics, Daewoo Electronics and LG Electronics.
    "Delphi already has some non-automotive products, but we think Daesung
Electric will help us to expand our product base.  We have a number of
manufacturing processes that lend themselves to producing non-automotive
components, and we see a real advantage in exploring new markets globally,"
Graham said.
    Nick L. DiNardo of Delphi Packard Electric is named Daesung vice president
to take a part in managing the Daesung operation.  DiNardo has been working
closely with Daesung Electric for several years and was instrumental in
establishing the manufacturing of Delphi's products, such as bussed electrical
centers.
    Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is the
world's most diversified supplier of automotive components and systems.
Delphi has more than 200,000 employees and operates 171 wholly owned
manufacturing sites, some 40 joint ventures and 27 technical centers in 37
countries.  Regional headquarters are located in Paris, Tokyo and Sao Paulo.
Delphi Packard Electric, a division of Delphi Automotive, is an automotive
components supplier and the world leader in automotive power and signal
distribution systems worldwide.  Delphi can be found on the Internet at
http://www.delphiauto.com.
    Headquartered in Ansan, S. Korea, Daesung Electric is the Korean leader of
switches and relays for automotive parts and electrical/electronic appliances.
Daesung Electric occupies three manufacturing plants located in Ansan and
Chonan.  All three sites are ISO 9000 and QS9000 certified.  Daesung Electric
employs more than 700 people and also manufactures in Qingdao, China.