auto parts manufacturers,auto parts suppliers

A Major North American Automaker Designated Delphi Its Sole Data Connectivity Supplier for Models with Production Start Dates Beginning in 2010 and Beyond

TROY, Mich.—Delphi Corporation (PINKSHEETS: DPHIQ) won 100 percent of a major North American automaker’s new data connectivity systems business and will begin supplying componentry for models built on several platforms as soon as model year 2010.

“In this particular business win, Delphi has been designated the sole supplier for USB cables, ports and headers for this automaker,” reports John Yurtin, product line manager for Delphi Connection Systems, Delphi Packard Electrical/Electronic Architecture.

As sole supplier, Delphi will provide all of the USB cable assemblies, integrated consumer ports and headers for vehicles built on a variety of platforms and slated to go into production between 2010 and 2013.

As part of the agreement, Delphi is prohibited from identifying the automaker before the models on which Delphi’s data connectivity systems will be included are in production.

Data connectivity systems make it possible for passengers to connect consumer devices such as iPods® and MP3 players to consumer interfaces in the vehicle and listen to the music stored on them through the vehicle’s audio system. They can also provide a means to connect computers, charge cell phones, view images stored on photo cards, play video games and watch movies.

“Owning 100 percent of the business to supply these data connectivity systems is not typical,” Yurtin says, but demonstrates the desirability of Delphi’s products over those of other suppliers. Delphi’s leadership in the industry and ability to provide complete systems, including all of the componentry from the device to the end-user interface—systems that meet the unique specifications of every vehicle—increase that desirability.

“The innovative ideas and technologies Delphi offers help provide its customers with the ability to provide features that are extremely appealing and that excite consumers,” Yurtin observes. “These are the things that give our customers a marketing advantage over their competitors.”

Delphi’s ability to maintain a close working relationship with the original equipment manufacturer as well as the automaker’s other suppliers was crucial to securing the business, Yurtin continues. “This is a hot new item and they want to get it on the market as soon as possible. Meeting such a tight schedule requires teamwork—that’s the key to successful implementation.”

Although this new business is not Delphi’s only experience providing data connectivity systems to a high-volume customer, Yurtin says winning this business further secures Delphi’s position in the industry. And, he points out, being an established supplier for complete data connectivity systems for high-volume production positions Delphi to win more business as the company prepares its next generation of products. The next generation of Delphi data connectivity products will enable automakers to expand the types and varieties of protocols included in their production vehicles.

For more information on Delphi Data Connectivity Systems, visit www.Delphi.com/dataconn.

Delphi Packard Electrical/Electronic Architecture delivers power and signal distribution networks for today’s increasingly complex vehicles. Delphi engineers act as master architects by using proprietary design tools and software to create a virtual model of a vehicle’s E/E architecture—down to the last connector, electrical center, electronic module and wiring harness. In doing so, they evaluate the impact of various trade-offs to deliver a fully optimized E/E architecture system backed by Delphi technical centers and manufacturing facilities in 31 countries around the globe.

For more information about Delphi Corp. (PINKSHEETS: DPHIQ), visit www.delphi.com.

FORWARD-LOOKING STATEMENTS

This 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 or any other subsequently confirmed plan of reorganization; 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 “Plan of Reorganization and Transformation Plan” of the Annual Report on Form 10-K for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission) 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 Annual Report on Form 10-K for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission, including the risk factors in Part I. Item 1A. Risk Factors. 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.

The Board of Directors has decided to propose the appointment of Mr. Behdad Alizadeh to stand for election as a director of Valeo at the shareholders meeting to be held on June 20, 2008, pursuant to the terms of the agreement between the Pardus investment fund and Valeo.

The principal terms of the agreement, which is annexed hereto, are summarized below.

Valeo nominates Mr. Behdad Alizadeh, a Pardus partner, to stand for election as a member of the Board of Directors.

Pardus has undertaken to address Valeo’s concerns regarding potential conflicts of interests stemming from Pardus’s shareholding in Visteon.

In particular, Pardus has agreed not to seek representation in any management bodies of or management positions in any company with activities similar to or in competition with Valeo, and in particular in Visteon and Delphi.

In addition, Pardus has agreed that its representative on the Board of Directors will not vote or participate in any deliberations of the company’s Board of Directors during which relations between Valeo and Visteon are discussed.

Moreover, Pardus will not acquire more than 10% of the capital or voting rights of any Valeo competitor (without prejudice to its shareholding in Visteon).

Pardus has agreed that it will not increase its shareholding in the company beyond 20% of the capital and voting rights.

Pardus may, however, acquire double voting rights (in accordance with statutory conditions), but has agreed to not exercise voting rights representing more than 20% during shareholders’ meetings.

If Pardus sells its shares, under certain conditions, Valeo will have a right of first offer and a pre-emption right.

The provisions in the agreement will remain in force until the end of the annual shareholders meeting of Valeo called to approve the accounts for the year ended December 31, 2011.

Nonetheless, Pardus may terminate the agreement at any time, subject to a four-month notice period.

In such case, Pardus’ representative on the Board of Directors will resign from the Board of Directors.

In the event of a tender offer by a third party for the shares of Valeo that is approved by the Autorité des marchés financiers, if the Pardus representative resigns from the Board of Directors, Pardus may immediately terminate the agreement.

The Board of Directors approved the execution of this agreement at its meeting held on May 21, 2008. The Board is pleased to nominate Mr. Behdad Alizadeh, a Pardus partner, to stand for election as a Director of Valeo at its next shareholders meeting, in order to contribute to Valeo’s long-term development.

Stuttgart, May 27, 2008—Robert Bosch GmbH and MAHLE GmbH have founded a 50/50 joint venture for the development, production, and sale of exhaust gas turbochargers. The European anti-trust authorities have approved the founding of the joint venture. “Bosch Mahle Turbo Systems GmbH & Co. KG” will commence business on June 2, 2008.

The company’s head office in Stuttgart will house the development, administration, and sales activities. Initially, around 100 employees will work here, with half drawn from each of the parent companies. Series production of exhaust gas turbochargers will begin in 2011 at existing locations in St. Michael ob Bleiburg, Austria, and Blaichach/Immenstadt, Germany. Up to 500 employees will manufacture major parts and components of a high quality and assemble exhaust gas turbochargers. These will be used in passenger cars and light commercial vehicles, in both gasoline and diesel engines.

Dr. Martin Knopf and Dr. Andreas Prang have been appointed managing directors of the new company. “We are convinced that Bosch Mahle Turbo Systems will position itself as a preferred partner of international automobile manufacturers for the development and production of exhaust gas turbochargers. Concrete interest has already been shown during numerous discussions with customers,” says Prang, responsible for production, purchasing, and quality management.
“Now that exhaust gas turbochargers have been successfully used primarily in diesel engines, they will be used increasingly in gasoline engines in the future, in combination with direct gasoline injection for downsizing concepts. This will allow smaller engines to achieve better efficiency with comparable power output,” explains Knopf, who is responsible for development, sales, and finances. Bosch Mahle Turbo Systems regards the exhaust gas turbocharger as one of the key technologies for the sustainable reduction of fuel consumption and CO2 emissions.

Bosch and MAHLE are firmly established in the field of automotive powertrains. The two companies complement each other ideally as regards their systems and component know-how as partners in the development and production of new exhaust gas turbochargers.

· 2007: after adjusting for currency effects, sales grow by eight percent to 46.3 billion euros; pre-tax return on sales reaches 8.2 percent
· 2008: generally positive development of business expected despite less favorable economic environment

· Innovations: focus on technologies that protect the environment and conserve resources

· Asia: nearly 1.9 billion euros to be invested between 2008 and 2010 in further expansion of activities

· Germany: expansion of Abstatt engineering center near Heilbronn will create up to 900 new jobs

· Scarcity of specialists: “Education is the best growth investment”

Stuttgart – The Bosch Group is energetically continuing its course of international growth. The company’s sales revenue increased by six percent in fiscal 2007 to 46.3 billion euros. After adjusting for currency effects, growth was eight percent. Profit before tax came to 3.8 billion euros, compared with 3.1 billion euros in the previous year. The pre-tax return on sales was thus 8.2 percent, following 7.1 percent in 2006. “For the Bosch Group, 2007 was a successful year. We achieved our sales and earnings targets. The fundamental strategy of the Bosch Group is the right one. Worldwide, we have a broad spectrum of growth,” said Franz Fehrenbach, chairman of the Bosch board of management, at the annual press conference in Stuttgart. In 2007, Bosch invested roughly 6.2 billion euros in the future of the company. Of this amount, 3.6 billion euros went into research and development, and 2.6 billion euros into capital expenditure. Worldwide, the number of Bosch associates rose by roughly 10,000 to some 271,300. In 2007 alone, the company spent more than 225 million euros on training for its associates.

For fiscal 2008, the Bosch CEO was cautiously optimistic: “Despite all the worries about the economy, we have good reason to be confident. The operating environment may have weakened, but we do not foresee a global downturn. We expect the Bosch Group to continue to perform well on the whole.” Fehrenbach expects Bosch Group sales to again increase by some five percent in 2008, despite the strong euro. In addition, the company aims to once more achieve its target for pre-tax return on sales of seven to eight percent. In the first four months of 2008, Bosch Group internal sales increased by a nominal four percent, and seven percent after adjusting for currency effects.

Encouraging developments in all three business sectors
“Our positive result in 2007 has enabled us to further strengthen our financial basis, providing us with a very sound financial platform for funding future growth,” said CFO Gerhard Kümmel in his review of the Bosch financial statements. The equity ratio rose by a further three percentage points to 51 percent. All Bosch business sectors contributed to this good result. The Automotive Technology business sector increased its sales by a nominal 4.5 percent to 28.4 billion euros. After adjusting for currency effects, growth came to 6.7 percent. Despite substantial up-front investments in research and development, its return on sales from operations rose from four percent to 5.8 percent. Growth was driven primarily by demand for advanced diesel and gasoline injection systems, as well as a rise in the share of vehicles equipped with the Electronic Stability Program ESP®. Above all, the development of result showed the effect of improved capacity utilization, and of the many measures to improve processes, reduce costs, and increase productivity at all locations worldwide.

Sales of the Consumer Goods and Building Technology business sector increased by 6.5 percent to 11.7 billion euros. After adjusting for currency effects, this was a plus of eight percent. The return on sales from operations amounted to 7.5 percent, after 8.2 percent in the previous year. Business in the areas of power tools, household appliances, and security systems developed positively in terms of both sales and result. In its thermotechnology operations, by contrast, Bosch was able to hold its market position, but felt the effects of marked purchasing restraint in Germany, where consumers are unsure what to expect when it comes to future emission regulations and government grants. In the first months of 2008, by contrast, the thermotechnology business has picked up again.

The Industrial Technology business sector recorded a sales increase of 9.4 percent in 2007, to six billion euros. After adjusting for currency effects, it grew by 12 percent. Its return on sales from operations rose from 7.8 percent to 8.4 percent. In automation technology, Bosch benefited from the healthy global business climate for capital goods and from its broad product portfolio. And following restructuring measures, packaging technology developed better than in previous years.

Asia as a motor for growth – activities also being expanded in Germany
In 2007, moreover, it was possible to strengthen all three business sectors by means of a series of acquisitions. “Last year, we spent a total of around 800 million euros on acquisitions and on increasing our holdings in existing affiliated companies,” Fehrenbach said. For 2008 and successive years, he said, there were sufficient funds available for the company to be able to spend considerably greater amounts. “We will continue to take full advantage of our opportunities for growth in automotive technology, but at the same time growing by an above-average rate in consumer goods, building technology, and industrial technology. To achieve this, we shall continue to make acquisitions wherever they fit in with our core competencies and our corporate culture,” Fehrenbach said. Bosch is currently tendering an bid to acquire all shares in Bosch Corporation, its Japanese subsidiary. The bid is valid until June 19, 2008.

In regional terms, Bosch was once again able to post double-digit sales growth in Asia Pacific. After adjusting for currency effects, sales in North America rose by 6.5 percent, despite the weakness of the automotive industry. In euro terms, North American sales dropped by 1.6 percent. In Europe, Bosch generated six percent sales growth. “By 2015, we aim to generate over half of our sales outside Europe. However, Europe itself will remain a key market for our innovations. And despite all the current problems, we continue to trust in the long-term strength of the American economy. Nonetheless, our strongest growth region will be Asia,” Fehrenbach said. Bosch intends to triple its sales in the region by 2015, and to invest nearly 1.9 billion euros there by 2010. This is half a billion euros more than in the last three years. The company’s presence in Germany is also to be expanded further: “Between now and 2010, we will spend more than 60 million euros on expanding our engineering center in Abstatt, near Heilbronn. This may create up to 900 new jobs, especially in engineering and application,” Fehrenbach announced at the annual press conference.

Fehrenbach: climate protection goals can only be achieved with specialists
Across all its business sectors, Bosch intends to further expand its research and development work on technologies that protect the environment and conserve resources. In the automotive area, for example, Bosch has set up a second project unit in addition to its hybrid unit. This project unit will develop high-performance lithium-ion batteries, and focus the company’s efforts on further developing the core competence it needs for the increased use of electrical motors in drive systems. But the company’s activities go far beyond the car: “In the Bosch Group, more than 40 percent of our research and development budget now goes into products that conserve resources and protect the environment. In 2007 alone, this was a good 1.5 billion euros,” Fehrenbach said. Going beyond energy efficiency, greater effort is to be invested in harnessing and utilizing renewable energies. Sales generated with these systems will grow at a double-digit rate to more than 750 million euros in 2008 – and are expected to exceed 1.2 billion euros in 2010.

“But in the 21st century we shall only be able to meet our ambitious targets for carbon dioxide reduction if we have enough specialists. Not enough thought is devoted to this subject, let alone action,” Fehrenbach said. “Education has hardly ever been as important as it is now, in the age of globalization. Competition for the best people is increasing every single day.” This was, he said, why Bosch was involved in diverse ways in the area of education. In addition, the company took on 5,500 university graduates worldwide in 2007. Fehrenbach is convinced: “In the long run, education is the best growth investment.”