SOURCE: Delphi Corporation

August 31, 2007 14:18 ET

Delphi Answers Global Refrigerant Needs

Delphi Applies Expertise, Knowledge and Leadership to Important Industry Issue

FRANKFURT, GERMANY--(Marketwire - August 31, 2007) - As automakers struggle to meet upcoming air conditioning refrigerant emissions legislation, Delphi Corporation (PINKSHEETS: DPHIQ) is developing several options that fulfill the new regulations and are also suitable for a wide range of climates and cost structures.

Heating, ventilation and air-conditioning (HVAC) systems contribute to global warming due to energy usage during operation and by refrigerant leakage into the atmosphere. The climate impact of the refrigerant itself is defined as its Global Warming Potential (GWP). In 2006, the European Union banned the use of refrigerants with a GWP that is greater than 150 for all new Type-Approvals (new vehicle platforms) from 2011 and for all new vehicles as of 2017. The current refrigerant, R-134a, has a GWP of 1430.

Delphi is currently developing several options below the 150 GWP level, including R-744, R-152a and refrigerant blends to help automakers meet the legislation in a way that is both cost effective for automakers and drivers in the global community.

"Delphi has a long history with developing HVAC systems for alternative refrigerants," said James Giardino, general director of engineering, Delphi Thermal Systems. "More than a decade ago we led the industry through the migration from CFC-12 (sometimes referred to as Freon®) to R-134a. We are using that expertise again today to help automakers convert to new alternatives."

R-744 vs. R-152a vs. new blends

Carbon dioxide, formally known as R-744, when used as a refrigerant, virtually eliminates the global warming effect of refrigerant leakage, but its advantage is reduced in higher ambient climate conditions, due to its lower energy efficiency. Therefore, R-744 may be a solution for Central and Northern Europe but would be difficult to adopt in areas such as the southern United States, the Middle East, and the equatorial regions of the world. Additionally, with R-744, its inherently high pressure requires redesign of major HVAC system components adding significant costs and presenting some safety concerns requiring resolution.

R-152a, commonly used as an aerosol propellant for hair sprays, shaving creams, baby care products, dusting sprays and spray paints, offers comparable climate performance to R-744. R-152a is currently produced in China, Japan, and the United States. Major current R-134a thermal system components can be used with R-152a making the switch to R-152a a less costly conversion, from an industry investment point of view. Additionally, R-152a systems use proven technology and have been shown to provide similar comfort and performance as an R-134a system.

A key concern with R-152a has been its mild flammability, which Delphi believes could be safely considered with the application of secondary loop technology. Delphi's system keeps the R-152a entirely under the hood and away from the passenger compartment.

"Delphi's secondary loop system, coupled with Delphi's system controller, can provide a 13 to 19 percent reduction in fuel usage by the air conditioning system," said Giardino. "This is a valuable energy savings."

Delphi is currently working with the United States Environmental Protection Agency (EPA) and a number of OEMs to demonstrate the value of its R-152a system to a global audience.

Additionally, a third set of options now exists. New refrigerant blends -- mixtures of two or more refrigerants including newly-invented materials -- have been recently proposed and are currently under study by automakers. Although potentially useful, these refrigerants create the need to consider production-readiness timing and require exploration of safety, environment, stability and durability characteristics. Delphi continues to work closely with the global automotive industry to fully investigate the potential use of these new refrigerant blends.

Delphi's Perspective

"We believe that too many uncertainties exist, at the present time, to get consensus on a single solution for the global market," said Giardino. "The environmental impact, costs, service readiness, reliability and safety are just a few reasons why a global switch to just one alternative refrigerant may not be possible right now. Delphi's goal is to offer a range of possible viable refrigerant solutions to global automakers to meet the European legislation."

"As we did 15 years ago with the conversion to R-134a, we're going to use our expertise and knowledge to help lead the industry's next refrigerant transition," he said. "We're actively engaged in helping our OEM customers and the industry identify and implement the best solution possible."

For more information on Delphi, please visit


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 revised Equity Purchase and Commitment 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.

Contact Information