Decontenting not a "show-stopper" says Delphi President

DETROIT -Dow Jones is reporting that auto supplier Delphi Corp. President and Chief Executive J.T. Battenburg on Tuesday attempted to exorcise investor fears over auto-industry "decontenting" plans and issues with the company's pension plan.

"Our team seems to spend a lot of time addressing the same issues - fighting the monsters under the bed," he said.

Issues over decontenting - which occurs when auto makers turn some formerly standard items into optional items - have struck Delphi. Delphi's largest customer, General Motors Corp. (GM), has said it will use decontenting as a way to lower costs on its cars.

"Any reports of imminent problems for Delphi because of decontenting are flat out inaccurate," Battenburg said.

The company expects decontenting will be limited to four areas: premium audio systems, optional anti-lock braking systems, side-impact airbag sensors and premium steering systems. The company still expects to see revenue from GM in the $17 billion range in 2003, Battenburg said.

The process may in fact be good for Delphi, Battenburg said, because it will allow GM to sell more cars.

"While decontenting certainly got our attention, it is not the show-stopper some thought it would be," he said.