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Delphi Forms Joint Venture in Malaysia to Supply Wiring to ASEAN Region

2 September 1999

Delphi Forms Joint Venture in Malaysia to Supply Wiring to ASEAN Region

    KUALA LUMPUR, Malaysia, Sept. 2 -- Delphi Automotive Systems
today announced the formation of a joint venture to support the
design and manufacture of power and signal distribution systems (PASDS) for
automotive manufacturers in Malaysia and the ASEAN region.
    Delphi's Packard Electric Systems division will manage the joint venture
with Hasu Industries Sdn Bhd in Kuala Terengganu, Malaysia, and consolidate
its Kota Bharu operation.  The new company will operate under the name Delphi
Packard Electric Malaysia Sdn Bhd, and Delphi will assume a 60 percent
controlling interest.
    "This joint venture will help ensure a strong Delphi presence in Malaysia,
and expands its global manufacturing footprint into the ASEAN region to
support local customers," said Majdi Abulaban, managing director, Delphi
Packard Electric ASEAN.
    Delphi will implement its global quality system, global manufacturing
system and will provide extensive training to the joint venture's workforce.
The new company will also have access to Delphi's global network of
engineering, manufacturing and technical design expertise.
    Since the beginning of 1999, Delphi has announced six asset acquisitions,
joint venture agreements or partnerships in the Asia Pacific region.  Delphi
operates 39 joint ventures worldwide and 19 in Asia Pacific.
    The new joint venture is the leading PASDS producer in Malaysia, has
received ISO-9000 certification and occupies a 150,000-square-foot facility in
Kuala Terengganu, on the northeast coast of Malaysia.  From here, the joint
venture will supply wiring harnesses to the ASEAN region's top two automotive
manufacturers -- Malaysia's state-owned Proton and Toyota Motor Corp -- as
well as to BMW AG, Ford Motor Co., Isuzu Motors Ltd., DaimlerChrysler AG,
Nissan Motor Co. Ltd. and AB Volvo in the region.
    ASEAN refers to the Association of South East Asian Nations, which is a
regional alliance formed in Bangkok in 1967.  The original members were
Indonesia, Malaysia, the Philippines, Singapore and Thailand.  The alliance
has since grown to 10 members with the addition of Brunei, Vietnam, Laos,
Myanmar and Cambodia.
    "We are very excited to participate in the growth and development of the
Malaysian automotive industry, and to bring new technology to our customers in
this very important global market," said Tom Sosnowchik, director, Delphi
Packard Electric, Asia Pacific.  "Proton is the largest vehicle manufacturer
in the ASEAN region, and it expects its volumes to grow significantly over the
next 10 years."
    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, 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