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Delphi Acquires 100 Percent Interest in Baicheng Joint Venture

1 November 1999

Delphi Acquires 100 Percent Interest in Baicheng Joint Venture

    SHANGHAI, Oct. 29 -- Delphi Automotive Systems
today announced it has acquired 100 percent interest in its joint venture with
Baicheng Automobile Wire Factory.
    Consisting of two manufacturing facilities in northern China, Delphi
Packard Electric Baicheng Co. Ltd. was formed in 1994, with Delphi as the
majority partner.  Prior to this announcement Delphi owned 53 percent of the
operation.
    "Acquiring 100 percent interest in our Baicheng joint venture gives Delphi
more flexibility in the operation and strengthens our manufacturing footprint
in the Asia Pacific region," said Nancy Gougarty, managing director, Delphi
Packard Electric China.  "Delphi continues to pursue strategic investment
opportunities in China, as projections for continued growth in the region's
automotive industry remain strong."
    Delphi Packard Electric Baicheng manufactures automotive cable for
Delphi's China facilities here, Changchun and Guangzhou, as well as for
Delphi's Indonesia plant and HaFei, a leading minivan manufacturer in China.
It also supplies wiring harnesses for Audi and Jetta automobiles manufactured
for domestic sale by the First Auto Works-Volkswagen (FAW-VW) joint venture,
and produces ignition cable for Mitsubishi and Fuji Heavy Industry in Japan.
    "This investment bolsters Delphi's relationship with global customer
FAW-VW by giving them direct access to Delphi's worldwide engineering and lean
manufacturing expertise," Gougarty said.  "Also, the Baicheng acquisition
gives Delphi wholly owned operations in northern and southern (Guangzhou)
China, which is a strategic advantage as customers set up manufacturing
facilities here."
    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