Delphi Announces Plans to Implement $89.3 Million Award From U.S. Department of Energy

Award Will Support Expansion of Engineering Capabilities in Manufacture of Advanced “Green” Technologies; Vacant Manufacturing Site in Kokomo, Ind., Selected for Production of Power Electronics Components for Global Customers; Initial Products to Be Built for Allison Transmission in Partnership of Two Indiana Technology Leaders

Federal, state and local leaders joined with Delphi Electronics & Safety President Jeff Owens today to announce plans to implement an $89.3 million award from the Department of Energy (DOE) that will support expansion of Delphi’s Power Electronics engineering capabilities as well as the establishment of a new manufacturing operation in Kokomo.

The award, through the American Recovery and Reinvestment Act of 2009, was announced by President Barack Obama during a visit to Indiana in August. With an $89.3 million match by Delphi, this action will represent a three-year investment of up to $178.6 million to advance the development of low-cost manufacturing of electric drive vehicles (EDV) in the United States.

Owens was joined in making the announcement by Indiana Gov. Mitch Daniels, U.S. Rep. Joe Donnelly and Kokomo Mayor Greg Goodnight.

“Electric drive vehicles hold the promise of meeting two critical government and industry goals — reducing dependence on petroleum and reducing greenhouse gas emissions,” Owens said. “Delphi has a long history of successfully developing and commercializing automotive electronics. With this DOE partnership, we will apply our proven expertise to develop technologies and processes that will help lower the cost of electric drive vehicles and make them more attractive to a broad range of consumers. We are pleased to have the government and industry support evident here today.”

In addition to the DOE award, Delphi has been offered support from the Indiana Economic Development Corporation through performance-based tax credits and training grants. The company also is finalizing a property tax abatement application with the City of Kokomo.

Over the next five years, Delphi anticipates adding about 190 employees as a result of government and business awards to Delphi’s power electronics business line. Delphi expects to add about 95 engineers at its Kokomo technology center over the next two years, increasing engineering employment in the power electronics unit to more than 300. In the next three years, Delphi projects about 40 people will be hired at a Kokomo facility where power electronics products will be manufactured with employment at that facility moving to a total of about 95 by 2014.

Delphi will establish its manufacturing operation in an existing facility at 1501 E. Road 200 North (Morgan Street). The company will lease the 90,000-square-foot building, reusing vacant manufacturing space originally built for a manufacturer of metals for the orthopedics industry in northern Indiana.

Among the first products expected to be manufactured at the new facility will be power electronics components and systems for Allison Transmission, a leading supplier of commercial-duty fully automatic transmissions for both on- and off-highway vehicles, and of hybrid propulsion systems for on-highway transit and coach vehicles.
Allison, headquartered in Indianapolis, announced earlier this month that it had entered into a long-term business agreement with Delphi to advance the production of medium-duty hybrid trucks in the United States. Under terms of the agreement, Delphi will supply Allison with key hybrid drive system electronic components and energy storage systems to be used in its hybrid propulsion systems for medium-duty commercial trucks and buses.

“With this agreement, two Indiana companies with great technologies are combining their world-class expertise to serve the emerging global hybrid and electric vehicle market,” Owens said. “We are excited to partner with Allison in bringing to Indiana new manufacturing jobs in advanced energy technologies that will have global demand.”

Seeds for this partnership were planted more than two years ago when Allison and Delphi leaders met at the organizational meeting for the Energy Systems Network. ESN has grown into a partnership of private firms, research institutions and public agencies in Indiana focused on bringing new energy technologies to market by leveraging the state’s strong manufacturing sector, R&D capabilities and heritage of engineering advanced energy systems.

Eric Dickerson, director of Public Relations and Communications, Allison Transmission; Ralph Nine, DOE project manager; and Paul Mitchell, president and CEO of ESN, also joined in Friday’s announcement.

Delphi is the only high-volume automotive power electronics company that designs and manufactures in the United States for the global EDV market. The company provides powertrain electronics for several hybrid electric vehicle manufacturers. 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 integrated electronic power management systems as well as battery energy storage sub-systems, inverters and DC/DC (direct current to direct current) converters, chargers and power controllers that can be used in mild hybrids, full hybrids, electric vehicles and plug-in electric vehicles.

Delphi’s history of innovation in power electronics dates back to the early 1990s and the development of GM’s groundbreaking EV1. With significant investment over the last 20 years in its power electronics expertise and facilities in Kokomo, Delphi has nurtured that automotive electronics technology legacy and has moved it into the volume production phase. Since 2000, Delphi has been issued more than 100 patents in power electronics and advanced energy systems.

Delphi Corp. is a leading global supplier of electronics and technologies for autos, commercial and other vehicles. With more than 100,000 employees at 270 locations and 24 engineering centers in 32 countries, Delphi brings the power of innovation to a wide range of products and services that add value for car makers and car drivers alike. Delphi delivers real-world innovations that make products smarter and safer as well as more powerful and more efficient. For more information on Delphi, visit www.delphi.com.