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Delphi Creates Global Aftermarket Group To Expand Product Lines

13 October 1999

Delphi Creates Global Aftermarket Group To Offer Expanded Product Lines, Increase Sales

    PARIS, Oct. 13 -- Delphi Automotive Systems , the
largest supplier of automotive components and systems to the world's Original
Equipment Manufacturers (OEMs), has established a new division, Delphi
Aftermarket, to bolster its brand support and sales in the aftermarket.  The
announcement was made today at Equip 'Auto, a vehicle and aftermarket show
that takes place every other year in Paris.
    Delphi's Aftermarket division will be headed by Francisco A. (Frank)
Ordonez, Delphi's general manager of Aftermarket.  Delphi will reorganize all
of the company's existing aftermarket operations regionally to create a
single, cohesive unit to offer a diversified product line that covers all
vehicle makes while providing increased service and support to all of its
global aftermarket customers.  The reorganized unit expects to double its
revenues in Europe by the middle of the next decade.
    The first priority of this unit is to enhance relationships between Delphi
and major European customers.  Plans call for an expanded Delphi Aftermarket
organization to support the company's growth strategy.  The increased focus on
the aftermarket may also yield acquisitions that can bring additional
technical, distribution or product expertise to Delphi.
    "To be the dominant player in the aftermarket, we have to produce a
superior product -- a tradition we intend to continue -- and reorganize our
existing operations to create new efficiencies that will make us even more
responsive to our customers' needs," said Jose Maria Alapont, vice president,
Delphi Automotive Systems, and president, Delphi Automotive Systems Europe.
"Creating a new division, with the mission of broadening our product range and
increasing our distribution capabilities, is essential to achieving our goals
in the aftermarket."
    Delphi's aftermarket initiative also calls for streamlining its existing
product distribution system by using value stream mapping techniques,
inventory management, and enhanced forecasting throughout the entire
distribution chain.  The company intends to apply the principles of lean
enterprise management to its distribution channels throughout the company --
from order to fulfillment.
    "Our aftermarket activities will focus on improving the coordination and
communication between our different product lines to provide our customers
with products that set the industry standard for quality, while reducing our
costs and increasing our profits," said Ordonez.  "The worldwide aftermarket
needs a reliable source of parts that is supported by a proven distribution
network and logistical capabilities.  Delphi's extensive OEM experience,
global manufacturing network and proven ability to develop cutting-edge
technologies uniquely positions the company to fill this void."
    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 28 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