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Delphi Announces Major Investment in Kokomo

11 February 1999

Delphi Announces Major Investment in Kokomo

    KOKOMO, Ind., Feb. 10 -- Delphi Automotive Systems plans to
invest approximately $63 million in its Kokomo operations to introduce the
latest technology in custom automotive integrated circuits for use in the
company's products.  The investment was announced by David B. Wohleen,
president of Delphi Delco Electronics Systems.
    "The investment will enhance Delphi's position as a technology leader in
vehicle electronics and will enable Delphi Automotive Systems to maintain in-
house capabilities for a key enabling technology used in many of our future
products," he said.
    Complex integrated circuits (ICs) are used in a variety of Delphi
products, including suspension control systems, and fuel, electrical and
ignition management systems.  An IC combines transistors and other electronic
components on a small chip.  It directs the sensing and computing power for
vehicle control systems.
    Today's announcement follows an agreement the company reached recently
with UAW Local 292.  The agreement, ratified by the union's membership last
week, paved the way for operational changes necessary to support the most
effective use of the company's integrated circuit manufacturing facility in
Kokomo.  "We have worked closely with UAW Local 292 on this project," Wohleen
explained, "and this is a demonstration of our ability to work together with
the Kokomo workforce to enable such investments."
    "We are pleased Delphi has decided to make this investment in Kokomo,"
said Rich Mince, shop chairman for UAW Local 292 in Kokomo.  "Our UAW members
are knowledgeable and capable, and with the latest technology and the right
investment, we can compete with anybody.  The agreement we reached with
management to enable this investment demonstrates our ability to work together
to provide job security for our members."
    "The project will enhance our ability to produce custom automotive
integrated circuits and will allow us to take full advantage of growth
opportunities as part of an independent Delphi Automotive Systems," Wohleen
said.
    Delphi Delco Electronics Systems, which comprises Delphi's Electronics and
Mobile Communications Sector, offers GM and non-GM customers a full line of
automotive electronics technologies -- everything from audio systems with
designed-in sound to electronics for air bag systems to an array of under-the-
hood electronics that increases fuel economy and lowers emissions.
    Delphi Automotive Systems Corporation , 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
169 wholly owned manufacturing sites, some 40 joint ventures and 27 technical
centers in 36 countries.  Regional headquarters are located in Paris, Tokyo
and Sao Paulo.  Delphi can be found on the Internet at
http://www.delphiauto.com.