Delphi Corp (fka DPHI)

[tradetracker]

Delphi eyes Asia for growth, plays down bankruptcy

TOKYO, Dec 13 (Reuters) - Bankrupt auto parts maker Delphi
Corp. said on Tuesday the Asia-Pacific region,
particularly business with Japanese auto makers, was key to its
future growth, playing down concerns about the impact of its
Chapter 11 filing in the United States.

"As we view our ability to grow, the Asia-Pacific region is
at the highest of our priorities because we see such tremendous
opportunity here," Chief Operating Officer Rodney O'Neal told
reporters in Tokyo.

The region accounted for $1.1 billion of Delphi's sales out
of a total $28.6 billion last year.

"Japan is at the highest of our list in terms of the ability
to penetrate," he said, noting that Japanese car makers account
for 30 percent of total global vehicle production. Delphi was
interested in growing organically as well as through strategic
partnerships to better serve Japanese auto makers, he said.

O'Neal is in Japan with Chief Executive Robert "Steve"
Miller and other top executives to meet employees and customers
who are worried about Delphi's future after it filed the biggest
bankruptcy in U.S. automotive history in October.

Miller stressed that Delphi's Chapter 11 filing in no way
affected its international operations, which he said would
continue to expand as the company prepares to raise spending on
engineering to $2 billion in 2006.

Delphi, formerly a division of General Motors Corp. ,
said its business with Japanese auto makers such as Toyota Motor
Corp. <7203.T> and Honda Motor Co. <7267.T> was mostly in North
America, with annual sales coming to less than $1 billion so
far.

By 2010, it wants to increase such sales to over $1 billion,
Choon Chon, president of Delphi's Asia-Pacific operations, said.

Regarding Delphi's negotiations with the United Auto Workers
(UAW) union over a modified wage and benefit contract, Miller
said he was prepared to negotiate "day and night" with the union
and GM, which may offer more financial support or other forms of
aid in order to avert a potentially crippling strike.

"I believe we can announce (a conclusion) during the first
quarter of 2006," Miller said.