SOURCE: Delphi Corporation

May 15, 2007 10:31 ET

Delphi Surpasses Airbag Production Milestone -- 100 Million and Growing

Company Cites Integration of Inflator Capabilities, Investments in Global Footprint, in Future Growth Initiatives

TROY, MI -- (MARKET WIRE) -- May 15, 2007 -- Delphi Corporation (PINKSHEETS: DPHIQ) has produced more than 100 million airbags for vehicle manufacturers around the world, company officials announced today. The milestone was achieved during the first quarter of 2007, and confirmed during a review of the company's year-to-date operations.

"Our team is excited to surpass the 100 million threshold," said Beth Schwarting, lead executive for Delphi's Safety Systems product business unit. "At the same time, we remain intently focused on building the internal development and manufacturing competencies we need to achieve future milestones like this one. For instance, our strategy to vertically integrate inflator technology plays a key role in Delphi's plans to deliver competitive, innovative airbag systems to our global customer base."

In September 2004, Delphi announced it had acquired Dynamit Nobel AIS GmbH Automotive Ignition Systems, a designer and manufacturer of initiators, propellants, micro-gas generators and related products for the automotive industry, to strengthen its overall inflator technology portfolio. "With this acquisition, Delphi became capable of supporting the development and manufacturing of pyrotechnic and stored gas inflators," Schwarting said. "Now, we are applying these technologies to win with customers around the world."

Delphi also confirmed the company has completed an expansion of its engineering facility in Munmak, South Korea. Recent upgrades include a new semi-hydraulic test sled, a mini sled for seat belt development and certification, safety-specific product development facilities, and offices to support increased staff levels. The test sled, now operational, supports enhanced safety system testing in the region. It is intended to aid in the development of products that help Delphi's customers meet increasingly stringent frontal and side protection safety regulations.

"Delphi is building solid local capabilities to serve global vehicle producers wherever they do business," Schwarting said. "The installation of high-value test equipment in Korea tangibly demonstrates our commitment to our safety customers in Asia and allows us to provide them with high-quality, timely safety system testing."

Delphi designed and manufactured the first production airbag in 1973. "Delphi has been at the forefront of airbag safety technology for more than three decades," said Schwarting. "The combination of our global footprint, experience in systems integration and robust portfolio of safety products has enabled Delphi to create significant value for our customers."

Delphi's safety experience and portfolio

Delphi is a leader in integrating a broad portfolio of safety technologies into systems that help to optimize performance and value for vehicle manufacturers.

Delphi can deliver several frontal airbag designs with adaptive features such as cushion deployment volume, inflation output and venting based on crash conditions. They are compatible with customer instrument panels and easily integrated into vehicles.

Delphi's dual-depth airbags are designed to protect vehicle occupants -- whatever their weight, stature or position -- in moderate to severe crash situations. Ongoing innovation has expanded adaptability to help boost protection for occupants of all sizes.

The company's curtain airbags provide head protection in side impact and rollover events, using unique inflator and cushion technology to extend protection during multiple impacts. Recent technical advances in Delphi's curtain technologies also offer efficiency improvements for vehicle makers during the development process.

Additionally, Delphi offers a robust lineup of safety electronics. The company's airbag control units interface with its frontal impact sensors, side impact sensors, occupant classification systems, vehicle indicators and deployable safety devices to help determine targeted protection strategies for specific crash events.

Other Delphi safety electronics include vision-based active safety systems -- including lane departure, rain sensing, active night vision, drowsy driver alert and driver distraction alert systems -- as well as radar-based technologies such as pre-crash sensing, smart cruise control and side alert systems.

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. 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 Note 2, Transformation Plan and Chapter 11 Bankruptcy, of our Annual Report on Form 10-K for the year ended December 31, 2006) 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, 2006, 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 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.

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