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Delphi Climate Control System on 2006 Ford Fusion Sedan


Supplier’s Latest HVAC Module, Compressor Technology Featured on North American International Auto Show ’Car of the Year’ Finalist.

February 2, 2006, TROY, Mich. -- Delphi Corp. is supplying the climate control system on Ford Motor Company’s recently launched 2006 Fusion mid-size sedan. The business represents the first Delphi-produced climate control system to be featured on a Ford vehicle. Delphi displayed its content at the Society of Automotive Engineers Detroit Section meeting this week at the Ford Conference and Events Center in Dearborn, Mich.

The Fusion was one of the top three vehicles reaching finalist status in the 2006 North American Car of the Year contest. Delphi supplies the compact heating, ventilation and air conditioning (HVAC) module, air conditioning compressor, air conditioning lines, heater hoses, and HVAC control heads and sensors for the vehicle. The Fusion utilizes the same architecture as the Mercury Milan and Lincoln Zephyr to which Delphi supplies the same content. To accommodate all three vehicles, the climate control system has been designed with single-zone manual, single-zone automatic and dual-zone automatic control head options for use across one basic HVAC module architecture.

Delphi’s estimated sales revenue for the business is approximately $345 million over the life of the contract.

“We’re proud to have Delphi’s latest comfort and convenience technologies showcased on the 2006 Ford Fusion. This is an exciting platform being embraced by automotive consumers and recognized by the industry,” said Ronald Pirtle, president, Delphi Thermal & Interior, and vice president, Delphi Corp. “We plan to build on our strategic relationship with Ford by surpassing their expectations on the quality, delivery, value and performance of our products.”

The compact HVAC module helps free up valuable real estate in the Fusion’s instrument panel. Delphi’s 47mm evaporator and 25mm heater core are key enablers for the compact geometry. Delphi’s Split Tongue & Groove technology, a robust sealing system using snap features to assemble HVAC cases, gives the system an airtight seal design and improves cost by eliminating the need for foam and rubber seals. The technology was recently named a finalist in the Society of Plastics Engineers 2005 ’Most Innovative Use of Plastics’ awards.

“Delphi’s Split Tongue & Groove technology improves the overall driving experience by eliminating annoying whistle’ noises and untreated air leaks from the HVAC module that can compromise comfort in the passenger compartment,” Marshall Andrews, business line executive, climate control and powertrain cooling systems, Delphi Thermal & Interior, said.

The Ford Fusion climate control system also makes use of Delphi’s SP-17 air conditioning compressor, a 10-cylinder fixed displacement unit offering high efficiency and quiet performance in a compact, lightweight and durable package.

In the fall of 2005, Delphi was selected to be a part of Ford Motor Company’s Aligned Business Framework.

At Delphi, we help make cars safer, cleaner, more efficient, and fun to drive. For more information about Delphi Corp. (OTC: DPHIQ), visit

This press release, as well as other statements made by Delphi may contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, 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. 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 (“DIP”) facility; the Company’s ability to obtain court approval with respect to motions in the chapter 11 proceeding 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; 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; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company’s United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004 and its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005 and current reports on Form 8-K. 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 pre-petition 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 proceedings 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. As described in the Company’s public statements in response to the request submitted to the United States Trustee for the appointment of a statutory equity committee, holders of Delphi’s common stock and other equity interests (such as options) should assume that they will not receive value as part of a plan of reorganization. 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 and as stated in its October 8, 2005 press release announcing the filing of its chapter 11 reorganization cases, 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.


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