Delphi to Build E-Steer System in Saginaw, Michigan
by Joe Miller, The Detroit News

Delhi Automotive Systems will invest $100 million to produce a new electric power-steering system in Saginaw, MI. The deal came after two years of negotiations between Delphi, and United Auto Workers union and the state Michigan, which will provide tax credits for the project.

Delphi plans to begin producing the automotive steer-by-wire system, known as "E-Steer" by early 2003. The total investment will be determined by the size and number of steering contracts Delphi is eventually awarded. The company declined to identify customers who have signed on.

Delphi's Saginaw facility employs about 6,000 workers and the latest project will preserve 500 jobs. The company's Saginaw division primarily manufactures hydraulic steering systems and front axles for front wheel-drive vehicles.

E-Steer, first introduced last year by Delphi in Europe, replaces all of the hydraulic components found in the traditional car or truck steering systems and can improve a vehicle's fuel economy. It is lighter, smaller and requires fewer parts than the traditional steering system.

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