Delphi purchased the remaining 10 percent venture shares from Calsonic Kansei Europe PLC. in Delphi Calsonic Hungary Ltd., and sold its remaining 49 percent shares in its Japan-based venture, Calsonic Harrison Co., Ltd. to Calsonic Kansei. The dissolution of the two joint ventures will help the company to become more focused and cost competitive on a global basis.
"We have enjoyed a long-running relationship with Calsonic Kansei, which has allowed us to provide customers with the very best advanced solutions for their compressor needs," said Ron Pirtle, Delphi Thermal Systems President. "Delphi has recently expanded its compressor footprint in Mexico and has a planned plant opening in China this year. This expansion, coupled with today's announcement of our Hungary plant, well positions Delphi to serve the needs of the local markets and meet increasing customer demand."
The Hungary-based venture is located in Balassagyarmat and manufactures compact variable compressors (CVC). Customers, suppliers, employees and other parties associated with the plant will not be impacted by the share purchase.
Delphi formed its first joint venture with Calsonic Kansei in Japan in 1986 and created its joint venture in Hungary in 1999. For more information on Delphi, please visit www.delphi.com.
This press release, as well as other statements made by Delphi may contain forward-looking statements 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. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. 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 financing facility and to obtain an extension of term or other amendments as necessary to maintain access to such facility; the Company's ability to obtain Court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the Company to consummate its Amended Plan which was confirmed by the Court on January 25, 2008; the Company's ability to satisfy the terms and conditions of the EPCA; 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 (including the transformation plan described in Item 1. Business "Potential Divestitures, Consolidations and Wind-Downs") and to do so in a timely manner; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, including the risk factors in Part I. Item 1A. Risk Factors, contained therein, filed with the SEC. 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 prepetition liabilities, common stock and/or other equity securities.
Contact: Claudia Piccinin (248) 732-1598