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Delphi to Support Renault Vehicles with Leading-Edge Compressor Technology

6 March 2000

Delphi to Support Renault Vehicles with Leading-Edge Compressor Technology

    DETROIT, March 6 With the trend toward automotive air
conditioning in Europe dramatically on the rise, Delphi Automotive Systems
continues to forge partnerships with major OEMs to provide
leading-edge climate control solutions.
    Delphi announced today that it has strengthened its relationship with
Renault, earning a contract to provide air-conditioning compressors for two
future global vehicles.  The announcement was made at the 2000 SAE
International Congress & Exposition in Detroit.
    The contract, valued at approximately $90 million (USD) annually at full
production, boosts Delphi's burgeoning compressor manufacturing presence in
Europe and strengthens the company's relationship with a key global customer,
said F. Timothy Richards, Delphi Harrison Thermal Systems' director of
European operations.
    "Renault's strong leadership position in Europe, quickly expanding
worldwide reach, and penchant for demanding excellence make it a customer with
which we are eager to grow," Richards said of the France-based automaker, the
top-selling marque in Western Europe in 1999 (combined sales of passenger cars
and light commercial trucks).  "We are excited about playing a major role in
helping Renault continue to bring high-quality, high-in-demand vehicles to its
customers."
    Delphi will manufacture its Compact Variable Compressor (CVCs) to support
the two Renault vehicles, which will be assembled at several European plants
as well as in more than 15 countries worldwide.  Part of Delphi's full range
of compressor offerings, the CVC represents the next generation of variable
displacement piston technology.
    Forecasts call for 130,000 CVCs to be manufactured during the 2002 start
of production.  Output will climb significantly in the following years, with
full production realized in 2004, based on customer volume forecasts.
    The CVCs will be assembled at Delphi's new majority-owned joint venture in
Balassagyarmat, Hungary.  Announced at the Frankfurt Motor Show in September
1999, the venture brings together Delphi's Harrison Thermal division and
Calsonic Corporation.
    "Automakers like Renault are increasingly looking to make the driving
experience more comfortable and satisfying, and as a result are equipping a
rapidly growing percentage of vehicles with standard air conditioning,"
Richards said.  "We will be supplying Renault with a product that is poised to
become the best solution for Europe's booming air-conditioning market."
    In addition to current CVC-producing ventures in Japan and Europe, Delphi
is also bringing production of the compressor to North and South America.  It
is establishing a facility in Moraine, Ohio, and recently announced it will
open a CVC operation in Jaguariuna, Brazil, for 2001 model-year production.
    Featuring a "swash" plate configuration, the CVC produces less noise and
vibration than contemporary designs, while delivering high-speed operation and
best-in-class in relation to output-per-mass ratio and output-per-volume
ratio.  With its wide range of displacement offerings and a high degree of
design flexibility, the CVC is adaptable to small, mid-sized and large
vehicles.  (Generally regarded as the heart of a vehicle's air conditioning
system, the compressor pumps refrigerant through the A/C loop, at the same
time pressurizing it and increasing its temperature.)
    "With a growing number of facilities producing the CVC and an equally
expanding list of customers, it's easy to see why we're excited about this
cutting-edge compressor design," Richards said.
    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in transportation and mobile electronics components and systems
technology.  Delphi's three business sectors -- Dynamics & Propulsion; Safety,
Thermal & Electrical Architecture; and Electronics & Mobile Communication --
provide comprehensive product solutions to complex customer needs.  Delphi has
approximately 213,500 employees, and operates 175 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 27
technical centers in 38 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil.  Delphi can be found on the Internet at
http://www.delphiauto.com