SOURCE: Delphi Corporation

November 17, 2008 09:49 ET

Delphi's First Prepackaged Airbag/Steering Wheel Featured on Smart Fortwo Vehicles

Delphi Focuses on Ease-of-Assembly Safety and Controls Systems for Daimler's Smart Vehicles

TROY, MI--(Marketwire - November 17, 2008) - Delphi Corporation (PINKSHEETS: DPHIQ) is providing its first prepackaged driver side airbag assembly in the steering wheel for the Smart Fortwo vehicle made by Daimler. The steering wheel and airbag are usually shipped as separate components. Delphi is also supplying the passenger side airbag and passive occupant detection system for the fuel-efficient mini car.

In addition, Delphi supplies the steering wheel clock spring with integrated steering angle sensor, wash/wiper stalk, direction indicator stalk and selespeed switches on the steering wheel for the vehicle.

"Our prepackaged approach to the steering wheel and airbag contributes to the Smart Fortwo's quality and value by helping to reduce cost," said Beth Schwarting, lead executive for Delphi's Safety Systems Product Business Unit. "As one of the most highly interfaced systems in the vehicle, steering wheels need to be durable and stylish with the right functional feel. Our design provides the right features and style that uniquely fit the Smart Fortwo's interior and image."

The Smart Fortwo has a high-quality, two-spoke or three-spoke grain textured steering wheel to provide a sporty feel, fit and finish. The prepackaged airbag adds increased value and simplicity in the assembly process.

As one of the world's largest steering wheel and airbag producers, Delphi combines design expertise with global lean manufacturing to provide attractive and functional products. Building steering wheels to meet manufacturers' requirements, Delphi's two, three or four-spoke steering wheels can include features such as integral airbags and steering wheel mounted accessory controls. Delphi manufactures steering wheels in polyurethane, vinyl base material over cast alloy or welded steel structures that include leather-wrap, heated rim, wood and other decorative trim options.

With a complete portfolio of OEM safety equipment, Delphi designed and manufactured the first automotive airbag in 1974. Today, the company produces more than 20 million airbag systems per year to help manufacturers make vehicles safer and help meet safety requirements. The company offers a number of frontal airbag designs with adaptive features like cushion deployment volume, inflation output and venting based on crash conditions. The airbag systems are compatible with customer instrument panels and easily integrated into vehicles.

In addition, Delphi has a full line of active safety products, including adaptive cruise control, collision warning, lane departure warning, side alert, active night vision, intelligent headlight control and pedestrian recognition.

FORWARD-LOOKING STATEMENTS

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, its advance agreement with GM, to obtain an extension of term or other amendments as necessary to maintain access to such facility and advance agreement, including the contemplated accommodation agreement, extension of the advance agreement with GM, and partial temporary accelerated payment agreement with GM; 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 achieve all of the conditions to the effectiveness of those portions of the Amended and Restated Global Settlement Agreement and Amended and Restated Master Restructuring Agreement with GM which are contingent on Delphi's emergence from chapter 11; the ability of the Company to obtain Court approval to modify its amended Plan which was confirmed by the Court on January 25, 2008 as set forth in its filing on October 3, 2008 and to confirm such modified plan or any subsequent modifications to the confirmed plan or any other subsequently confirmed plan of reorganization and to consummate such plan; 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 as described in the proposed modifications to its Plan as filed with the Court 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 or those of its principal customers 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, 2007 filed with the SEC, 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.

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