Delphi and BAIC Open JV in Beijing
JV links Delphi's technology expertise with BAIC's manufacturing presence to tap growing China auto safety market
Release Date: October 26, 2007
Beijing, China — Today Delphi Corporation and Beijing Automotive Industry Holding Company Ltd. (BAIC) celebrated the opening of their joint venture which manufactures seat belts.
Located in Changping District, Beijing, the Beijing Delphi Automotive Safety Products Co., Ltd., manufacturing facility has 1,800 square meters of floor space..
The joint venture started production two months ago for customers in the China market and has secured future production contracts in the European markets.
The cooperation between Delphi and BAIC addresses growing market demand for safety products in China and throughout Asia, according to Beth Schwarting, Safety Systems product business unit executive at Delphi Electronics & Safety Division. "This joint venture will allow Delphi to leverage our innovative safety technologies and lean manufacturing expertise with BAIC's China manufacturing presence to build a foundation for growth," she stated.
"This cooperation is an important development for the auto parts industry in Beijing. The adding of a safety products plant to the portfolio of Beijing's auto industry is a significant contribution to the construction of auto parts platform, and to complete the auto industry chain in Beijing," said BAIC's deputy general manager and head of the Parts & Components Group, Guo Xinmin. "BAIC has several OEMs within its organization, and by collaborating with Delphi and other multinational companies, BAIC expects to strengthen its competitiveness and brand image in the China market. We are confident that this cooperation will be a win-win for BAIC and Delphi."
The joint venture will enable Delphi and BAIC to more effectively serve the rapidly developing Asia Pacific market and to support global customers with operations in Asia Pacific and other regions.
"The Delphi/BAIC business venture will help Delphi support the growth in safety related products in China and other regions," said Daniel Salmons, Asia/Pacific managing director for Delphi Electronics & Safety Division. "We are very excited to team with BAIC to provide quality products and services for our global customers."
The China market for safety related products is expected to continue to grow rapidly since Chinese regulators are calling for enhanced safety features for all vehicles. In 2005, rear seat belts were made a standardized feature for light-duty passenger vehicles and China is implementing light commercial vehicle requirements that follow European guidelines.
Delphi Corporation is a world leader in mobile electronics and transportation components and systems technology. For more than 100 years, Delphi has had a proven track record innovating automotive technology such as the first production of airbags.
Delphi started operation in China in 1993. Today Delphi's investment in China has reached more than US$500 million, and the company has set up 17 legal entities in China.
Pioneering the auto industry in Beijing 50 years ago, BAIC now has grown into an industry group with capacity ranging from vehicle manufacturing, vehicle equipping to asset management. BAIC boasts strong competitive edge in vehicles and auto parts manufacturing, with four OEMs under its organizational structure: BAIC Foton, Beijing Hyundai, Beijing Benz-Dymler Chrysler and Beijing Automotive Co., Ltd.
For more information about Delphi (PINKSHEETS: DPHIQ), visit www.delphi.com.
For more information about BAIC, visit www.bqkgdjw.com.
FORWARD LOOKING STATEMENT
This press 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; the terms of any reorganization plan ultimately confirmed; 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 develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; the Company's ability to satisfy the terms and conditions of the Equity Purchase and Commitment Agreement (including the Company's ability to achieve consensual agreements with GM and its U.S. labor unions on a timely basis that are acceptable to the Plan Investors in their sole discretion); the Company's ability to satisfy the terms and conditions of the Plan Framework Support Agreement; 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 "Potential Divestitures, Consolidations and Wind-Downs" of the Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC) 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 and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, including the risk factors in Part I. Item 1A. Risk Factors, contained therein and the Company's quarterly periodic reports for the subsequent periods, including the risk factors in Part II. Item 1A. Risk Factors, contained therein, filed with the SEC. 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. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy cases to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. In addition, under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to prepetition liabilities.
Scarlett Liu
scarlett.liu@delphi.com
86 (21) 2896.7336
BAIC
Li Fengjun
lfjbaw@sina.com
86 (10) 6313.2253
