DELPHI EXPANDS CHINA TECHNICAL CENTER IN SHANGHAI

SHANGHAI – Delphi Corporation announced today it will soon begin phase II construction on its China Technical Center located in Shanghai. Scheduled for completion by the end of 2007, the project is an effort by Delphi to increase its local research and development capabilities and ensure the safety and quality of its all products in the Chinese market.  Piling is scheduled to begin in April 2007.

The most significant portion of the project will be the construction of an adjoining two-story heavy- and medium-laboratory building in the Delphi's existing China Technical Center compound. The new facility, occupying an area of 12,600 square meters, will house a variety of new laboratories dedicated to validation and research in several Delphi business areas: Powertrain, Electronics & Safety, and Delphi Product and Solution Services (DPSS)..

Among the various laboratories housed in the building, there will be one engine dynamometer lab, vehicle chassis dynamometer labs intended for vehicle and motorcycle products, an engineering validation lab for electronic products, vibration lab, environment lab, and a fuel classified lab for powertrain components.  In addition, there will also be an diesel training lab to provide technical trainings to China diesel aftermarket service network. 

Since its opening in 2006, Delphi's China Technical Center has made several technological breakthroughs, some currently under review at the US patent office, and new business wins in the region including supplying a complete Occupant Protection Systems (OPS) and integrated navigation system for several of Chery's platforms starting in 2009.  CTC will be the design center for the navigation systems and application center for the safety systems to be provided to Chery.  The company considers the China Technical Center an integral component of its long-term plan to expand its footprint and enhance its capability to serve local partners in the Asia Pacific region, especially those in China.

During 2006, Delphi recorded year-over-year revenue growth of 47% in the Asia Pacific region, representing sales of US$1.92 billion. The company's new bookings in the region during the same period amounted to US$5.4 billion, exceeding Delphi's growth target by 59%.

Delphi is a leading auto component supplier in the China market and supplies to almost all major OEMs in the market.  In China, Delphi's fastest growing market in the Asia Pacific region, the company in 2006 grew more than 20% above the market average.

Committed to long-term development in the China market, Delphi has been actively increasing its competitive presence throughout the country on a number of fronts.  In 2006, Delphi Packard Electrical Systems Co., Ltd opened a branch plant in Yantai, Shandong Province. Delphi increased its investment in Shanghai Delphi Automotive Air Conditioning Systems Co., Ltd. (SDAAC). The company also established a joint venture with Beijing United Automobile Motorcycle Manufacturing Co. (BAM) for the manufacture of seat belts.  Delphi also opened a new plant at Suzhou to manufacture steering products.  In addition, Delphi established the Delphi Trading (Shanghai) Co., Ltd., which already has a nationwide dealer network in most major Chinese cities.

Dr. Choon T. Chon, Delphi Asia Pacific president and president of Delphi China, said, "We are pleased to see our efforts being recognized by customers through increased sales. Delphi intends to build on this success by continuing to develop our innovation competence and by leveraging our very solid and diverse portfolio of businesses."

Delphi has operated in China since 1993. Today, Delphi China operates 17 legal entities, comprised of a holding company, a global R&D center, a technical service company, a trading company and 13 manufacturing companies. Delphi China's total investment has reached more than US$500 million.