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Delphi Announces $575M Voluntary Cash Contribution To Hourly Pension Fund

6 January 2000

Delphi Automotive Systems Announces $575 Million Voluntary Cash Contribution To Hourly Pension Fund

                     -- Delphi Automotive Systems Corporation
today announced a $575 million voluntary contribution to its U.S.
hourly pension fund.  The contribution -- which will be made Thursday -- comes
on the heels of 1999 contributions of $325 million in December, $300 million
in September, and $600 million in June, bringing to $1.8 billion the total
amount of contributions to the fund since Delphi's separation from General
Motors last May.
    "None of the pension fund contributions made in the last 12 months have
been required under ERISA (Employee Retirement Income Security Act)," said
Delphi Chief Financial Officer Alan S. Dawes.  "All have been strictly
voluntary and are made possible by the extremely strong cash flow generated by
Delphi operations in 1999.  For our employees and their families, we hope
these voluntary contributions send a signal that Delphi is a strong business
with the ability to ensure a viable pension for current and future retirees.
    "From a shareholder perspective, we are intent on increasing shareholder
value by growing our earnings and cash flows.  We plan to achieve this
objective through an expansion of our margins (which we hope to take from pro
forma 3 percent in 1998 to 5 percent by 2002), and, longer term growth in our
revenue base, particularly with customers other than General Motors," said
Dawes.
    "Our $1.8 billion in voluntary pension fund contributions directly
supports future net income growth and expanded margins," said Dawes.  "In
addition, we are investing between $1.2 and $1.3 billion back into the
business in the form of capital investments, which also should drive margin
expansion.  Finally, we expect to finalize over the next couple of weeks our
purchase of Lucas Diesel Systems for $871 million in cash.  Combined, pension
fund contributions, capital investment, and accretive acquisitions (of which
we make about one every five weeks) are all intended to support margin
expansion, which we believe will increase Delphi's value," he said.
    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in automotive components 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 36
countries.  Regional headquarters are located in Paris, Tokyo and Sao Paulo,
Brasil.  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 us or on our behalf.  All
statements which address operating performance, events, or developments that
we expect or anticipate 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 and cause actual
results to vary materially from those anticipated in the forward-looking
statements is included in the Delphi Automotive Systems Corporation 1998
Annual Report on Form 10-K filed with the Securities and Exchange Commission.