Delphi Wins Satellite Radio Contract to Supply Receivers for GM Vehicles
23 November 1999
Delphi Wins First-Ever Satellite Radio Contract to Supply AM/FM/XM Receivers for GM Vehicles
TROY, Mich., Nov. 23 -- Delphi Automotive Systems
announced today that it has been awarded the first ever satellite radio
manufacturing order. Delphi recently completed a deal to develop and
manufacture original equipment radios capable of receiving AM, FM and XM
Satellite Radio signals for new General Motors vehicles.
The deal represents a multi-year purchase order for radios; specific terms
of the agreement were not disclosed.
"We are very pleased to receive this initial order for satellite band
receivers," said David B. Wohleen, president of Delphi Delco Electronics
Systems. "From putting the first car radio into an instrument panel to
today's satellite receiver business, we are uniquely positioned to help our
customers take vehicle entertainment and information systems into the next
century."
Ron Zarella, President of GM North America, commented, "Superior
entertainment and information services will play a significant role in the
automobile of the future. We look forward to working with Delphi and XM to
build the next generation of radios for the enjoyment of GM car buyers."
Hugh Panero, XM's president and CEO, added, "This purchase order is
another key step in XM's effort to bring a new band of radio to listeners
across the country. Delphi has a long history of recognizing winning
innovations in radio technology for the car, and we are very pleased that this
automotive audio leader will soon be manufacturing AM/FM/XM compatible radios.
The contract between GM and Delphi validates our technology and our business
model."
Radios and antennas capable of receiving a proprietary XM Satellite signal
will be manufactured by Delphi Delco Electronics Systems, a subsidiary of
Delphi Automotive Systems. The consumer interface on the new receivers will
be simple and user-friendly, featuring existing band selection methods to
provide FM1, FM2, AM and the new XM Satellite Radio S-Band selections. The S-
Band will provide the channel, type of music and song name on its LED display.
Delphi Delco Electronics Systems produces a complete product line of
original equipment audio systems, providing everything from antennas, speakers
to a broad range of head units that accommodate various playback devices.
XM Satellite Radio will use direct satellite-to-receiver
broadcasting technology to provide listeners in their cars and at home with
crystal-clear sound, from coast to coast. The subscription service is
scheduled to start during the first half of 2001 for $9.95 a month. XM will
offer as many as 100 national channels of music, news, entertainment and
children's programming directly from its satellites to cars, other vehicles
and homes. American Mobile Satellite Corporation holds
controlling interest in the company, whose other investors include industry
leaders Clear Channel Communications Inc.; DIRECTV, Inc., a unit of Hughes
Electronics Corporation; General Motors Corporation; and a private investment
group comprised of Columbia Capital, Telcom Ventures L.L.C., and Madison
Dearborn Partners Communications. For more information, please visit
http://www.xmradio.com .
Founded in 1908, General Motors Corporation (http://www.gm.com ) has
grown into the world's largest full-line vehicle manufacturer. In 1998, GM
partnered with over 30,000 supplier companies worldwide. As the largest U.S.
exporter of cars and trucks, and having manufacturing and assembly operations
in 50 countries, General Motors has a global presence in over 190 countries.
Along with designing, manufacturing, and marketing of vehicles, General Motors
has substantial interests in telecommunications and space, consumer
electronics, financial and insurance services, locomotives, and heavy-duty
automatic transmissions.
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 and Propulsion; Safety, Thermal & Electrical &
Architecture; 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,
Brazil. Delphi can be found on the Internet at http://www.delphiauto.com .
Forward Looking Statements
The private Securities Litigation Reform Act of 1995 (the "Act") provides
a safe harbor for forward-looking statements made by Delphi or on Delphi's
behalf. All statements which address operating performance, events or
developments that Delphi expects or anticipates may occur in the future,
including statements relating to volume growth, awarded sales contracts, and
earnings per share growth or statements expressing general optimism about
future operating results, are forward looking statements. These statements
are made on the basis of management's views and assumptions; as a result,
there can be no assurance that management's expectations will necessarily come
to pass. A list of factors which could impact future events and performance
is included in the Delphi Automotive Systems Corporation 1998 Anuual Report on
Form 10-K filed with the Securities and Exchange Commission.