Delphi Strengthens Market Position in Korea With Nearly $7M in Contracts
16 December 1999
Delphi Strengthens Market Position in Korea With Nearly $7 Million in New Steering Contracts
Delphi continues Korean growth in safety, thermal and electrical businesses
SEOUL, Korea, Dec. 16 -- Delphi Automotive Systems
announced today nearly $7 million in new contracts from Daewoo
Motor Corporation and Kia Motor Corporation for advanced steering
technologies.
Delphi, in conjunction with its joint venture Daewoo Automotive
Components, has secured $6.23 million in new business contracts with Daewoo
Motor. Delphi also earned a single $0.45 million contract with Kia Motor.
The new business represents continued growth for Delphi in Korea, said
J.T. Battenberg III, Delphi chairman, chief executive officer and president.
"We are working very hard to become trusted partners with Korean
automakers, and we have made solid progress in our safety, thermal and
electrical businesses," he said. "These new contracts will allow us to prove
that our strategic partnerships, local presence and advanced technologies will
make us a valued partner for steering systems, as well."
Delphi was chosen by Daewoo Motor to be the exclusive steering systems and
driveline supplier for Daewoo's 2000 model Rezzo. Delphi also will supply its
MAGNASTEER(TM) Magnetic Assist Steering System for Daewoo's 2000 model Magnus.
The Rezzo and Magnus models arrive in the Korean marketplace this month.
"Daewoo's exclusive contract with us demonstrates their confidence in
Delphi's steering expertise and ability to deliver a high-quality system,"
said Paul J. Tosch, vice president, Delphi Automotive Systems. "We are
pleased that our partnership with Daewoo has developed that type of trust over
the years and we look forward to continuing the partnership into the new
millennium."
2000 Daewoo Rezzo -- Delphi support
For the Daewoo 2000 Rezzo, Delphi will supply the steering system, which
includes the power rack and pinion gear, power steering pump, rake steering
column and intermediate shaft. Delphi also will provide halfshafts, which
account for the largest amount of annual steering sales by product line to
Daewoo overall.
Delphi also has significant safety, thermal and electrical content on the
vehicle, including frontal airbags, door latches, air conditioning module,
condenser, compressor, radiator, wiring harness, secondary ignition cable
assembly, switches, and instrument panel printed circuit board bussed
electrical center.
2000 Daewoo Magnus -- Delphi support
Daewoo's 2000 Magnus model will feature Delphi's MAGNASTEER(TM) Magnetic
Assist Steering System. MAGNASTEER is a premier, speed-sensitive, variable-
effort power steering system. Its unique design employs a combination of
hydraulics, electronics and magnetics to smooth power steering from one effort
level to another with no compromise in steering between parking and highway
driving.
The MAGNASTEER System offers vehicle engineers greater control of the
steering system's personality by providing a significantly wider variable
effort steering range and one of the widest power assist steering ranges
available in the industry, Tosch said. Laptop tuning capabilities reduce
time-consuming mechanical changes, while minimized friction and symmetrical
loading from few moving parts make the MAGNASTEER System exceptionally
reliable, Tosch said.
Delphi's safety, thermal and electrical content on the 2000 Magnus
includes the door latch, air conditioning module, condenser, compressor,
radiator, air filter, wiring harness, instrument panel printed circuit board
bussed electrical center, switches, and underhood routed wire bussed
electrical center.
Kia 1999 Pride -- Delphi Support
Delphi's contract with Kia is to supply halfshafts for Kia's 1999 model
Pride replacement, currently available in the marketplace.
Earlier this year Delphi announced a contract with Kia worth $5.7 million
annually to supply bussed electrical centers beginning with the 2000 Sephia
IV.
Delphi provides advanced occupant protection safety systems to Korean
market
Delphi increased its level of safety support to Korean automakers during
1999, earning approximately $15 million of annual business starting with the
2001 model year.
Also this year, Delphi supported the expansion of occupant protection
safety systems in the Korean auto market through the transfer and localization
of side-airbag product technology and delivery.
"Delphi is an excellent choice in occupant protection systems for Korean
OEMs because of Delphi's customer base, global presence and technical
expertise," said Choon Chon, president, Korea, Delphi Automotive Systems. "We
want to provide all the resources of a large company with all the
responsiveness of a smaller company."
Delphi employs 115 permanent employees in Korea and partners with six
joint venture companies, including Daewoo Automotive Components Ltd., Shinsung
Packard Co. Ltd., Daesung Electric, Korea Door Systems Co. Ltd., Delkor
Corporation and Sungwoo Corp.
Delphi continues to pursue opportunities for joint ventures and other
operations. Delphi's customer base includes all five major Korean OEMs,
including Daewoo, Hyundai, Kia, Ssangyong and Samsung.
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, Brazil. Delphi can be found on the Internet at
http://www.delphiauto.com