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Delphi Expands Business With Nissan; Contract Means New Investment for Saginaw

29 June 1999

Delphi Expands Business With Nissan; Contract Means New Investment for Saginaw

    SAGINAW, Mich., June 29 -- Delphi Automotive Systems
announced today it has significantly expanded its business with
Nissan Motor Co., Ltd., prompting additional investment in precision
manufacturing technology for integral steering gears produced here.
    Nissan recently awarded Delphi a contract to provide STEER-LITE(TM)
lightweight integral steering gears for all Nissan trucks, including the
Nissan Frontier and Xterra Sport Utility Vehicles, beginning with Nissan's
2000 model year.  Revenue details of the contract were undisclosed.
    "This contract is a prime example of how our status as an independent
company is helping us diversify our customer base," said Paul Tosch,
president, Delphi Saginaw Steering Systems.  "It demonstrates our ability to
support our global customers from our U.S. manufacturing sites."
    The integral steering gears will be produced at Delphi Saginaw Steering
Systems' Plant 7 in Saginaw, Mich., USA.  The production contract requires
approximately 46 jobs for Nissan gear production in the plant.
    Delphi will support the added Nissan gear production by investing in
excess of $15 million (U.S.) in new tooling and equipment for Saginaw, Tosch
said.  Delphi has invested over $33 million in the last 18 months for
precision gear manufacturing technology to modernize and expand production
capacity for STEER-LITE integral gears designed for other leading truck and
sport utility vehicle manufacturers.
    "Winning this contract is a direct result of our entire team working
together, and should help us remain a viable and competitive business into the
future," Tosch said.
    Chris Vincent, Nissan customer manager for Delphi Saginaw Steering
Systems, said Delphi's combination of technology and experience will bring
great value to Nissan's programs.  "Our gear is a low-mass, high-durability
solution for performance, cost and mass reduction challenges facing all our
customers," he said.
    Delphi is the world's largest producer of integral steering gears and also
produces a full line of manual and power assist rack and pinion gears for the
passenger car and light truck market.
    Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is a
world leader in automotive component and systems technology.  Delphi's three
business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical
Architecture; and Electronics & Mobile Communications -- provide comprehensive
product solutions to complex customer needs.  Delphi has more than 196,000
employees and operates 168 wholly owned manufacturing sites, 51 customer
centers and sales offices, and 27 technical centers in 36 countries.  Regional
headquarters are located in Paris, Tokyo and Sao Paolo.  Delphi can be found
on the Internet at http://www.delphiauto.com.