Delphi Achieves Record $3.2 Billion in Commercial Vehicle Business Bookings in '03

Delphi Corporation achieved a record $3.2 billion in new commercial vehicle business bookings during 2003, officials said today. Revenue from the new business will be earned over an average of five years, with details of the bookings to be kept confidential at the customers' request. "We are accelerating our commercial vehicle growth, particularly in Europe and Asia-Pacific," said Brad Maggart, global director of Delphi Commercial Vehicle Systems. "Our two-pronged strategy of leveraging automotive technologies and developing products specifically for the commercial vehicle market allowed us to almost triple our 2002 booking total of $1.1 billion. Last year's results clearly show that our customers are seeing the value of Delphi's technologies, global engineering capabilities and extensive manufacturing presence." Much of the new business is with Delphi's engine management systems, along with audio, safety, climate control and electrical/electronic distribution systems, according to Maggart. While every major region saw a business increase during the year, a majority of the growth came from Asia-Pacific and Europe. Delphi is investing in commercial vehicle growth in Europe by creating a new Customer Technology Center in Wuppertal, Germany. The new center will enable Delphi to continue to develop highly integrated solutions for the commercial vehicle segment. This facility will also be one of Delphi's centers of expertise for commercial vehicle electrical/electronic distribution systems, safety, entertainment and mobile communications. Delphi is also growing its business in Asia. Last October, Delphi announced it was awarded a contract in Japan by Nissan Diesel Motor Co. to supply diesel engine management systems for heavy-duty truck applications. The system will include Delphi's new diesel E3 Electronic Unit Injector along with the Electronic Control Unit and engine management software. "Delphi will use its technical expertise and industry knowledge to continue to help address the global concerns of the commercial vehicle customer including increased fuel economy and safety and decreased emissions and operating costs," Maggart said. The company sees an industry focus on mobile productivity along with advanced safety and powertrain systems as growth factors for additional Delphi business this year, Maggart said. Delphi has seen a steady increase in its commercial vehicle business in the last several years. During 2002, the company booked $1.1 billion new business, up from $900 million in 2001. Sales for the commercial vehicle business in 2003 were $898 million, up 28.3 percent year-over-year.