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Delphi Grows Modular Door Business in Europe With More Integrated Solutions

16 September 1999

Delphi Grows Modular Door Business in Europe With More Integrated Solutions, More New Contracts
    FRANKFURT, Germany, Sept. 15 -- Delphi Automotive Systems
announced today that it has restructured its modular door
portfolio to include four different levels of integration to suit the specific
needs of any automotive manufacturer.
    As further evidence of its growth in Europe, Delphi also announced it will
supply a Level-3 Modular Door System to a future model of DaimlerChrysler's
Mercedes Actros, representing Delphi's most integrated Modular Door
application to date.

    Delphi Offers Four Levels of Integrated Modular Door Solutions
    "Delphi's expertise spans the full spectrum of door architecture, from
components all the way up the value stream to providing complete door modules
and sequencing them into a vehicle production line," said Gary Nordberg,
engineering group manager of Modular Door Systems for Delphi Automotive
Systems.
    Delphi's portfolio of Modular Door Systems is classified in four levels --
higher level numbers designate greater degrees of integration.  For example,
Level-1 contains door hardware and trim components, such as latches,
connectors and trim.  In Level-2, Delphi integrates components into multi-
system door builds.  With a Level-3 Modular Door System, Delphi integrates a
door's structural components into a multi-system module; the module is based
on either hardware or trim.  In Level-4, Delphi has full door responsibility
and delivers a complete door to the vehicle manufacturer, from inner trim to
outer skin.
    At higher levels, vehicle manufacturers will tap Delphi's ability to
design and execute modular doors that comprehend and enhance a vehicle's
structural integrity and crashworthiness.
    "Delphi's four levels of integrated modular doors comprehend the needs of
vehicle manufacturers at any of the different stages along the modularity
value chain.  We simplify door solutions for our customers because we can grow
with them as their needs change," said Nordberg.
    In certain current production applications, Delphi's door module has led
to an 80 percent reduction in installation time, a 25 percent improvement in
warranty costs, and a 50 percent reduction in floor space, while reducing
total fasteners and components by 70 percent.
    "Through more than a dozen years of module supply experience, Delphi
recognizes that not every vehicle manufacturer will be able to achieve these
levels of improvement at every facility.  Each manufacturer has certain
capabilities determined by their own unique set of variables, such as plant
physical structure or production system," said Nordberg.
    "Some vehicle manufacturers are well on their way up the modularity value
chain, while others are taking a more cautious approach to adoption of modular
assembly.
    "Delphi can supply a vehicle manufacturer anything from a component to a
full door -- from a Level-1 module to a Level-4 system -- and is flexible
enough to work with the customer at any level.  We can help the manufacturer
determine where they fit in the value-chain and literally grow with them over
time.  This versatility and experience is unique to Delphi's portfolio," said
Nordberg.

    Delphi Modular Door Systems Business Expanding in Europe
    "I am excited to announce that this year marks several major milestones
for Delphi's door business in Europe, including supply of Level-1, Level-2,
and Level-3 door programs to European vehicle manufacturers," said David
Cairoli, director of European Operations, Delphi Interior Systems.
    Delphi recently won significant door latch business with a major European
vehicle manufacturer for Delphi's unique Global Latch latching system.
    The Global Latch, a Level-1 door component, uses a common design footprint
while providing the opportunity to add differentiating features.  It also
offers the vehicle manufacturer superb versatility because features can be
added as needed without requiring complete redesign.
    In the very near term, Delphi will produce its first modular door system
in Europe: Level-2 Modular Doors for MAN heavy-duty trucks.
    "Delphi's first Level-3 Modular Door System produced anywhere in the world
will be in support of DaimlerChrysler in Europe.  This will be for a future
Mercedez-Benz Actros truck program," said Cairoli.
    In the Actros program, Delphi has full door integration responsibility of
all systems contained within the door, including thermal, electrical,
electronics, trim and mechanical hardware systems.
    Delphi first produced door latch modules in the mid-1980s and began
producing multi-system door modules in 1991.  Since that time, Delphi has
supplied vehicle manufacturers with more than 23 million door modules.  This
year alone, the company will produce nearly 4 million door modules.  Delphi is
developing modular door solutions for a number of passenger car and truck
customers in Europe, Asia and North America and expects the modular door
systems market to increase to nearly 11 million units next year and more than
triple by 2003.
    In modular door systems, Delphi is truly driving tomorrow's technology.

    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 .