Delphi Automotive Systems Announces Two Investments in Brazil

11 January 2000
Delphi Automotive Systems Announces Two Investments in Brazil
    PIRACICABA, Brazil, Jan. 11 -- Delphi Automotive Systems
recently announced two important investments in Brazil worth over
$25 million, which supports the company's increasing confidence in the
recovery of the South American market.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20000111/DETU020 )
    Delphi invested $25 million in a new technical center and $550,000 in
another facility -- both located in the industrial complex in Piracicaba, Sao
Paulo.
    The technical center is part of Delphi's strategy to strengthen its
presence in South America, a region where Delphi has announced investments of
approximately $100 million in the last year.  The center was inaugurated in
late November 1999, at a ceremony attended by Delphi Chairman, Chief Executive
Officer and President, J.T. Battenberg III; the Sao Paulo State Governor Mario
Covas; and other authorities, customers and employees.
    This facility, which is one of 28 technical centers that Delphi has
worldwide, will enhance the company's capabilities to provide its customers in
South America technical solutions that are consistent with their global
quality and technical requirements, while fully complying with local
legislation and driving conditions in the region.
    "OEMs will be able to benefit from the center's structure in Piracicaba
for localized development, application and validation testing for cost-
effective products that are consistent with the demands of consumers in South
America," said Volker Barth, president of Delphi South America.  "The center
represents a significant belief that Delphi has in South America as a high-
growth potential market."
    The Piracicaba Tech Center has a pollution control devices laboratory,
dynamometers and testing systems to measure and assess consumption, horsepower
and maneuverability -- ranging through the final calibration of the vehicle.
Special equipment will test parts in temperatures varying from -68 degrees F
to +104 degrees F.  With 4,300 square meters, the facility can be expanded in
accordance with the needs of the market.
    Furthermore, the technical center will have test devices for fuel pumps,
injectors, combustion heads, torque, sensors and others.  The state-of-the-art
technical center also has a laboratory to assess the electronic equipment of
the vehicle.
    The $550,000 investment was announced by Donald L. Runkle, president of
Delphi Energy & Engine Management Systems.  The investment will be used to
purchase battery manufacturing equipment to increase 9-inch battery capacity
for the South American market.  This investment will allow Delphi to meet its
sales forecast for the year 2000, which is an increase of more than 40 percent
over 1999 sales.
    "This particular model represents 50 percent of the market, and during
1999 we became the No. 1 supplier in sales and market share in South America,"
said Tarcisio Telles, Piracicaba plant manager.  "This capacity increase will
help us maintain this position and will also let us become more flexible with
production."
    In October 1999, Delphi announced a new division, Delphi Aftermarket, to
bolster its brand support and sales in the aftermarket.  With batteries,
Delphi leads the market with the Delphi Freedom and Delphi Freedom Standard
brands -- both available in Brazil.
    With Brazil being South America's largest car producer and market,
Battenberg commented that the two investments were timed perfectly to coincide
with Delphi's increasing belief in the region.
    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 28
technical centers in 37 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil.  In South America, Delphi has 12 wholly-
owned facilities, 3 joint ventures and 2 technical centers, with over 6,000
thousand employees. Delphi can be found on the Internet at
http://www.delphiauto.com