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Delphi and Electricore Competitively Selected by U.S. Department of Energy

23 December 1999

Delphi Automotive Systems and Electricore Competitively Selected for Research, Development and Demonstration by U.S. Department of Energy

    FLINT, Mich., Dec. 22 -- Delphi Automotive Systems
, through the Indiana-based consortium, Electricore Inc., signed a
$7.2 million research and development initiative with the U.S. Department of
Energy last week, according to Donald L. Runkle, president of Delphi Energy &
Engine Management Systems.  Under the initiative, this U.S. industry
partnering team was competitively selected to develop advanced motor/generator
systems needed to make advanced hybrid and fuel-cell vehicles, technologies
which improve fuel efficiency.
    "The largest barrier to hybrid powertrains, and the fuel savings they can
bring, is the cost of the added electrical components.  This research and
development project is targeted at the development of cost-effective solutions
to motor/generator design and manufacturing.  We intend to make hybrid
propulsion affordable and to be able to help take the automobile out of the
environmental equation," said Dr. Jean Botti, director of the Customer
Solution Center for Delphi Energy.  "We are pleased to be working with
Electricore on this project," he added.
    "We are proud to have Delphi Automotive Systems as an important part of
the successful private/public partnership within Electricore," said Ellen G.
Engleman, president and CEO of Electricore Inc.  "Together we are 'Powering
the Future' to ensure both energy independence and global competitiveness for
our country while we create jobs in Indiana."
    Electricore Inc., a non-profit public/private partnership dedicated to
research, development, demonstration and deployment of electric and hybrid
electric vehicles based in Indianapolis, Ind., will serve as program manager
for the technical research team who will develop the technology.  Delphi
Automotive Systems will receive $3.6 million over the next three years from
the Department of Energy's Office of Transportation Technologies.  Delphi will
match the federal funding in a 1:1 ratio for a total project value of $7.2
million.  Selected following a solicitation issued in March, the
Delphi/Electricore team will now begin negotiating details of the agreement.
    Delphi's Energenix Center in Kokomo, Ind., will perform the research and
development targeted at developing cost-effective solutions to motor/generator
design and manufacturing to enable hybrid powertrains.
    According to Energy Secretary Bill Richardson, "The Energy Department
supports the automotive industry's efforts to improve vehicle energy
efficiency.  The partnership between the federal government and the private
sector is critical to reducing America's reliance on imported oil, maintaining
economic viability of our industries and improving the air quality for all our
citizens."
    Indiana's Governor Frank O'Bannon has actively supported federal research
programs that help to fund Electricore projects and was pleased to learn of
the consortium's successful bid.  "I am delighted that this important research
will be done in Indiana," O'Bannon said, adding, "Electricore's continuing
research and development of alternative fuel transportation is an essential
part of Indiana's growing high-tech industry sector."
    Electricore Inc., based in Indianapolis, Ind., with West Coast operations
located in Santa Barbara, Calif., is currently program manager for almost $50
million in advanced transportation technology development in partnership with
the U.S. Departments of Defense, Transportation, Energy, the U.S. Air Force
and others.  A non-profit public/private partnership with over 40 participants
from 17 states, Electricore participants include small and large businesses,
and universities.
    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