Delphi Completes Eaton Switch Acquisition

Apr 02, 2001, 01:00 ET from Delphi Automotive Systems

    TROY, Mich., April 2 /PRNewswire/ -- Delphi Automotive Systems (NYSE:   DPH)
 today announced that it has purchased the Vehicle Switch/Electronics Division
 of Eaton Corp. (NYSE:   ETN) for $300 million.  The acquisition, which is
 expected to be financially accretive in its first year of ownership,
 immediately ranks Delphi among the top switch suppliers in the world, and
 positions the company to expand its switch business sales in automotive and
 other market segments.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20001019/DELPHIAS )
     "We are very excited about this addition to the Delphi team," said James
 A. Spencer, president, Delphi Packard Electric Systems and Delphi vice
 president.  "With these combined resources and customer base, Delphi Packard
 Electric is now the world's third-largest automotive switch producer and a
 market leader in mechatronic devices.  I believe that we have a winning
 combination of switch technology and electronics expertise to aggressively
 grow this segment of our business."
     Delphi announced its intent to purchase the VS/ED last month, which adds
 extensive switch technology to Delphi's portfolio and brings a solid book of
 business to Delphi's bottom line.  Together, these factors will allow Delphi
 to offer new product solutions to its global customers and the potential for
 solid gains in market share.  The acquisition also provides a platform for
 Delphi to apply its exclusive license agreement of Duraswitch(R) technology in
 the automotive industry.
     The acquired unit employs approximately 3,850 employees worldwide,
 including more than 200 engineers at manufacturing facilities in Germany,
 Spain, Poland, Mexico and Brazil, and engineering facilities in the United
 States, France and Germany.
     In conjunction with today's announcement, German native Lothar Veeser is
 named business line executive of Delphi Mechatronic Systems and will oversee
 Delphi's complete switch and mechatronic product portfolio.  Veeser, who has
 extensive international automotive engineering, management, marketing and
 sales experience, was most recently general manager of Eaton's VS/ED.
     For more information about Delphi Automotive Systems, visit Delphi's
 Virtual Press Room at www.delphiauto.com/vpr.
 
     Forward Looking Statements
     The Private Securities Litigation Reform Act of 1995 provides a safe
 harbor for forward-looking statements made by us or on our behalf.  All
 statements contained or incorporated in this release which address operating
 performance, events or developments that we expect or anticipate may occur in
 the future, including statements relating to volume growth, awarded sales
 contracts and earnings per share growth or statements expressing general
 optimism about future operating results, are forward-looking statements.
 Principal important factors, risks and uncertainties which may cause actual
 results to differ from those expressed in our forward-looking statements are:
 our ability to increase non-GM sales and achieve the labor benefits expected
 from our separation from GM, potential increases in our warranty costs, our
 ability to successfully implement our global restructuring plan, changes in
 the economic conditions or political environment in the markets in which we
 operate, financial or market declines of our customers or significant business
 partners, labor disruptions or material shortages, the level of competition in
 the automotive industry, significant downturns in the automobile production
 rate, costs relating to legal and administrative proceedings, changes in laws
 or regulations pertaining to the automotive industry, our ability to realize
 costs savings expected to offset price reductions, our ability to make pension
 and other post-retirement payments at levels anticipated by management, our
 ability to successfully exit non-performing businesses and absorb contingent
 liabilities related to divestitures, our ability to complete and integrate
 acquisitions, changes in technology and technological risks, our ability to
 protect and assert patent and other intellectual property rights, and other
 factors, risks and uncertainties discussed in our annual report on Form 10-K
 for the fiscal year ended December 31, 2000 and other filings with the
 Securities and Exchange Commission.  Delphi does not intend or assume any
 obligation to update any of these forward-looking statements.
 
 

SOURCE Delphi Automotive Systems
    TROY, Mich., April 2 /PRNewswire/ -- Delphi Automotive Systems (NYSE:   DPH)
 today announced that it has purchased the Vehicle Switch/Electronics Division
 of Eaton Corp. (NYSE:   ETN) for $300 million.  The acquisition, which is
 expected to be financially accretive in its first year of ownership,
 immediately ranks Delphi among the top switch suppliers in the world, and
 positions the company to expand its switch business sales in automotive and
 other market segments.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20001019/DELPHIAS )
     "We are very excited about this addition to the Delphi team," said James
 A. Spencer, president, Delphi Packard Electric Systems and Delphi vice
 president.  "With these combined resources and customer base, Delphi Packard
 Electric is now the world's third-largest automotive switch producer and a
 market leader in mechatronic devices.  I believe that we have a winning
 combination of switch technology and electronics expertise to aggressively
 grow this segment of our business."
     Delphi announced its intent to purchase the VS/ED last month, which adds
 extensive switch technology to Delphi's portfolio and brings a solid book of
 business to Delphi's bottom line.  Together, these factors will allow Delphi
 to offer new product solutions to its global customers and the potential for
 solid gains in market share.  The acquisition also provides a platform for
 Delphi to apply its exclusive license agreement of Duraswitch(R) technology in
 the automotive industry.
     The acquired unit employs approximately 3,850 employees worldwide,
 including more than 200 engineers at manufacturing facilities in Germany,
 Spain, Poland, Mexico and Brazil, and engineering facilities in the United
 States, France and Germany.
     In conjunction with today's announcement, German native Lothar Veeser is
 named business line executive of Delphi Mechatronic Systems and will oversee
 Delphi's complete switch and mechatronic product portfolio.  Veeser, who has
 extensive international automotive engineering, management, marketing and
 sales experience, was most recently general manager of Eaton's VS/ED.
     For more information about Delphi Automotive Systems, visit Delphi's
 Virtual Press Room at www.delphiauto.com/vpr.
 
     Forward Looking Statements
     The Private Securities Litigation Reform Act of 1995 provides a safe
 harbor for forward-looking statements made by us or on our behalf.  All
 statements contained or incorporated in this release which address operating
 performance, events or developments that we expect or anticipate may occur in
 the future, including statements relating to volume growth, awarded sales
 contracts and earnings per share growth or statements expressing general
 optimism about future operating results, are forward-looking statements.
 Principal important factors, risks and uncertainties which may cause actual
 results to differ from those expressed in our forward-looking statements are:
 our ability to increase non-GM sales and achieve the labor benefits expected
 from our separation from GM, potential increases in our warranty costs, our
 ability to successfully implement our global restructuring plan, changes in
 the economic conditions or political environment in the markets in which we
 operate, financial or market declines of our customers or significant business
 partners, labor disruptions or material shortages, the level of competition in
 the automotive industry, significant downturns in the automobile production
 rate, costs relating to legal and administrative proceedings, changes in laws
 or regulations pertaining to the automotive industry, our ability to realize
 costs savings expected to offset price reductions, our ability to make pension
 and other post-retirement payments at levels anticipated by management, our
 ability to successfully exit non-performing businesses and absorb contingent
 liabilities related to divestitures, our ability to complete and integrate
 acquisitions, changes in technology and technological risks, our ability to
 protect and assert patent and other intellectual property rights, and other
 factors, risks and uncertainties discussed in our annual report on Form 10-K
 for the fiscal year ended December 31, 2000 and other filings with the
 Securities and Exchange Commission.  Delphi does not intend or assume any
 obligation to update any of these forward-looking statements.
 
 SOURCE  Delphi Automotive Systems

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