Delphi and Belgium-based Bosal Group have announced a new strategic alliance to offer complete exhaust systems for the global original equipment (OE) market.

The non-equity based alliance, to be known as Bosal Delphi Complete Exhaust Systems, will bring together the specific expertise, facilities and resources of each party to offer a total customer solution around the globe for any vehicle program and all current fuel options, the companies say.

Delphi has extensive experience and resources in the design and manufacture of the "hot end" (manifold and catalyst, including manifold converters, diesel converters and spinforming technology), with Bosal specialising in the design and development of the "cold end" (from intermediate muffler to tailpipe.)

The alliance will ensure that current customer relationships are maintained while future customers will access the alliance through one single initial point of contact.

Bosal and Delphi will also cooperate through new manufacturing arrangements which will allow each party to 'better meet customer supply contracts without the need for major infrastructure investment'.

"This is a very innovative and exciting alliance which will deliver significant added value to customers of both Delphi and Bosal," said Karel Bos (1961), CEO, Bosal Group. "The alliance is an excellent technical, commercial and geographical 'fit', enabling us to respond faster, more cost-effectively and completely for our customers around the world. It will also open up a wider customer base for our breakthrough cold end innovations which are delivering significant weight savings and other related benefits."

"We welcome this alliance with Bosal, an independent Tier 1 supplier with recognized expertise in cold end exhaust applications," said John Fuerst, Delphi's exhaust systems business line executive. "It will help us respond better to the needs of our global customer base for complete exhaust systems, by providing a single global point of access to an unrivalled wealth of expertise and resources, yet delivering locally through our shared infrastructure."

The alliance will become effective upon completion of all relevant formalities under competition laws, including obtaining any required approvals from governmental authorities. Both parties will begin making the necessary logistical and transitional activities to make the alliance seamless to customers, with scheduled completion in 2005.