to acquire Delphi’s thermal business.

Delphi believe this is the right step forward and are excited about the opportunities it will provide to our customers.

By combining Delphi Thermal and MAHLE’s industry expertise, capabilities and resources, the new company will have the opportunity to play a much larger role in the thermal industry, accelerate growth and create greater long-term value for the business and its customers. Delphi Thermal will move from being the fifth largest company to become part of a leading systems player in the thermal industry with MAHLE.

The sale will consist of a two-step process. MAHLE will close on Delphi’s wholly-owned operations in the 3rd quarter of 2015. Delphi and MAHLE also signed a separate letter of intent to sell Delphi’s stake in Shanghai Delphi Automotive Air-Conditioning System Co., Ltd.; this transaction is expected to close once all Chinese regulatory conditions are satisfied and necessary approvals are obtained in the course of 2016. Delphi are confident both transactions will be completed in the timeliest manner possible. Until the transaction closes, it will be business as usual at Delphi and Delphi Thermal. Both Delphi Thermal and MAHLE will continue to operate separately.

Delphi Product & Service Solutions (DPSS), Delphi Automotive’s aftermarket division, will continue to offer its complete aftermarket thermal product portfolio and its customers will see no interruption in products and service. Running the business and executing flawlessly for their customers remains their top priority.

DPSS remains committed to the aftermarket and will continue to invest in and grow their core product categories on engine and fuel management, diagnostics, diesel, thermal, braking, and steering & suspension.