Newly Signed EDS and Delphi Contract Helps Position Delphi for Independent Growth
30 June 1999
Newly Signed EDS and Delphi Contract Helps Position Delphi for Independent GrowthEDS Plays Critical Role in Support of Delphi's Seamless Transition to Independent Enterprise TROY, Mich., June 30 -- The challenge: to separate the critical business and systems infrastructure functions of Delphi Automotive Systems from General Motors to launch the 36th largest company in the U.S., a first-ever feat on such a global scale. The window of opportunity to accomplish separation of the critical U.S. and Brazilian systems: 108 days. The result: EDS successfully completed the majority of overall systems separation and, in the process, helped Delphi accomplish the goal of launching an independent enterprise with virtually no disruption to its business systems. Today, EDS and Delphi announced the signing of master service and U. S. service agreements. The five-year contracts, of which both companies agreed not to disclose financial details for competitive reasons, call for EDS to continue to provide a myriad of existing services. "As an independent company, Delphi cannot afford to miss a beat," said Delphi Vice President and Chief Information Officer Peter Janak. "We must be agile, responsive and innovative, and our systems operations must enable us to meet competitive challenges in the marketplace." Today's announcement provides the foundation to place Delphi among the top three EDS clients. The company has more than 9,000 clients globally. EDS will enhance a range of Delphi IT initiatives. EDS will be providing ANX(R) (Automotive Network Exchange) support and connectivity, which enables Delphi to work collaboratively with its suppliers, as well as OEM clients. ANX(R) is the automotive industry Extranet designed to connect OEMs to suppliers, and suppliers to each other. EDS also is providing engineering and manufacturing IT support to Delphi facilities in 36 countries. "Delphi is a new company and, in many ways, so is EDS. We are pleased that our depth of manufacturing expertise and knowledge of information technology helped retain this important client. Our previous relationship helped us solidify Delphi's information infrastructure during the transition to independence, and this new relationship -- enhanced by our E.Solutions capabilities, will help us team with Delphi to create options for the future," said EDS Executive Vice President Paul Chiapparone. During Delphi's recent separation from GM, EDS managed a series of projects designed to create a computing and communications infrastructure to support Delphi's new corporate structure. "EDS has transformed our way of working with Delphi," added Chiapparone. "The fact that Delphi trusted us to separate their IT systems from GM and that we are now able to retain the business with an independent Delphi speaks to our mutual respect and teamwork. We are committed to providing leading-edge technologies in conjunction with tried-and-true services to help Delphi stay in the forefront of the Digital Economy. "Through our pioneering work with ANX(R) and digital supply chain management, as well as E.Solutions innovations, EDS stands uniquely qualified to serve as an agent of change for the new Delphi." Delphi Automotive Systems, with headquarters in Troy, Mich., 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 approximately 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 Paulo. Delphi can be found on the Internet at http://www.delphiauto.com. EDS, a leader in the global information technology services industry for more than 35 years, delivers management consulting, electronic business solutions, and systems and technology expertise to improve the performance of more than 9,000 business and government clients in about 50 countries. EDS reported revenues of $16.9 billion in 1998. The company's stock is traded on the New York Stock Exchange and the London Stock Exchange. Visit EDS via the Internet at http://www.eds.com. For more information, contact Regina R. Strong, APR of Electronic Data Systems, 248-265-5080, or email, regina.strong@eds.com; or Jennifer Tew of Delphi Automotive Systems, 248-813-2527, or email, jennifer.tew@delphiauto.com.