Marginal Units To Get Special Attention From Delphi.

Delphi Corp. has placed 10 additional manufacturing operations in the company's recently established Automotive Holdings Group (AHG) to accelerate efforts to bring these sites back to profitability or resolve issues at these operations through other actions. AHG was established to focus increased Delphi management attention in one operating sector on resolving under-performing product lines or sites, while enabling management of other operating sectors to focus on growth and expansion.

The AHG was announced in October 2002 and is led by James A. Bertrand, president, who reports to Alan S. Dawes, Delphi vice chairman and chief financial officer.

"The facilities within the Automotive Holdings Group will receive dedicated support and assistance from a talented and experienced staff to work with employees and unions to fix the business. This will be accomplished by raising operating performance to acceptable levels either with current products, or possibly by transitioning to different products or business models," said Dawes.

"If the business or site can't be fixed, AHG will need to implement plans to close, sell or otherwise rationalize the site or business. In certain circumstances, we may use a combination of these actions."

The additional operations named to Delphi's Automotive Holdings Group include: Athens, Ala. site; Tuscaloosa, Ala.; Anaheim, Calif.; Fitzgerald, Ga.; Anderson, Ind. site; Olathe, Kan.; Flint, Mich. (East site); New Brunswick, N.J.; Moraine, Ohio sites and Dayton, Ohio (Needmore Rd./Wisconsin Blvd.).

Previously, Delphi announced its U.S.-based generator and instrumentation product lines and their respective facilities in Flint, Mich. and Anderson, Ind. would be the first to be included in the AHG. "Our commitment to customers that receive products from these sites is unwavering," said Dawes.

"This internal realignment will not impact the quality, responsiveness or delivery performance of these facilities. Placement of these sites in the Automotive Holdings Group signals an intensified focus on reducing costs and improving financial performance.

During this process we will continue to support the customers associated with the manufacturing site. If the measures implemented while within the AHG do not resolve the challenges of the site, then other coordinated actions may be required." The AHG sites listed above employ approximately 11,800 employees, or over six percent of Delphi's worldwide workforce, and manufacture a variety of products in support of automotive customers.