Delphi, Orbital To Share Technology, Marketing

Autoparts Report, Sept 11, 2001

Delphi Automotive Systems and Orbital Engine Corp. said they have entered into a technical transfer and license agreement. Under the agreement Delphi has acquired rights to manufacture and sell Orbital's air assisted direct fuel injection technology as part of Delphi's complete fuel and engine management system (EMS), Delphi said.

Delphi said it expects that the combination of the expertise of the two companies will provide leverage to secure high volume production supply contracts from automotive manufacturers. This agreement also gives Delphi unprecedented access to Orbital's most up to date system and component technology.

Orbital's lean burn combustion system utilizing air assisted direct injection can achieve fuel economy savings of 12 to 20 percent, Delphi said. Both fuel economy and emissions levels for the system are superior to any competing technology, Delphi claims.

When combined with Delphi's EMS technology, Orbital and Delphi will be in a unique position to supply its customers with lean burn systems capable of meeting stringent U.S., European and Asian emissions standards using common EMS architecture and fuel system hardware, according to Delphi.

"Delphi is positioned to be a leader in lean burn spray guided direct injection gasoline systems globally," said Guy Hachey, president of Delphi's Energy & Chassis Systems division. "We expect to introduce the next generation gasoline direct injection technology in the automotive market worldwide in the shortest possible timeframe, enabling Delphi to offer its customers air assisted direct injection systems as part of its fuel injection product portfolio."

Orbital CEO Kim Schlunke said, "Delphi's size, reputation and technological expertise ensures that manufacturers using our technology will certainly creates further momentum in our automotive business and the global reach of Delphi will also fulfill Orbital's desire to link with a fuel systems partner with a presence in all major automotive markets."

The technical transfer and license agreement follows a memorandum of understanding signed between Orbital and Delphi announced on October 10, 2000 under which the parties agreed to cooperate on market development and supply of direct fuel injection systems for worldwide automotive applications.

Orbital said it already has ongoing technical programs with 10 major automotive manufacturers in Europe, United States and Asia.