News Release: Delphi Corp., BWI Complete Suspension and Brakes Business Sale

(Detroit, Michigan, November 2nd) – Delphi Corp of Troy, Michigan and BWIGroup of Beijing, China today completed their approximate US 100 million asset purchase, by which BWI became the new owner of former Delphi Ride Dynamics and Brakes business units, premier suppliers of automotive chassis products to OEMs in the US, Europe and Asia.

“We believe this is a good opportunity for BWI to make healthy inroads into the world’s premium automotive chassis systems market, as Delphi has over the years accumulated a wealth of technical knowledge, and we will continue what the previous owner – Delphi – established and expand on it,” declared Mr. Jianyi Fang, Chairman of the Board of directors, BWI, immediately after the signing, which took place in downtown Detroit, across from the new GM and a walking distance to Cobo Center, venue of the annual North American International Auto Show.

In his remarks after the signing, Fred Bellar III, General Director of Delphi Automotive Holdings Group, said that he is pleased to have worked with BWI in completing the deal and he believes the former Delphi Ride and Brakes will see healthy development in the hands of the new owner.

The acquisition by a group of Chinese investors was kicked into high gear when Beijing vice Mayor Mr. Zhongwen Gou visited Detroit and met with high-level executives from Delphi Corp.

Following the visit, BeijingWest Industries Co., Ltd., for BWIGroup, was formed with the blessing of Mayor Gou.

Shougang Group, Beijing’s largest employer and one of China’s largest steel makers, contributed 51% of the equity in BWI. With years of experience in overseas investment, Shougang Group has proved to be the mainstay of the Delphi chassis system acquisition. Through the acquisition, the company expects to diversify its lines of business, with steel making still at the core.

Beijing’s Fangshan District, an area southwest of Beijing famous for being the venue of the archeological discovery of the China Man, contributed 25% to become the second largest investor of the deal. Fangshan plans to build a state-of-the-art automotive parts manufacturing industry in the area. The investment enabled the district to access talents and technology for its efforts of getting a place in the fast-growing Chinese automotive parts and components markets.

The 3rd investor is Baoan Investment and Development Co., part of the Tempo Group. The company has been operating in North America for over a decade, selling aftermarket auto parts and buying technologies and equipment to boost its manufacturing operations in China. With a 24% stake, Baoan has become a major player in operating the former Delphi chassis component makers. The company sees this fully aligning with its own lines of business – making brakes, shocks, control arms and other automotive chassis parts and components.

The former Delphi Ride Dynamics and Brakes business units are headquartered in Dayton, Ohio, which has a long-standing tradition of invention, innovation and industrial development. Ride Dynamics also has an historical link to its seminal founding company, Dayton Electrical Laboratories Company, the world-renowned Delco Products. Over the years, it has developed a global manufacturing footprint with very high customer satisfaction.

“Suspension and brake systems are crucial for improving vehicle comfort, stability, safety and performance and we now have an opportunity to focus on these key features, which offer excellent value to our customers,” said Dan Warrell, a Delphi veteran of over 40 years, who has been chosen to lead the BWI Ride and Brakes business worldwide.

“My senior management team will remain intact and we will make decisions based on business requirements, “ said Mr. Warrell, adding “and we will adopt measures to make the operations more efficient and more rewarding for all stakeholders.”

He sees that the combined business of controlled dampers, passive dampers, active stabilizer bars, foundation brakes and ABS systems, etc. that constitute the product lines of the Delphi Ride and Brakes, will grow substantially with the backing and strategic vision demonstrated by the new owners.

Throughout the purchase process, BWI has engaged a number of world-class consulting firms to ensure a seamless transition. Customers have express enthusiasm that BWI will treat chassis parts and components as its core business and invest in new technology, and have approached BWI to sign new contracts.

For more information, please contact Jeff Zhao at (937) 475-0620 or jeff.zhao@bwigroup.com