SOURCE: Delphi Corporation

May 14, 2007 13:01 ET

Delphi Earns Highest Toyota Supplier Quality Honor

Delphi Earns Three Awards From TEMA, Including Highest "Superior" Honor for Thermal Products

Delphi Also Earns "Excellent" Honors for Electrical/Electronic Architecture Systems

TROY, MI -- (MARKET WIRE) -- May 14, 2007 -- Toyota Engineering & Manufacturing North America, Inc. (TEMA) has named Delphi Corporation (PINKSHEETS: DPHIQ) one of its top suppliers for outstanding performance during 2006.

During its Annual Business Meeting and Awards Ceremony, held in Erlanger, Ky., on March 27, TEMA presented Delphi with three awards.

Among them included the automaker's highest supplier honor -- the Superior Quality Performance award, for the supply of thermal systems and components, including HVAC modules, condensers and radiators.

Delphi's thermal products have earned consistent recognition from TEMA. This year's honor represents Delphi's sixth consecutive Quality Award and fourth consecutive Superior Quality Performance Award from TEMA for thermal-related products.

Delphi thermal products additionally won a second award, for "Excellent Value Improvement." This award considers cost-competitiveness, along with quality and delivery.

Delphi's award-winning thermal content is featured on the Toyota Tacoma Pickup and the Pontiac Vibe, a product of a joint venture between TEMA and General Motors.

"It's very important to us to make sure that Toyota is pleased with Delphi's performance," said Ron Pirtle, president, Delphi Thermal Systems. "Achieving this recognition from an esteemed customer like Toyota is truly an honor and offers further acknowledgment of Delphi's on-going commitment to excellence. It also reflects the consistent, outstanding work that our team is doing and our ability to meet the highest standards in the industry."

"I am very proud that Toyota has once again presented us with their highest grade of Quality recognition," said Marshall Andrews, product business unit director, Delphi Thermal automotive systems. "It takes great consistency and teamwork to perform at this high of a level, day-in and day-out."

TEMA also recognizes Delphi for electrical/electronic distribution systems

Delphi also received TEMA's "Excellent" Quality Award for electrical/electronic distributions systems supply.

"This is tremendous recognition from one of our most important customers," Doug Gruber, product business unit director, Delphi Electrical/Electronic Distribution Systems North America. "So much of a vehicle's performance and reliability depends on having an exceptional E/E systems architecture, and we're proud to be able to provide Toyota with the level of quality they expect. We are continuing to work hard to deserve their continued confidence."

The Excellent Quality Award is based on Delphi's 2006 performance at NUMMI, TMMC, and TMMBC for Corolla, Matrix, Vibe and Tacoma wiring packages.

TEMA announced the awards at the company's Annual Business Meeting and Awards Ceremony, which brings together the automaker's approximately 500 North American suppliers to share expectations for the coming business year and to recognize outstanding performance among suppliers.

"Thanks to our suppliers' focus on quality, delivery, diversity, technology and development and value improvements, they have been a key part of Toyota's success in North America," said Atsushi Kume, senior vice president of TEMA. "Toyota's success here is linked to the success of our suppliers."

Delphi's relationship with Toyota

Delphi has supported Toyota for more than 20 years. Delphi's technology -- ranging from air conditioning systems, steering columns, sensors, electrical/electronics distribution systems, and more -- is currently featured on 14 Toyota vehicles, including the popular Corolla, Camry and Avalon.

Delphi has also expanded its global footprint to better serve Toyota -- including the opening of a new sales office in Toyota-city last December, and the opening of the new Delphi Furukawa Customer Service Center in Ann Arbor, Mich., last July.

For more information about Delphi (PINKSHEETS: DPHIQ), 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. 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 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; the Company's ability to satisfy the terms and conditions of the Plan Framework Support 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); 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, 2005 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 Annual Report on Form 10-K for the year ended December 31, 2005 filed with the SEC including the risk factors in Part I. Item 1A. Risk Factors, contained therein. 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 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 pre-petition liabilities.

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