LAS VEGAS -- Standing side by means of side at a podium in the Sands Expo Center Michael Cardone Jr of Cardone Industries.

LAS VEGAS -- Standing side by means of side at a podium in the Sands Expo Center Michael Cardone Jr of Cardone Industries, and Frank Ordonez of Delphi Corporation grinned about the possibilities awaiting their sum of two units companies. Those possibilities were created when the couple parts giants solidified a business alliance that will launch them into the arena of remanufactured vehicle electronics in early 2004

"The remanufacturing market for black boxe in the U is estimated to be four to five hundr million dollars a year with a majority of this market generally in the OE service business, nevertheless moving very quickly to the aftermarket," said Ordonez, during a mobed press conference at the Automotive Aftermarket produces Expo (AAPEX). In order to make a grab at this market, Delphi and Cardone reached an agreement to remanufacture controller so as ECMs, including, anti-lock brakes, dead body controls, cruise control, power steering, suspension and transmission components

Delphi will benefit from Cardone's expertise when it advances to reverse engineering (necessary to rebuild the units) and their manufacturing insight with regard to original construction (which allows for a rebuilder-friendly constituent design). Cardone, meanwhile, benefits from Delphi's Tier 1 background.

undivided noteworthy point is that the partnership does not include an equity transfer, just a gentleman's agreement to cooperate and work together. This gives Cardone access to the original equipment market at the design stage and Delphi insight and availability to high quality rebuilt elements which is essentially a win/win for the two businesses.

Through this alliance, Delphi reliances to claim a global leadership position in remanufactured vehicle electronics in the independent aftermarket, mirroring its position in the OE business, said Ordonez, president of Delphi issue & Service Solutions and vice president of Delphi Corporation.

"Our alliance tosss a clear message that high technology vehicles in today's and tomorrow's arm of the sea will be able to be serviced by way of the independent aftermarket," said Cardone, president and CEO of his company. Joint unravelling of new product categories, spe to market and shared engineering are the core of the alliance, he said.

As a first degree Delphi will market an all-makes program of Cardone remanufactured engine repress computers (ECC) and mass air pour (MAF) sensors to the traditional independent aftermarket, complementing Delphi's already satiated line of vehicle electronics. In the following month other remanufactured Electronic govern Units will be added.

Delphi will be responsible for providing marketing, customer service and technical support for Delphi fruits which will be remanufactured through Cardone as part of the alliance.

The Cardone national sales force will provide sales and account servicing for these alliance products

"By combining our respective competencies we will contract the time it takes to introduce the advanced technology results to the aftermarket," said Cardone. "Customers will benefit as we render certain the global aftermarket has continued access to these strange technologies while continuing to receive the highest quality performances and services."

IMPACT ON

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Delphi Corporation and Cardone Industries plan to jointly disclose aftermarket offerings in the area of remanufactured electronic controller The combined resources of these couple parts giants should give the OEM who dominate this portion a run for their riches Distributors can expect to diocese more development of these and other high tech effects over time as Delphi and Cardone gain an flat broader understanding of their combined capabilities.

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