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Calsonic, Delphi Expanding Joint Venture

2 August 1999

Calsonic, Delphi Expanding Joint Venture To Build Next-Generation Air Conditioning Compressor

    TOKYO, Aug. 2 -- Calsonic Corporation and Delphi Automotive
Systems' Harrison Thermal division are expanding their joint venture in Japan
to accommodate production and export of a next-generation automotive air
conditioning compressor the two companies have developed.
    Established in 1986 as Calsonic Harrison Corporation, the joint venture
will add compact variable compressor (CVC) production to its facility in
Utsunomiya (Tochigi prefecture).  Calsonic holds 51 percent of the venture to
Delphi's 49 percent.  The joint venture is now manufacturing current
generation variable displacement compressors (termed V5 and V6) for the
Japanese market.
    Calsonic plans to supply the new CVC, which will come in six- and seven-
piston configurations, to BMW in Europe.  Delphi will support the expansion.
    Production of the CVC is expected to begin by the fourth quarter of this
year, with full capacity forecasted at 450,000 units annually.  Approximately
170 people will be added to the venture's employment to support the expansion.
    "Adding CVC production to this facility builds on the strong relationship
we have with Calsonic Corporation, and allows both companies to continue to
move towards dominance of the European compressor market," said Ronald M.
Pirtle, president, Delphi Harrison Thermal Systems and vice president, Delphi
Automotive Systems.
    Delphi and Calsonic operate two joint venture facilities in Douai, France
that produce compressors, one of which manufactures the CVC for Europe's
growing demand for automotive air conditioning.
    The CVC can be configured with a number of displacement offerings, and its
flexible design and long list of capabilities make it adaptable to all OEM
applications.  It features best-in-class output as it relates to mass and
volume, high-speed operation, and produces less noise and vibration than
contemporary compressor designs.  Its efficient power consumption matches the
needs of the European 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
approximately 201,000 employees and operates 168 wholly owned manufacturing
sites, 38 joint ventures, 51 customer centers and sales offices, and 27
technical centers in 37 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo.  Delphi can be found on the Internet at
http://www.delphiauto.com