The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

European New Business Wins Speak to Delphi's Competitive Advantage

15 September 1999

European New Business Wins Speak to Delphi's Competitive Advantage As Independent Corporate Entity
         Delphi Europe Posts $840 Million in First-Half New Business:
             60 Percent from Customers Other Than General Motors

            Announced Today: New Wiring Contract Triples Delphi's
                   Electrical Systems Business with Peugeot

    FRANKFURT, Germany, Sept. 15 -- With $840 million in new
business on the books for the first half of 1999, Delphi Automotive Systems
Europe is clearly enjoying one of the benefits of full
independence from former parent General Motors Corp. .
    "This is an outstanding endorsement of Delphi as a fully independent
supplier," said Jose-Maria Alapont, President of Delphi Europe.  "Every major
vehicle manufacturer is looking closely at what we can offer and, as the sales
figures prove, they are finding a strong company with an exceptional
capability."
    Of the $840 million in new business booked during the first six months,
$508 million (around 60 percent) is from vehicle manufacturers other than
General Motors and its subsidiaries, including Opel.  Delphi new business
booked worldwide during the first six months of 1999 was $15 billion, 33
percent ($5 billion) of which was with customers other than General Motors.

    Peugeot Contract Announced
    New business announcements made by Delphi today at the Frankfurt
International Motor Show include a contract to design and supply wiring
harnesses for use in a 2001 model year vehicle for PSA Peugeot Citroen.
Delphi's Packard Electric Systems division will be a full-service power and
signal distribution systems supplier for an undisclosed Peugeot Citroen high-
volume vehicle.  Delphi will also be strongly involved in redesigning the
electrical/electronic architecture on all future Peugeot vehicles.
    "This significant new business win makes Delphi one of Peugeot's largest
power and signal distribution systems suppliers, and success with this program
will position Delphi well for future growth opportunities with Peugeot," said
David Burgner, managing director, Delphi Packard Electric Europe.
    The undisclosed Peugeot vehicle is scheduled to go into production in late
2000 for both European and international export sales.
    "Delphi has an excellent opportunity to demonstrate its advanced
technologies to Peugeot and enhance this vehicle's electrical/electronic
architecture," said Jean-Claude Friloux, Delphi Packard Electric's Peugeot
customer manager.  "In the short term Delphi will integrate an electronic
control unit made by Delphi Delco Electronics.  Longer term, Delphi will
propose integrating technologies from its 200X architecture vision displayed
at the 1999 Frankfurt Auto Show."

    Calsonic Joint Venture
    Also at Frankfurt on Wednesday, Delphi announced 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.
Previously announced contracts booked during the period -- and contributing to
the $840 million in new European business for 1999 -- include:

    *  Development for BMW of a unique new Solid Oxide Fuel Cell to supply
energy for vehicle electrical systems.
    *  A highly integrated modular door for DaimlerChrysler's heavy trucks.
    *  Major European airbag contracts with Volkswagen and Opel.
    *  Suspension systems for Rover.

    BMW
    For BMW, Delphi is working to introduce a vehicle that uses its new Solid
Oxide Fuel Cell (SOFC) technology to generate energy for the electrical
systems.  The SOFC is a new and highly innovative type of fuel cell that is
less sensitive to hydrogen impurities than conventional Proton Exchange
Membrane (PEM) fuel cells.  This allows it to operate from hydrogen produced
on-board by a fast and cost-effective gasoline reformer.  The development
agreement with BMW was signed in April.

    DaimlerChrysler
    For DaimlerChrysler, Delphi is involved both with the vehicle
manufacturers' heavy-duty truck division, as well as the M-Class sport utility
vehicle.
    Delphi's first Level-3 Modular Door System produced anywhere in the world
will be in support of DaimlerChrysler in Europe, for the Mercedes-Benz Actros
truck program.  Delphi has full door integration responsibility for all
systems contained within the door, including thermal, electrical, electronics,
trim and mechanical hardware systems.
    Also during the last six months, Delphi was awarded a four-year contract
to supply M-Class modular cockpits for Mercedes-Benz U.S. International
(MBUSI) in Graz, Austria.  The contract, estimated to generate more than $28
million, involves orchestrating complex logistics to supply the modules from
Delphi's modular build and sequencing plant close to the MBUSI facility in
Tuscaloosa, Alabama.
    For the DaimlerChrysler contract Delphi manages a supply chain that
includes 46 suppliers in six countries.  These suppliers provide more than 180
components, including the steering column; heating, ventilation and air
conditioning system; upper and lower instrument panel; air conditioning
outlets; glove box; instrument cluster; passenger-side airbag and wiring
harness.  There are currently more than 8,000 different possible cockpit
specifications.

    Volkswagen
    The Volkswagen contract is for a future global airbag program.  To respect
customer product plans, no details on this exciting program will be publicly
disclosed at this time.

    Opel
    For Opel, Delphi will supply driver and passenger airbags globally.

    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in automotive components 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 36
countries.  Regional headquarters are located in Paris, Tokyo and Sao Paulo.
Delphi can be found on the Internet at http://www.delphiauto.com .