Delphi to Design, Build Cockpit Module, And Wiring Harnesses For New SUV

Innovative Battery Disconnect Safety Device, Leather-Wrapped Instrument Panel Among Featured Technologies

TROY, Mich., Feb. 7 /PRNewswire/ -- Delphi Corp. continues to grow its relationship with DaimlerChrysler AG with full cockpit module design and build responsibility on the new Mercedes GL-Class full-size sport utility vehicle (SUV). The all-wheel drive vehicle recently made its debut at the 2006 North American International Auto Show in Detroit, Mich. and is scheduled to launch in the U.S. and Europe later this year.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )

Similar to the content Delphi supplies to the automaker's M-Class SUV and the R-Class wagon, the instrument panel and console are manufactured in Delphi's Gadsden, Ala. plant and the entire cockpit assembly is performed at Delphi's Cottondale, Ala. facility. Both operations are in close proximity to Mercedes' Tuscaloosa, Ala. vehicle assembly plant where the GL-Class will be built alongside the M- and R-Class models.

"On the M- and R-Class vehicles, we worked closely with Mercedes all the way from the early stages of design to the final details of the cockpit assembly. Winning the contract to supply the GL-Class in the same fashion is a vote of confidence that validates our performance with this key customer and puts Delphi's mark on the interior of this impressive vehicle," Lon Offenbacher, business line executive, cockpits and interior systems, Delphi Thermal & Interior, said.

The GL-Class instrument panel will come in three different color variations with numerous wood options and an integral sewn passenger airbag seam.

As with its support of the Mercedes-Benz M-Class and R-Class vehicles, Delphi is also providing the full wiring harness content on the new GL through a unique custom-build manufacturing process developed with the automaker.

"This process allows Mercedes-Benz to do away with the need to stock multiple part numbers, because with every harness built specifically to match an ordered vehicle, there are essentially no part numbers," Raul Cuellar, Mexico West manufacturing director for Delphi Packard Electric, said of the process, which marked its North American debut on the recently redesigned M- Class sport-utility vehicle.

Delphi's Packard Electric division builds and ships customer-specific full-body wiring harness packages within its Mexico operations for all three aforementioned Mercedes vehicles in a manner that matches exactly the highly diverse specific requirements of every model that comes through Mercedes' assembly plant in Tuscaloosa, Ala. More than 30,000 configurations are possible in the full-body wiring harnesses that are assembled for Mercedes, based on the numerous features and options consumers are afforded in this trio of luxury vehicles. Each one of these custom-built wiring harnesses is sequenced in pre-determined order to meet its "parent" vehicle on the assembly line as it is built.

Additionally, Delphi will provide its Battery Disconnect Safety Device for a version of the new GL-Class, a safety innovation designed to help mitigate short circuiting in collision events. Activated during a collision, the Battery Disconnect Safety Device helps prevent potential short circuits through the utilization of a small pyrotechnic charge that quickly and safely disconnects protected circuits. This provides circuit protection for the cables connecting the battery to the vehicle's starter, alternator and electrical centers.

The Battery Disconnect Safety Device will make its GL-Class debut on Europe-bound versions carrying the V6-powered diesel engine -- specifically, the GL 320 CDI -- which will become available on the continent later this year.

At Delphi, we help make cars safer, cleaner, more efficient, and fun to drive. For more information about Delphi Corporation (Pink Sheets: DPHIQ), visit http://www.delphi.com

FORWARD-LOOKING STATEMENT

This press release, as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the debtor-in-possession ("DIP") facility; the Company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004 and its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005 and current reports on Form 8-K. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. As described in the Company's public statements in response to the request submitted to the United States Trustee for the appointment of a statutory equity committee, holders of Delphi's common stock and other equity interests (such as options) should assume that they will not receive value as part of a plan of reorganization. In addition, under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005 press release announcing the filing of its chapter 11 reorganization cases, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to prepetition liabilities.

CONTACT: Barb Barkley of Delphi Corporation, +1-716-439-2594,
Email Contact

Web site: http://www.delphi.com/media/


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