Reorganization

Transformation Plan

Today, Delphi outlined its strategy for its return to stable, profitable business operations through a broad-based global restructuring in order to complete the Chapter 11 cases for Delphi and 41 of its domestic U.S. subsidiaries in the first half of 2007. Delphi's transformation plan is intended to allow the company to become competitive in the global marketplace through resolution of legacy liabilities and burdensome restrictions under current labor agreements. The plan will also streamline the company's global product portfolio and manufacturing footprint to preserve its core businesses and improve internal operating efficiencies.

Delphi announced that in order to complete its restructuring process, the company must focus on five key areas.

Delphi must:

• Modify its U.S. labor agreements to create a competitive arena in which to conduct business going forward.
• Conclude its negotiations with GM to finalize its financial support for the legacy and labor costs the company currently carries and to ascertain its business commitment to Delphi going forward.
• Streamline its product portfolio to capitalize on its world class technology and market strengths and make necessary manufacturing alignment with the company's new focus.
• Transform its salaried workforce to ensure that its organizational and cost structure is competitive and aligned with its product portfolio and manufacturing footprint.
• Devise a workable solution to the company's current pension situation, whether it is to stretch out pension payments or develop an alternative solution.

Management and the Board of Directors are mindful of the impact the implementation of this plan will have on some of our stakeholders, including Delphi's employees, suppliers, and communities, yet ultimately, these actions will result in a stronger company with future global growth opportunities.