DPSS is expanding its of distribution of diesel products in an effort to be well positioned to meet the emerging needs of the North American aftermarket as it services and repairs diesel-powered vehicles.
Release Date: October 31, 2006
TROY, Mich. – Delphi Product & Service Solutions announced today at AAPEX, the Automotive Aftermarket Parts Expo in Las Vegas, Nev., that it is expanding its distribution of diesel products in an effort to be well positioned to meet the emerging needs of the North American aftermarket as it services and repairs diesel-powered vehicles.
“We fully expect that the U.S. passenger car and light-duty truck market will shift – much as it has done in Europe – to include more diesel-powered vehicles,” said Francisco A. (Frank) Ordoñez, president, Delphi Product & Service Solutions and vice-president, Delphi Corp. “We intend to play an active role in getting the channel prepared to handle these repairs.”
Delphi Diesel Aftermarket North America is the Delphi unit that currently provides a comprehensive portfolio of diesel replacement products, diagnostic tools and training to more than 400 specialists in the U.S. and Canada.
“In recent months, our Independent Aftermarket customers have stated their interest in expanding their product offerings to include diesel,” Ordoñez said. “This interest represents a great opportunity for Delphi to continue to grow its diesel business.”
“The evolution of diesel and gasoline engine management systems brings new synergies in the specialist and traditional aftermarket. Today’s announcement provides exciting new business opportunities for Delphi customers,” said Michael Rayne, managing director, Delphi Diesel Aftermarket.
Starting in March 2007, Delphi will offer the aftermarket a range of original equipment (OE) and all-makes diesel replacement parts, including lift pumps, injectors, filter elements and glow plugs for light- and heavy-duty applications. Further details on vehicle makes, models and applications will be announced at the time of program roll out.
Delphi is in a unique position to be at the forefront of this expected North American market change given its strong, original equipment manufacturer (OEM) diesel business. Delphi provides global automakers with complete end-to-end diesel engine solutions, including air management, fuel injection, exhaust after-treatment and associated electronic controls. Between 2000 and 2004, Delphi manufactured nearly four million diesel common rail systems, globally.
Delphi Diesel Aftermarket has more than 60 years of experience as a leading manufacturer of diesel fuel injection systems. Headquartered in the United Kingdom, it is the No. 2 global provider of diesel parts, service support and diesel test equipment.
“Diesels are coming,” Ordoñez said. “We’ve seen market projections that show that diesel sales penetration in the U.S. could reach 10 percent by 2010, mainly in the sport utility and light-truck areas. Repairs alone to components such as exhaust gas recirculation (EGR) valves, manifold restriction valves and the exhaust system will present key, diagnostic challenges to the aftermarket.
“We at Delphi know this, understand this,” Ordoñez continued, “and through the partnership between Delphi Diesel and Independent Aftermarket, we will offer our customers a complete, competitive solution to this new and exciting market opportunity.”
FORWARD-LOOKING STATEMENT: This press release, as well as other statements made by Delphi may contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 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 (“DIP”) facility; the Company’s ability to obtain court approval with respect to motions in the chapter 11 proceeding 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; 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; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company’s United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004 and its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005 and current reports on Form 8-K. 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 proceedings 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. As described in the Company’s public statements in response to the request submitted to the United States Trustee for the appointment of a statutory equity committee, holders of Delphi’s common stock and other equity interests (such as options) should assume that they will not receive value as part of a plan of reorganization. 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 and as stated in its October 8, 2005 press release announcing the filing of its chapter 11 reorganization cases, 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.
For more information contact:
Delphi
Carrie Wright
carrie.wright@delphi.com
+1 248.267.8687
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