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Delphi Teams With Calsonic on Hungary Compressor Venture

15 September 1999

Delphi Teams With Calsonic on Hungary Compressor Venture

    FRANKFURT, Germany, Sept. 15 -- Delphi Automotive Systems
announced at the Frankfurt Motor Show today that it has formed a joint venture
in Hungary to manufacture automotive air conditioning compressors for the
European market.
    The venture, formed by Delphi's Harrison Thermal division and Japan-based
Calsonic Corp., will be located on a green field site in Balassagyarmat,
approximately 80 kilometers north of Budapest (on the Hungary-Slovakia
border).  Delphi holds the majority ownership of the venture.
    Known as Delphi Automotive Systems-Calsonic Corporation (DAS-CC), the
joint venture will produce compact variable compressors (CVC), the next
generation of variable displacement piston technology.  It's the second CVC
joint venture in Europe between the two companies; Delphi Calsonic Compressors
in Douai, France, began production in January 1998.
    "Delphi continues to respond to Europe's growing air conditioning needs,
and this venture, coupled with our Douai operation, puts us in a leading
position in the European compressor market," said Jose Maria Alapont,
president, Delphi Automotive Systems Europe.
    Groundbreaking for the 14,000-square-meter facility is expected later this
year, with start of production slated for the first quarter of 2001.
    The plant will initially employ 170 people.  Plans call for that figure to
grow to more than 400 when full production is reached.
    The plant's annual capacity will exceed one million units.  It will serve
various European customers.
    Delphi and Calsonic now have four joint ventures manufacturing air
conditioning compressors, one of which includes Calsonic Harrison Corporation
in Japan.  That facility also manufactures CVCs for the European market.
    "This venture builds on Delphi's strong, long-running relationship with
Calsonic, and does so with a state-of-the-art product design that continues to
gather momentum, and one that will meet the air conditioning needs of our
European customers," said F. Timothy Richards, Delphi Harrison Thermal Systems
director of European operations.
    In addition to Japan and Europe, Delphi is also bringing CVC production to
North and South America.  It is establishing a facility in Kettering, Ohio,
and recently announced it will open a CVC operation in South America's
Mercosur Economic Community for 2001 model-year production.
    The CVC represents the next generation of variable displacement piston
compressor technology.  Featuring a "swash" plate configuration, the CVC
produces less noise and vibration than contemporary designs, while delivering
high-speed operation and best-in-class output in relation to mass and volume.
    With its wide range of displacement offerings and a high degree of design
flexibility, the CVC is adaptable to small, mid-sized and large vehicles.
    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 36
countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo.
Delphi can be found on the Internet at http://www.delphiauto.com .