Securing its Second Electric Power Steering Customer in Europe

Delphi Automotive Systems' (NYSE:DPH) E-STEER(TM) Electric Power Steering System will be available as an option on Volkswagen's new 2001 Lupo 3L TDI arriving in Europe this autumn. This marks the second time in the past year that Delphi will reach the European market with it's innovative electric power steering system, which debuted in a production application in August 1999.
The E-STEER(TM) all-electric, engine-independent design eliminates the traditional hydraulic power steering system's pump, hoses, hydraulic fluid, drive belt and pulley on the engine, thereby reducing mass and increasing packaging flexibility.

"We are pleased to be working with Volkswagen on electric power steering for the Lupo," stated Jean de Montlaur, managing director of Delphi's steering division in Europe. "E-STEER(TM)'s sophisticated, fully-electric design will bring many benefits to Volkswagen's customers including added fuel economy, added safety, improved acceleration and dependability."

With fuel prices soaring, fuel economy could be considered the primary benefit of this system. E-STEER(TM) helps improve a vehicle's fuel economy by an average of five percent compared with a traditional hydraulic steering system. The VW Lupo, noted for its high fuel economy performance, gets approximately 3 liters (diesel) per 100 kilometers with the E-STEER(TM) system. The system's mileage impact by vehicle type ranges from .2 liters per 100 kilometers (1.3 miles per gallon) improvement for subcompact vehicles to .16 liters per 100 kilometers (0.45 miles per gallon) improvement for mid- to large-size passenger vehicles. In fact, the system's fuel efficiency performance rivals that of a manual steering system.

On the environmental front, a system without any fluids means no leaks -- so related warranty concerns can be significantly reduced. Additionally, all of the materials needed for the pump, reservoir, belts, hoses and fluid won't need to be used, disposed of, or recycled, making E-STEER(TM) more environmentally friendly.

The E-STEER(TM) system's steering effort is correlated to vehicle speed, steering torque and steering position. Delphi's advanced algorithms, or mathematical formulas, turn these vehicle inputs into world-class steering feel.

"This totally electric steering system provides the same level of comfort and control that drivers throughout the world demand, while eliminating many of the trade-offs inherent in today's hydraulic steering systems," states Paul Tosch, Delphi Saginaw Steering Systems president and Delphi vice president.

Some of the advanced features of Delphi's E-STEER(TM) system can actually help enhance the returnability characteristics of the steering with its assisted return-to-center feature. Assisted return-to-center allows the suspension designer more latitude in setting parameters -- no longer does the designer have to make suspension trade-offs to achieve the necessary returnability characteristics.

"State-of-the-art electronics, including sensor and controller technologies, have dramatically improved our ability to enhance the performance of our steering systems," said de Montlaur. "The expertise we have gained from engineering and manufacturing E-STEER(TM) will allow Delphi to aggressively move forward in the development of future electronics-based, integrated chassis systems."

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 .