Wednesday, July 12, 2006

Delphi, Brilliance Form Engine Management Systems Venture - Delphi Automotive Systems, Brilliance China Automotive Holdings

Delphi Automotive Systems said it will enter a co-development agreement with Brilliance China Automotive Holdings Ltd. to supply Jinbei- branded vehicles with engine management systems (EMS) during the next four years. Production of these vehicles will begin in September 2001, Delphi said. The agreement covers four model years and is worth approximately $50 million to Delphi.

"We are working diligently to grow our business in Asia Pacific," said Guy C. Hachey, vice president of Delphi Automotive Systems and president of Delphi Energy & Chassis Systems. "Delphi is clearly a leader in EMS, utilizing its unique 'building block' approach. In this case, we took all of the issues important to our customer: low emissions, fuel economy, vehicle performance, dependability and value, and offered them a complete systems solution."

Engine management is the science of equipping and calibrating an engine to achieve clean exhaust emissions while providing the best possible performance, fuel economy and driveability. The EMS project with Brilliance involves 11 Delphi technologies.

Delphi's engine management systems will be applied to the Brilliance 2.2L 491 (4Y) engines scheduled for fall production. "Under this new agreement with Brilliance, 70 percent of the system components will be manufactured in Delphi-owned or joint venture facilities in the Asia Pacific region," noted Choon T. Chon, president of Delphi Automotive Systems, Asia Pacific.

"As we continue to grow our customer base in this key region, more original equipment manufacturers (OEMs) will realize we can accommodate their major concerns: compliance with local legislation and growing competition." Delphi said it will utilize its Beijing Delphi WanYuan EMS Co. Ltd. facility and the Delphi Delco Electronics plant in Suzhou, China, for this project.

"Brilliance has been expanding quickly in the automotive sector and we are keen to work with a world leader in automotive components and systems, like Delphi," said Rong Yang, chairman, president and CEO of Brilliance.


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