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Delphi Corporation: Global Emissions Standards, Fuel Economy Regulations to Accelerate Demand for Delphi Hybrid, Electric Techn

^{Published on 2009-09-14 07:00:34 - Market Wire}
 

FRANKFURT, GERMANY--(Marketwire - September 14, 2009) - The electrification of the automobile is underway. Hybrid vehicles are the here and now, and completely electric vehicles are on the horizon. Nowhere will that be more apparent than at IAA 2009, the international motor show for passenger cars in Frankfurt. Here, visitors will experience future models with a heightened focus on hybrid and electric drive, and experts from Delphi Corp. (PINKSHEETS: [ DPHIQ ]) will be on hand to discuss this pending shift in automotive technology.

Germany has instituted a plan to have one million electric cars on the road by 2020. The United States recently announced more stringent CAFE (Corporate Average Fuel Economy) standards requiring automakers to increase the average fuel economy of their U.S. fleet sales to 35.5 miles per gallon by 2016, an increase of eight miles per gallon, four years sooner than expected. Automakers will also be required to cut by 25 percent the amount of greenhouse gases their new cars emit in the United States. In China, the government has subsidized research and development of hybrid and fuel cell technology to make use of more renewable energy sources and is looking to enact more stringent emissions rules for its automakers. Research studies indicate that, by 2020, there could be 13 million hybrids, plug-in hybrids, electric or fuel cell vehicles on the road.

"It's a 'perfect storm' of factors that all lead to the same conclusion. Hybrid electric vehicle (HEV) technology is forecasted to steadily increase in the short term, and we expect to see a rapid progression to fully electric vehicles that will become necessary to meet these global standards," said Dr. Andrew Brown, Jr., Delphi executive director and chief technologist. "We also expect to see a greater migration of HEV technology beyond passenger cars to the commercial vehicle market as well."

A global challenge requires a global solution

With technical centers in every major automotive market around the globe, and manufacturing sites in 34 countries, Delphi is ideally situated to help automakers navigate the requirements of the next-generation hybrids and new electric vehicles. The company is currently supplying more than ten leading automotive companies with hybrid vehicle technology.

"Delphi's engineering expertise is unique in that our innovative team designs more than components, we offer full system integration," Brown said. "From power electronics to electrical/electronic architecture to thermal management, we can simplify the HEV process for automakers."

Building on more than 70 years of automotive electronics experience, Delphi is focused on reducing the cost of hybrid power electronics while, at the same time, designing in market-leading functionality and reliability. Key products include battery pack systems, inverters and DC/DC (direct current to direct current) converters. Since 2000, Delphi has had more than 100 patents issued in power electronics and advanced energy systems.

Delphi technology delivers maximum value and performance to today's HEVs

HEVs present unique challenges when it comes to electrical/electronic (E/E) architecture. "These types of vehicles have rigorous power requirements and demand robust component performance with additional safety features. They also provide a uniquely challenging operating environment. The shift to fully electric vehicles will place even greater emphasis on E/E architecture," Brown said. Delphi has high-power shielded connection systems, high-voltage wiring assemblies, battery cell interconnects, battery monitoring devices, battery service disconnect devices and high-power electrical centers to meet these changing needs.

Delphi gasoline and diesel engine management systems are capable of being seamlessly integrated with hybrid vehicle architectures. Delphi has developed software that caters specifically to integration of the internal combustion engine with the additional propulsion and regenerative braking of a hybrid electric vehicle. Additionally, Delphi has developed advanced integrated evaporative emission systems for hybrids and partial zero-emissions vehicle hybrids.

Delphi is also developing solutions to address the thermal challenges hybrid vehicles pose to traditional heating and cooling technologies. For example, HEV engines can shut-off at any time during a drive cycle such as while waiting at a stop sign or traffic signal. When a conventional engine shuts off, so does the air conditioning compressor, which could mean a shift in cabin comfort. Delphi has developed a Phase Change Material (PCM) storage system that allows a hybrid vehicle to store excess thermal energy while the engine is running and then releases this energy during "engine off" idle stops to maintain constant comfort in the vehicle. Under the hood, Delphi is also developing powertrain cooling solutions to address the thermal management needs posed by the power electronics, batteries and electric motors used in hybrid vehicles.

Another key element in this movement is preparing the service industry to safely and accurately diagnose and repair complex hybrid and electric vehicle systems. HEV technology represents a fundamental paradigm shift for garages. Delphi's OE hybrid system expertise and comprehensive suite of aftermarket training and support helps shops understand the technology and how to safely diagnose and repair, as well as stay connected to the latest OE vehicle advances.

For more information about Delphi Corp., visit [ http://delphi.com/about/news/media/ ].

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 liquidity support agreements with GM, its debtor-in-possession financing facility and the related accommodation agreement, and to obtain an extension of term or other amendments as necessary to maintain access to such liquidity support agreements and 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, and to consummate the Modified Plan or any subsequently filed plan of reorganization and to consummate such plan or other consensual resolution of Delphi's 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 as described in the Modified Plan as filed with the bankruptcy 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, including the risk factors in Part I. Item 1A. Risk Factors contained therein and in Part II. Item 1A. Risk Factors in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009. 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. Under the Modified Plan confirmed by the Court on July 30, 2009, holders of Delphi's common stock will receive no value.