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Restructuring Actions Pace Delphi's Second Quarter

12 July 2000

Restructuring Actions Pace Delphi's Second Quarter

    TROY, Mich. - Delphi Automotive Systems executed several infrastructure 
reduction actions in the second quarter consistent with long-term business plans.
These actions are expected to save more than $25 million annually.

    "We have a strong track record of managing our business to eliminate
redundancies or resolve under-performing businesses.  Our business processes
are built on finding and eliminating waste, seeking new alternatives that
generate better return on investment and regularly refining our product and
plant portfolio," said Alan Dawes, Chief Financial Officer.  "It's that track
record and value-driven philosophy that makes Delphi a stable, successful
company."

    The following second quarter actions are under way and will be completed
by year-end:

    --  Restructuring Delphi South America staffs to increase customer
responsiveness and reduce infrastructure;
    --  Planned workforce reductions at several European manufacturing
locations and;
    --  Outsourcing non-core salaried support activities at its headquarters
in Troy, Mich.

    In South America, Delphi is restructuring its operations by consolidating
divisional and regional staffs resulting in a streamlined organization and
fewer U.S.-based personnel working in South America.

    "We are taking these steps in response to the generally soft market
conditions in South America and to improve our structure to enhance customer
support," said Volker Barth, Delphi South America president.  "We have
established a strong presence in the region and have made many of our business
processes common, so we are now poised to take this next step to improve our
performance."

    Delphi's South American presence is 7,400 employees at 12 wholly-owned
facilities, three joint ventures and two technical center facilities, serving
Volkswagen, General Motors, Fiat, Ford and other leading vehicle
manufacturers.

    Planned workforce reductions through separation programs are under way in
France, the United Kingdom and Poland, impacting approximately 900 employees.
These programs are in response to manufacturing initiatives and changes in
market conditions in the respective locations.

    Several of the company's general administrative headquarters staffs are
reorganizing to eliminate positions or outsource non-core work activities.
For example: recently, Delphi announced an agreement with a firm for
management of the company's worldwide real estate transactions.  These actions
are in addition to the consolidation savings already occurring as Delphi
integrates recently acquired businesses including Delphi Diesel Systems and
Delphi Lockheed Distribution Services.

    "We continue to refine our product line-up and improve our staffing,
facility and operation structure to meet market needs, while consistently
driving out costs," said Dawes.  "These most recent actions are further points
of progress in continuing to meet our earnings commitments."

    About Delphi

    Multi-national Delphi Automotive Systems, with headquarters in Troy,
Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, 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 213,000 employees and operates 176 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 30
technical centers in 38 countries.  

    Forward Looking Statements

    The Private Securities Litigation Reform Act of 1995 (the "Act") provides
a safe harbor for forward-looking statements made by Delphi or on its behalf.
All statements which address operating performance, events, or developments
that Delphi expects or anticipates 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 is included
in the Delphi Automotive Systems Corporation 1999 Annual Report on Form 10-K
filed with the Securities and Exchange Commission.