The Operation Will Provide a Cost-Effective Dynamic Test Capability For Delphi's High-Technology Automotive Ride and Handling Systems

The Marquette County Commission has approved a five-year lease agreement with Delphi Automotive Systems (NYSE: DPH - news) that will provide Delphi with extensive winter test capabilities at the former K.I. Sawyer Air Force Base. The lease includes 113 acres of former Air Force office buildings, runways and grounds, as well as the construction of a 5,000-square-foot engineering garage and office building adjacent to the test area.

Delphi Energy & Chassis Systems will operate the facility as an extension of Delphi's Technical Center in Brighton, Mich., using existing engineering personnel on temporary assignment from various Delphi technical centers during the winter months. According to R. Scott Bailey, director of engineering for Delphi's Energy & Chassis division, the Marquette facility will greatly enhance Delphi's ability to develop the advanced ride and handling systems that are being designed in to many new vehicles.

"With the steadily increasing popularity of sport-utility vehicles (SUVs), stability enhancement systems such as Delphi's brake-based Traxxar(TM) and suspension-based Dynamic Body Control system are in increasing demand," said Bailey. "The new Marquette facility provides room to safely test these systems at or beyond their design limits to assure our customers get the best product possible.

"The new garage and support building will also allow us to simultaneously work on several customer's vehicles in separate, secure areas to assure that product confidentiality is maintained at all times," Bailey added. "Good air transportation, the lengthy period of cold weather provided by the Marquette area and the attractive lease package offered by Marquette County were also important factors in selecting this location."

Delphi is recognized as a leader in advanced-technology vehicle stability enhancement and body control systems. Traxxar was first introduced by Cadillac as "StabiliTrak" in 1996 and is currently available on the Cadillac DeVille and Seville, Pontiac Bonneville, Buick Park Avenue and LeSabre as "StabiliTrak and the Oldsmobile Aurora as their 'Precision Control System." Delphi also partnered with Rover Group to develop the Rover Discovery's "A.C.E," or "Active Cornering Enhancement," a hydraulically-actuated body control system.

Multi-national Delphi Automotive Systems, with headquarters in Troy, Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in mobile electronics and transportation components and systems technology. Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communication -- provide comprehensive product solutions to complex customer needs. Delphi has approximately 216,000 employees and operates 179 wholly owned manufacturing sites, 41 joint ventures, 53 customer centers and sales offices and 31 technical centers in 39 countries. Delphi can be found on the Internet at www.delphiauto.com .