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Delphi's Leading-Edge Compact Variable Compressor Chosen for Volkswagen Program in South America

17 August 2000

Delphi's Leading-Edge Compact Variable Compressor Chosen for Volkswagen Program in South America

    SAO PAULO, Brazil - Delphi Automotive Systems continues to strengthen its 
position in the South American automotive air conditioning market, earning a 
contract to provide world-class compressor technology for Volkswagen.

    Volkswagen do Brasil has selected Delphi to provide its Compact Variable
Compressor (CVC compressor) to meet the air conditioning requirements of the
VW Gol.  Delphi's manufacture of CVC compressors for the Gol will be linked to
engine size and configuration.

    The contract reaffirms Delphi's commitment to providing state-of-the-art
passenger comfort solutions for customers who share the same drive to deliver
automotive excellence in the promising South American marketplace.

    "We're excited about becoming a part of Volkswagen's supplier family, and
supporting a vehicle that's been a leader in its segment for more than a
decade," said Sandra Y. McCulloch, director of South American operations for
Delphi Harrison Thermal Systems.  She noted that this is Delphi Thermal's
first business in South America for VW.

    "We have a high level of confidence in our ability to succeed in South
America.  Partnering with Volkswagen, the market leader here and a strong
company with very high standards for its suppliers, is a significant step
towards that success," McCulloch continued.  "We feel our relationship with
Volkswagen will continue to grow as we demonstrate our ability to exceed their
expectations."

    Delphi is scheduled to begin supplying VW do Brasil's plant in Sao
Bernardo do Campo with CVC compressors in mid 2001.  The automaker's plant in
General Pacheco, Argentina will also receive CVC compressors to support
production of the Gol.  The contract will be worth more than USD $8 million
annually when full production is reached the following year.

    The compressor used to support the Gol will be produced at Delphi's new
manufacturing facility in Jaguariuna, Brazil.  The 10,000-square-meter CVC
plant is the company's first compressor facility in South America.  It is also
one of five Delphi plants (wholly owned or joint venture) committed to
producing this cutting-edge compressor design, with plants in France, Japan,
Hungary and the U.S. also part of the company's CVC compressor manufacturing
footprint.

    Featuring a "swash" plate configuration, the Compact Variable Compressor
produces less noise and vibration than contemporary designs, and features
best-in-class output performance.  With its wide range of displacement
offerings and a high degree of design flexibility, the CVC compressor is
adaptable to small, mid-sized and large vehicles.  Its highly efficient mode
of operation allows automakers to realize savings in energy consumption, and
is a key part of Delphi's initiatives targeting energy efficiency and
environmental stewardship.

    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.