##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, DC 20549-1004


FORM 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  |  | For the quarterly period ended September 30, 2005                                           
|  |  | OR                                                                                          
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  |  | For the transition period
    from                   to                   .                 

Commission file No. 1-14787


DELPHI CORPORATION




|                                                                   |  |                                     
|------------------------------------------------------------------ |  | ------------------------------------
|Delaware                                                           |  | 38-3430473                          
|(State or other jurisdiction of
    incorporation or organization) |  | (IRS employer identification number)
|                                                                  
|5725 Delphi Drive, Troy, Michigan                                  |  | 48098                               
|(Address of principal executive offices)                           |  | (Zip code)                          

(248) 813-2000




þ o


þ o


o þ












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DELPHI CORPORATION


INDEX


|                                                                 |  |                                                                                                               |    |      |    | 
|---------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                                 |  |                                                                                                               |    | Page |   
|                                                                 |  |                                                                                                               |    |      |   
|Part I  Financial
    Information                              
|Item 1.                                                          |  | Financial Statements (Unaudited)                                                                              |    |      |    | 
|                                                                 |  | Consolidated Statements of Operations for
    the Three and Nine Months Ended September 30, 2005 and
    2004 |    |      | 3  | 
|                                                                 |  | Consolidated Balance Sheets at
    September 30, 2005 and December 31, 2004                                   |    |      | 4  | 
|                                                                 |  | Consolidated Statements of Cash Flows for
    the Nine Months Ended September 30, 2005 and 2004               |    |      | 5  | 
|                                                                 |  | Notes to Consolidated Financial
    Statements                                                                |    |      | 6  | 
|Item 2.                                                          |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                     |    |      | 24 | 
|Item 3.                                                          |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                |    |      | 47 | 
|Item 4.                                                          |  | Controls and Procedures                                                                                       |    |      | 47 | 
|Part II  Other
    Information                                 
|Item 1.                                                          |  | Legal Proceedings                                                                                             |    |      | 53 | 
|Item 2.                                                          |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                               |    |      | 53 | 
|Item 3.                                                          |  | Defaults Upon Senior Securities                                                                               |    |      | 53 | 
|Item 5.                                                          |  | Other Information                                                                                             |    |      | 54 | 
|Item 6.                                                          |  | Exhibits                                                                                                      |    |      | 54 | 
|Signature                                                        |  |                                                                                                               | 55 |     
|Certification Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a)
|Certification Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a)
|Certification Pursuant to 18 U.S.C. Section 1350                
|Certification Pursuant to 18 U.S.C. Section 1350                



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PART I. FINANCIAL INFORMATION





ITEM 1. FINANCIAL STATEMENTS


DELPHI CORPORATION





CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |        |        |   |       |        |        | 
|--------------------------------------------------------------------------- | ------------------------------------------- | --------------------------------------- | ----- | ----- | ----------------- | - | ----- | ----- | ----- | - | ------ | ------ | ------ | - | ----- | ------ | ------ | 
|                                                                            |                                             | Three Months Ended                      |       |       | Nine Months Ended |  
|                                                                            |                                             | September 30,                           |       |       | September 30,     |  
|                                                                            |                                             |                                         |       |       |                   |  
|                                                                            |                                             | 2005                                    |       |       | 2004              |   |       | 2005  |       |   | 2004   |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|                                                                            |                                             | (in millions, except per share amounts) |      
|Net sales:                                                                  |                                             |                                         |       |       |                   |   |       |       |       |   |        |        |        |   |       |       
|                                                                            | General Motors and affiliates               |                                         | $     | 2,954 |                   |   | $     | 3,496 |       |   | $      | 9,760  |        |   | $     | 11,818 |       
|                                                                            | Other customers                             |                                         |       | 3,329 |                   |   |       | 3,146 |       |   |        | 10,408 |        |   |       | 9,771  |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|                                                                            |                                             | Total net sales                         |       |       | 6,283             |   |       |       | 6,642 |   |        |        | 20,168 |   |       |        | 21,589 | 
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|Operating expenses:                                                         |                                             |                                         |       |       |                   |   |       |       |       |   |        |        |        |   |       |       
|                                                                            | Cost of sales, excluding items listed below |                                         |       | 6,221 |                   |   |       | 6,074 |       |   |        | 19,327 |        |   |       | 19,315 |       
|                                                                            | Selling, general and administrative         |                                         |       | 424   |                   |   |       | 383   |       |   |        | 1,230  |        |   |       | 1,171  |       
|                                                                            | Depreciation and amortization               |                                         |       | 331   |                   |   |       | 293   |       |   |        | 912    |        |   |       | 858    |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|                                                                            |                                             | Total operating expenses                |       |       | 6,976             |   |       |       | 6,750 |   |        |        | 21,469 |   |       |        | 21,344 | 
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|Operating (loss) income                                                     |                                             |                                         | (693  | )     |                   |   | (108  | )     |       |   | (1,301 | )      |        |   | 245   |       
|                                                                            | Interest expense                            |                                         |       | (103  | )                 |   |       | (58   | )     |   |        | (224   | )      |   |       | (175   | )     
|                                                                            | Other income (expense), net                 |                                         |       | 17    |                   |   |       | 8     |       |   |        | 44     |        |   |       | (3     | )     
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|(Loss) income before income taxes, minority interest, and equity
    income |                                             |                                         | (779  | )     |                   |   | (158  | )     |       |   | (1,481 | )      |        |   | 67    |       
|                                                                            | Income tax (expense) benefit                |                                         |       | (8    | )                 |   |       | 33    |       |   |        | (65    | )      |   |       | (7     | )     
|                                                                            | Minority interest, net of tax               |                                         |       | (11   | )                 |   |       | (10   | )     |   |        | (27    | )      |   |       | (36    | )     
|                                                                            | Equity income                               |                                         |       | 10    |                   |   |       | 16    |       |   |        | 44     |        |   |       | 63     |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|Net (loss) income                                                           |                                             | $                                       | (788  | )     |                   | $ | (119  | )     |       | $ | (1,529 | )      |        | $ | 87    |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|(Loss) earnings per share
    Basic and diluted                             |                                             | $                                       | (1.40 | )     |                   | $ | (0.21 | )     |       | $ | (2.73  | )      |        | $ | 0.16  |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       
|Dividends declared per share                                                |                                             | $                                       | 0.000 |       |                   | $ | 0.070 |       |       | $ | 0.045  |        |        | $ | 0.210 |       
|                                                                            |                                             |                                         |       |       |                   |   |       |       |       |   |        |       



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DELPHI CORPORATION





CONSOLIDATED BALANCE SHEETS


|                                            |                                                                                                                |                                                   |                             |        |              |        |        |        |       |        |  
|------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- | --------------------------- | ------ | ------------ | ------ | ------ | ------ | ----- | ------ | -
|                                            |                                                                                                                | September 30,                                     |                             |        |             
|                                            |                                                                                                                | 2005                                              |                             |        | December 31, |       
|                                            |                                                                                                                | (Unaudited)                                       |                             |        | 2004         |       
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                | (in millions)                                     |                            
|ASSETS                                     
|Current assets:                             |                                                                                                                |                                                   |                             |        |              |        |        |       
|                                            | Cash and cash equivalents                                                                                      |                                                   | $                           | 1,652  |              |        | $      | 950    |      
|                                            | Restricted cash                                                                                                |                                                   |                             | 13     |              |        |        | 14     |      
|                                            | Accounts receivable, net:                                                                                      |                                                   |                             |        |              |        |        |        |      
|                                            |                                                                                                                | General Motors and affiliates                     |                             |        | 2,367        |        |        |        | 2,182 |       
|                                            |                                                                                                                | Other                                             |                             |        | 2,646        |        |        |        | 1,476 |       
|                                            | Retained interest in receivables, net                                                                          |                                                   |                             |       |              |        |        | 726    |      
|                                            | Inventories, net:                                                                                              |                                                   |                             |        |              |        |        |        |      
|                                            |                                                                                                                | Productive material, work-in-process and supplies |                             |        | 1,320        |        |        |        | 1,413 |       
|                                            |                                                                                                                | Finished goods                                    |                             |        | 559          |        |        |        | 545   |       
|                                            | Deferred income taxes                                                                                          |                                                   |                             | 35     |              |        |        | 39     |      
|                                            | Prepaid expenses and other                                                                                     |                                                   |                             | 384    |              |        |        | 354    |      
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                |                                                   | Total current assets        |        |              | 8,976  |        |        |       | 7,699  |  
|Long-term assets:                           |                                                                                                                |                                                   |                             |        |              |        |        |       
|                                            | Property, net                                                                                                  |                                                   |                             | 5,358  |              |        |        | 5,946  |      
|                                            | Deferred income taxes                                                                                          |                                                   |                             | 107    |              |        |        | 130    |      
|                                            | Goodwill                                                                                                       |                                                   |                             | 751    |              |        |        | 798    |      
|                                            | Other intangible assets                                                                                        |                                                   |                             | 59     |              |        |        | 80     |      
|                                            | Pension intangible assets                                                                                      |                                                   |                             | 1,044  |              |        |        | 1,044  |      
|                                            | Other                                                                                                          |                                                   |                             | 915    |              |        |        | 896    |      
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                |                                                   | Total assets                |        | $            | 17,210 |        |        | $     | 16,593 |  
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                           
|LIABILITIES AND STOCKHOLDERS DEFICIT      
|Current liabilities:                        |                                                                                                                |                                                   |                             |        |              |        |        |       
|                                            | Notes payable, current portion of long-term debt and debt in
    default                                       |                                                   | $                           | 5,301  |              |        | $      | 507    |      
|                                            | Accounts payable                                                                                               |                                                   |                             | 3,212  |              |        |        | 3,504  |      
|                                            | Accrued liabilities                                                                                            |                                                   |                             | 3,086  |              |        |        | 2,694  |      
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                |                                                   | Total current liabilities   |        |              | 11,599 |        |        |       | 6,705  |  
|Long-term liabilities:                      |                                                                                                                |                                                   |                             |        |              |        |        |       
|                                            | Long-term debt                                                                                                 |                                                   |                             | 67     |              |        |        | 2,061  |      
|                                            | Junior subordinated notes due to Delphi Trust I and II                                                         |                                                   |                             |       |              |        |        | 412    |      
|                                            | Pension benefits                                                                                               |                                                   |                             | 2,910  |              |        |        | 3,523  |      
|                                            | Postretirement benefits other than pensions                                                                    |                                                   |                             | 6,767  |              |        |        | 6,297  |      
|                                            | Other                                                                                                          |                                                   |                             | 1,020  |              |        |        | 936    |      
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                |                                                   | Total liabilities           |        |              | 22,363 |        |        |       | 19,934 |  
|                                            |                                                                                                                |                                                   |                             |        |              |       
|Commitments and contingencies (Note 12)     |                                                                                                                |                                                   |                             |        |              |        |        |       
|Minority interest                           |                                                                                                                |                                                   | 161                         |        |              |        | 198    |       
|Stockholders deficit:                      |                                                                                                                |                                                   |                             |        |              |        |        |       
|                                            | Common stock, $0.01 par value, 1,350 million shares
    authorized, 565 million shares issued in 2005 and 2004 |                                                   |                             | 6      |              |        |        | 6      |      
|                                            | Additional paid-in capital                                                                                     |                                                   |                             | 2,669  |              |        |        | 2,661  |      
|                                            | Accumulated deficit                                                                                            |                                                   |                             | (5,467 | )            |        |        | (3,913 | )    
|                                            | Minimum pension liability                                                                                      |                                                   |                             | (2,458 | )            |        |        | (2,469 | )    
|                                            | Accumulated other comprehensive (loss) income, excluding minimum
    pension liability                         |                                                   |                             | (12    | )            |        |        | 237    |      
|                                            | Treasury stock, at cost (3.2 million and 3.8 million
    shares in 2005 and
    2004, respectively)            |                                                   |                             | (52    | )            |        |        | (61    | )    
|                                            |                                                                                                                |                                                   |                             |        |              |       
|                                            |                                                                                                                |                                                   | Total stockholders deficit |        |              | (5,314 | )      |        |       | (3,539 | )
|                                            |                                                                                                                |                                                   |                             |        |              |       
|Total liabilities and stockholders deficit |                                                                                                                | $                                                 | 17,210                      |        |              | $      | 16,593 |       
|                                            |                                                                                                                |                                                   |                             |        |              |       



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DELPHI CORPORATION





CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


|                                      |                                                                                                        |                                                                |                                                     |        |       |       |   |      |       |      |  
|------------------------------------- | ------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------- | --------------------------------------------------- | ------ | ----- | ----- | - | ---- | ----- | ---- | -
|                                      |                                                                                                        | Nine Months Ended                                              |                                                    
|                                      |                                                                                                        | September 30,                                                  |                                                    
|                                      |                                                                                                        |                                                                |                                                    
|                                      |                                                                                                        | 2005                                                           |                                                     |        | 2004  |      
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      |                                                                                                        | (in millions)                                                  |                                                    
|Cash flows from operating activities: |                                                                                                        |                                                                |                                                     |        |       |       |   |     
|                                      | Net (loss) income                                                                                      |                                                                | $                                                   | (1,529 | )     |       | $ | 87   |      
|                                      | Adjustments to reconcile net (loss) income to net cash (used in)
    provided by operating activities: |                                                                |                                                     |        |       |       |   |      |      
|                                      |                                                                                                        | Depreciation and amortization                                  |                                                     |        | 912   |       |   |      | 858   |     
|                                      |                                                                                                        | Deferred income taxes                                          |                                                     |        | 19    |       |   |      | (140  | )   
|                                      |                                                                                                        | Employee and product line charges                              |                                                     |        |      |       |   |      | 79    |     
|                                      |                                                                                                        | Pension and other postretirement benefit expenses              |                                                     |        | 1,149 |       |   |      | 1,059 |     
|                                      |                                                                                                        | Equity income                                                  |                                                     |        | (44   | )     |   |      | (63   | )   
|                                      | Changes in operating assets and liabilities:                                                           |                                                                |                                                     |        |       |       |   |      |      
|                                      |                                                                                                        | Accounts receivable and retained interests in receivables, net |                                                     |        | (183  | )     |   |      | (319  | )   
|                                      |                                                                                                        | Inventories, net                                               |                                                     |        | 21    |       |   |      | (146  | )   
|                                      |                                                                                                        | Prepaid expenses and other                                     |                                                     |        | 48    |       |   |      | 56    |     
|                                      |                                                                                                        | Accounts payable                                               |                                                     |        | (267  | )     |   |      | 277   |     
|                                      |                                                                                                        | Employee and product line obligations                          |                                                     |        | (61   | )     |   |      | (261  | )   
|                                      |                                                                                                        | Accrued and other long-term liabilities                        |                                                     |        | 162   |       |   |      | 37    |     
|                                      |                                                                                                        | Pension contributions and benefit payments                     |                                                     |        | (680  | )     |   |      | (655  | )   
|                                      |                                                                                                        | Other postretirement benefit payments                          |                                                     |        | (138  | )     |   |      | (122  | )   
|                                      |                                                                                                        | Other                                                          |                                                     |        | (18   | )     |   |      | 80    |     
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      |                                                                                                        |                                                                | Net cash (used in) provided by operating activities |        |       | (609  | ) |      |       | 827  |  
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|Cash flows from investing activities: |                                                                                                        |                                                                |                                                     |        |       |       |   |     
|                                      | Capital expenditures                                                                                   |                                                                |                                                     | (792   | )     |       |   | (633 | )    
|                                      | Proceeds from sale of property                                                                         |                                                                |                                                     | 49     |       |       |   | 17   |      
|                                      | Cost of acquisition, net of cash acquired                                                              |                                                                |                                                     |       |       |       |   | (17  | )    
|                                      | Proceeds from divestitures of product lines and joint ventures,
    net of cash given                  |                                                                |                                                     | 245    |       |       |   |     |      
|                                      | Other                                                                                                  |                                                                |                                                     | 101    |       |       |   | 35   |      
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      |                                                                                                        |                                                                | Net cash used in investing activities               |        |       | (397  | ) |      |       | (598 | )
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|Cash flows from financing activities: |                                                                                                        |                                                                |                                                     |        |       |       |   |     
|                                      | Repayment of debt securities                                                                           |                                                                |                                                     |       |       |       |   | (500 | )    
|                                      | Proceeds from term loan facility, net                                                                  |                                                                |                                                     | 983    |       |       |   |     |      
|                                      | Repayments of borrowings under term loan facility                                                      |                                                                |                                                     | (12    | )     |       |   |     |      
|                                      | Proceeds from revolving credit facility, net                                                           |                                                                |                                                     | 1,484  |       |       |   |     |      
|                                      | Net (repayments of) proceeds from borrowings under other debt                                          |                                                                |                                                     | (601   | )     |       |   | 438  |      
|                                      | Dividend payments                                                                                      |                                                                |                                                     | (64    | )     |       |   | (118 | )    
|                                      | Issuances of treasury stock                                                                            |                                                                |                                                     |       |       |       |   | 2    |      
|                                      | Other                                                                                                  |                                                                |                                                     | (50    | )     |       |   | (22  | )    
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      |                                                                                                        |                                                                | Net cash provided by (used in) financing activities |        |       | 1,740 |   |      |       | (200 | )
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      | Effect of exchange rate fluctuations on cash and cash equivalents                                      |                                                                |                                                     | (32    | )     |       |   | (4   | )    
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      | Increase in cash and cash equivalents                                                                  |                                                                |                                                     | 702    |       |       |   | 25   |      
|                                      | Cash and cash equivalents at beginning of period                                                       |                                                                |                                                     | 950    |       |       |   | 879  |      
|                                      |                                                                                                        |                                                                |                                                     |        |       |      
|                                      | Cash and cash equivalents at end of period                                                             |                                                                | $                                                   | 1,652  |       |       | $ | 904  |      
|                                      |                                                                                                        |                                                                |                                                     |        |       |      



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DELPHI CORPORATION





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)




|   |                      
|-- | ---------------------
|1. | BASIS OF PRESENTATION

General




Bankruptcy Filing




Earnings Per Share


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|                                    |  |                     |         |  |                     |  |         |      |  |  |         |  |  |  |         | 
|----------------------------------- |  | ------------------- | ------- |  | ------------------- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|                                    |  | Three Months        |         |  | Nine Months         | 
|                                    |  | Ended September 30, |         |  | Ended September 30, | 
|                                    |  |                     |         |  |                     | 
|                                    |  | 2005                |         |  | 2004                |  |         | 2005 |  |  | 2004    | 
|                                    |  |                     |         |  |                     |  |         |      |  |  |         | 
|                                    |  | (in thousands)      |        
|Weighted average shares outstanding |  |                     | 561,702 |  |                     |  | 561,188 |      |  |  | 559,462 |  |  |  | 560,808 | 
|Effect of dilutive securities       |  |                     |        |  |                     |  |        |      |  |  |        |  |  |  | 2,009   | 
|                                    |  |                     |         |  |                     |  |         |      |  |  |         | 
|Diluted shares outstanding          |  |                     | 561,702 |  |                     |  | 561,188 |      |  |  | 559,462 |  |  |  | 562,817 | 
|                                    |  |                     |         |  |                     |  |         |      |  |  |         | 



|                         |  |                |        |  |               |  |        |      |  |  |        |  |  |  |        | 
|------------------------ |  | -------------- | ------ |  | ------------- |  | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|                         |  | Three Months   |        |  | Nine Months   | 
|                         |  | Ended          |        |  | Ended         | 
|                         |  | September 30,  |        |  | September 30, | 
|                         |  |                |        |  |               | 
|                         |  | 2005           |        |  | 2004          |  |        | 2005 |  |  | 2004   | 
|                         |  |                |        |  |               |  |        |      |  |  |        | 
|                         |  | (in thousands) |       
|Anti-dilutive securities |  |                | 85,858 |  |               |  | 91,414 |      |  |  | 85,737 |  |  |  | 72,546 | 
|                         |  |                |        |  |               |  |        |      |  |  |        | 



Stock-Based Compensation




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|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |       |   |   |     |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | --------------------------------------- | ---- | ----- | ------------- | - | ---- | ----- | - | - | ------ | ----- | - | - | --- | ---- | 
|                                                                                                                                            |                                 | Three Months                            |      |       | Nine Months   |  
|                                                                                                                                            |                                 | Ended                                   |      |       | Ended         |  
|                                                                                                                                            |                                 | September 30,                           |      |       | September 30, |  
|                                                                                                                                            |                                 |                                         |      |       |               |  
|                                                                                                                                            |                                 | 2005                                    |      |       | 2004          |   |      | 2005  |   |   | 2004   |      
|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |      
|                                                                                                                                            |                                 | (in millions, except per share amounts) |     
|Net (loss) income, as reported                                                                                                              |                                 | $                                       | (788 | )     |               | $ | (119 | )     |   | $ | (1,529 | )     |   | $ | 87  |     
|Add: Stock-based compensation expense recognized, net of related
    tax effects                                                            |                                 |                                         | 5    |       |               |   | 3    |       |   |   | 18     |       |   |   | 8   |     
|Less: Total stock-based employee compensation expense determined
    under fair value method for all awards, net of related tax
    effects |                                 |                                         | (9   | )     |               |   | (7   | )     |   |   | (28    | )     |   |   | (17 | )   
|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |      
|Pro forma net (loss) income                                                                                                                 |                                 | $                                       | (792 | )     |               | $ | (123 | )     |   | $ | (1,539 | )     |   | $ | 78  |     
|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |      
|(Loss) earnings per share:                                                                                                                  |                                 |                                         |      |       |               |   |      |       |   |   |        |       |   |   |     |     
|                                                                                                                                            | Basic and diluted  as reported |                                         | $    | (1.40 | )             |   | $    | (0.21 | ) |   | $      | (2.73 | ) |   | $   | 0.16 | 
|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |      
|                                                                                                                                            | Basic and diluted  pro forma   |                                         | $    | (1.41 | )             |   | $    | (0.22 | ) |   | $      | (2.75 | ) |   | $   | 0.14 | 
|                                                                                                                                            |                                 |                                         |      |       |               |   |      |       |   |   |        |      



Retention Payments


Key Employee Compensation Program


Taxes


8



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##### Table of Contents



Inventories


Special Tools


Postemployment Benefits


Reclassifications




|   |                                    
|-- | -----------------------------------
|2. | EMPLOYEE AND PRODUCT LINE LIABILITY





9



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|                                    |                                            |               |     |     |       |   |    |       |   |   |     |     |     
|----------------------------------- | ------------------------------------------ | ------------- | --- | --- | ----- | - | -- | ----- | - | - | --- | --- | ----
|                                    |                                            | Employee      |     |     | Exit  |   |    |      
|Employee and Product Line Liability |                                            | Costs         |     |     | Costs |   |    | Total |  
|                                    |                                            |               |     |     |       |   |    |       |  
|                                    |                                            | (in millions) |    
|Balance at January 1, 2005          |                                            | $             | 124 |     |       | $ | 16 |       |   | $ | 140 |    
|                                    | Usage during the first nine months of 2005 |               |     | (57 | )     |   |    | (4    | ) |   |     | (61 | )   
|                                    | Transfer to postemployment benefits        |               |     | (61 | )     |   |    |      |   |   |     | (61 | )(a)
|                                    |                                            |               |     |     |       |   |    |       |  
|Balance at September 30, 2005       |                                            | $             | 6   |     |       | $ | 12 |       |   | $ | 18  | (b)
|                                    |                                            |               |     |     |       |   |    |       |  






|    |                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | $61 million of contractual postemployment liabilities
    associated with other than temporarily idled employees
    transferred to accrued liabilities and other long-term
    liabilities in the accompanying consolidated balance sheet. (See
    Note 1, Basis of Presentation)
|   
|(b) | Included in accrued liabilities in the accompanying consolidated
    balance sheet.                                                                                                                                                                                                





|   |                              
|-- | -----------------------------
|3. | ACQUISITIONS AND DIVESTITURES







10



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##### Table of Contents





|   |                     
|-- | --------------------
|4. | ASSET SECURITIZATION



| |             
| | ------------
| | U.S. Program









11



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| |                 
| | ----------------
| | European Program








|   |         
|-- | --------
|5. | PROPERTY







|   |           
|-- | ----------
|6. | WARRANTIES



12



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|                                     |                                                                           |               |     |      |      |   |     |     |  
|------------------------------------ | ------------------------------------------------------------------------- | ------------- | --- | ---- | ---- | - | --- | --- | -
|                                     |                                                                           | September 30, |    
|                                     |                                                                           |               |    
|                                     |                                                                           | 2005          |     |      | 2004 |  
|                                     |                                                                           |               |     |      |      |  
|                                     |                                                                           | (in millions) |    
|Accrual balance at beginning of year |                                                                           | $             | 274 |      |      | $ | 258 |    
|                                     | Provision for estimated warranties accrued during the period              |               |     | 110  |      |   |     | 78  |  
|                                     | Accruals for pre-existing warranties (including changes in
    estimates) |               |     | 16   |      |   |     | 1   |  
|                                     | Settlements made during the period (in cash or in kind)                   |               |     | (124 | )    |   |     | (80 | )
|                                     | Foreign currency translation                                              |               |     | (7   | )    |   |     | 1   |  
|                                     |                                                                           |               |     |      |      |  
|Accrual balance at end of period     |                                                                           | $             | 269 |      |      | $ | 258 |    
|                                     |                                                                           |               |     |      |      |  





|   |     
|-- | ----
|7. | DEBT











13



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|   |                                          
|-- | -----------------------------------------
|8. | PENSION AND OTHER POSTRETIREMENT BENEFITS







|                                   |                           |                                  |      |       |                                 |   |      |          |       |   |                |     |  |      |     |     |      |   |      |      |  |   |      |     |  |   |     |     |  |   |     |     | 
|---------------------------------- | ------------------------- | -------------------------------- | ---- | ----- | ------------------------------- | - | ---- | -------- | ----- | - | -------------- | --- |  | ---- | --- | --- | ---- | - | ---- | ---- |  | - | ---- | --- |  | - | --- | --- |  | - | --- | --- | 
|                                   |                           |                                  |      | Other |                                 |   |      |          | Other |  
|                                   |                           | Pension                          |      |       | Postretirement                  |   |      | Pension  |       |   | Postretirement |    
|                                   |                           | Benefits                         |      |       | Benefits                        |   |      | Benefits |       |   | Benefits       |    
|                                   |                           |                                  |      |       |                                 |   |      |          |       |   |                |    
|                                   |                           | Three Months Ended September 30, |      |       | Nine Months Ended September 30, |  
|                                   |                           |                                  |      |       |                                 |  
|                                   |                           | 2005                             |      |       | 2004                            |   |      | 2005     |       |   | 2004           |     |  | 2005 |     |     | 2004 |   |      | 2005 |  |   | 2004 |    
|                                   |                           |                                  |      |       |                                 |   |      |          |       |   |                |     |  |      |     |     |      |   |      |      |  |   |      |    
|                                   |                           | (in millions)                    |     
|Service cost                       |                           | $                                | 73   |       |                                 | $ | 71   |          |       | $ | 44             |     |  | $    | 43  |     |      | $ | 219  |      |  | $ | 213  |     |  | $ | 134 |     |  | $ | 132 |    
|Interest cost                      |                           |                                  | 181  |       |                                 |   | 175  |          |       |   | 135            |     |  |      | 123 |     |      |   | 543  |      |  |   | 524  |     |  |   | 406 |     |  |   | 374 |    
|Expected return on plan assets     |                           |                                  | (197 | )     |                                 |   | (181 | )        |       |   |               |     |  |      |    |     |      |   | (591 | )    |  |   | (542 | )   |  |   |    |     |  |   |    |    
|Amortization of prior service cost |                           |                                  | 35   |       |                                 |   | 34   |          |       |   | (14            | )   |  |      | (2  | )   |      |   | 105  |      |  |   | 104  |     |  |   | (42 | )   |  |   | (4  | )  
|Amortization of net loss           |                           |                                  | 53   |       |                                 |   | 35   |          |       |   | 51             |     |  |      | 28  |     |      |   | 159  |      |  |   | 106  |     |  |   | 154 |     |  |   | 92  |    
|Special termination benefits       |                           |                                  |     |       |                                 |   |     |          |       |   |               |     |  |      |    |     |      |   | 2    |      |  |   | 5    |     |  |   | 3   |     |  |   | 1   |    
|                                   |                           |                                  |      |       |                                 |   |      |          |       |   |                |     |  |      |     |     |      |   |      |      |  |   |      |    
|                                   | Net periodic benefit cost |                                  | $    | 145   |                                 |   | $    | 134      |       |   | $              | 216 |  |      | $   | 192 |      |   | $    | 437  |  |   | $    | 410 |  |   | $   | 655 |  |   | $   | 595 | 
|                                   |                           |                                  |      |       |                                 |   |      |          |       |   |                |     |  |      |     |     |      |   |      |      |  |   |      |    



14



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|   |                                   
|-- | ----------------------------------
|9. | DERIVATIVES AND HEDGING ACTIVITIES





|                        |                   |                    |    |    |                   |   |    |    | 
|----------------------- | ----------------- | ------------------ | -- | -- | ----------------- | - | -- | -- | 
|                        |                   | September 30, 2005 |    |    | December 31, 2004 |  
|                        |                   |                    |    |    |                   |  
|                        |                   | (in millions)      |   
|Current assets          |                   | $                  | 58 |    |                   | $ | 99 |   
|Non-current assets      |                   |                    | 2  |    |                   |   |   |   
|                        |                   |                    |    |    |                   |  
|                        | Total assets      |                    | $  | 60 |                   |   | $  | 99 | 
|                        |                   |                    |    |    |                   |  
|Current liabilities     |                   | $                  | 14 |    |                   | $ | 42 |   
|Non-current liabilities |                   |                    |   |    |                   |   | 1  |   
|                        |                   |                    |    |    |                   |  
|                        | Total liabilities |                    | $  | 14 |                   |   | $  | 43 | 
|                        |                   |                    |    |    |                   |  



15



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|    |                      
|--- | ---------------------
|10. | STOCKHOLDERS DEFICIT



|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |      |      |   |     |   |  |   |        |        |        |  
|----------------------------- | --------------------------------------------------------- | ------------------------ | --- | - | ---------- | - | - | ----------- |  | ------------------ | ------- | - |  | --------- | ------ | -------- | ----- | - | ------------- | ----- |  | - | ------- | ---- | ---- | - | --- | - |  | - | ------ | ------ | ------ | -
|                              |                                                           |                          |     |   |            |   |   |             |  | Accumulated Other  |         |   |  |           |       
|                              |                                                           |                          |     |   |            |   |   |             |  | Comprehensive Loss |         |   |  |           |       
|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   | 
|                              |                                                           | Common Stock             |     |   | Additional |   |   |             |  | Minimum            |         |   |  |           |        |          | Total |  
|                              |                                                           |                          |     |   | Paid-In    |   |   | Accumulated |  |                    | Pension |   |  |           |        | Treasury |       |   | Stockholders |      
|                              |                                                           | Shares                   |     |   | Amount     |   |   | Capital     |  |                    | Deficit |   |  | Liability |        |          | Other |   |               | Stock |  |   | Deficit |     
|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |     
|                              |                                                           | (in millions)            |    
|Balance at January 1, 2005    |                                                           |                          | 565 |   |            | $ | 6 |             |  | $                  | 2,661   |   |  | $         | (3,913 | )        |       | $ | (2,469        | )     |  | $ | 237     |      |      | $ | (61 | ) |  | $ | (3,539 | )     
|                              | Net loss                                                  |                          |     |  |            |   |   |            |  |                    |         |  |  |           |        | (1,529   | )     |   |               |      |  |   |         |     |      |   |     |  |  |   |        | (1,529 | )     
|                              | Currency translation adjustments and other                |                          |     |  |            |   |   |            |  |                    |         |  |  |           |        |         |       |   |               | 11    |  |   |         | (222 | )(a) |   |     |  |  |   |        | (211   | )     
|                              | Net change in unrecognized gain on derivative instruments |                          |     |  |            |   |   |            |  |                    |         |  |  |           |        |         |       |   |               |      |  |   |         | (27  | )    |   |     |  |  |   |        | (27    | )     
|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |     
|                              |                                                           | Total comprehensive loss |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |      |      |   |     |   |  |   |        |        | (1,767 | )
|                              | Shares issued for employee benefit plans, net             |                          |     |  |            |   |   |            |  |                    |         | 8 |  |           |        |         |       |   |               |      |  |   |         |     |      |   |     | 9 |  |   |        | 17     |       
|                              | Dividends                                                 |                          |     |  |            |   |   |            |  |                    |         |  |  |           |        | (25      | )     |   |               |      |  |   |         |     |      |   |     |  |  |   |        | (25    | )     
|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |     
|Balance at September 30, 2005 |                                                           |                          | 565 |   |            | $ | 6 |             |  | $                  | 2,669   |   |  | $         | (5,467 | )        |       | $ | (2,458        | )     |  | $ | (12     | )    |      | $ | (52 | ) |  | $ | (5,314 | )     
|                              |                                                           |                          |     |   |            |   |   |             |  |                    |         |   |  |           |        |          |       |   |               |       |  |   |         |     






|    |                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Other includes the reversal of unrealized gains of
    $14 million from other comprehensive income due to the sale
    of our investment in Akebono Brake Industry Company, which was
    accounted for as an available-for-sale marketable security. This
    sale resulted in the recognition of a realized gain of
    $18 million in other income during the second quarter of
    2005.



|    |                  
|--- | -----------------
|11. | SEGMENT REPORTING





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|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |   |      |      |   |   |       |       | 
|--------------------------- | --------------------------------- | --------------- | - | ----- | ------------- |  | - | ---------- | ----- |  | -------- | ---- | --- | ----- | - | ---- | ---- | - | - | ----- | ----- | 
|                            |                                   | Dynamics,       |   |       |               |  |   |            |       |  |         
|                            |                                   | Propulsion,     |   |       | Electrical,   |  |   | Automotive |       |  |          |      |    
|                            |                                   | Thermal &       |   |       | Electronics & |  |   | Holdings   |       |  |          |      |    
|                            |                                   | Interior        |   |       | Safety        |  |   | Group      |       |  | Other(a) |      |     | Total |  
|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |  
|                            |                                   | (in millions)   |  
|For the Three Months Ended: |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |   |      |      |   |   |      
|September 30, 2005          |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |   |      |      |   |   |      
|                            | Net sales to GM and affiliates    |                 | $ | 1,465 |               |  | $ | 1,177      |       |  | $        | 299  |     |       | $ | 13   |      |   | $ | 2,954 |      
|                            | Net sales to other customers      |                 |   | 1,268 |               |  |   | 1,886      |       |  |          | 151  |     |       |   | 24   |      |   |   | 3,329 |      
|                            | Inter-sector net sales            |                 |   | 179   |               |  |   | 54         |       |  |          | 131  |     |       |   | (364 | )    |   |   |      |      
|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |  
|                            |                                   | Total net sales |   | $     | 2,912         |  |   | $          | 3,117 |  |          | $    | 581 |       |   | $    | (327 | ) |   | $     | 6,283 | 
|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |  
|                            | Sector operating income (loss)    |                 | $ | (273  | )             |  | $ | 40         |       |  | $        | (430 | )   |       | $ | (30  | )    |   | $ | (693  | )    
|September 30, 2004(b)       |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |   |      |      |   |   |      
|                            | Net sales to GM and affiliates    |                 | $ | 1,696 |               |  | $ | 1,414      |       |  | $        | 386  |     |       | $ |     |      |   | $ | 3,496 |      
|                            | Net sales to other customers      |                 |   | 1,219 |               |  |   | 1,807      |       |  |          | 120  |     |       |   |     |      |   |   | 3,146 |      
|                            | Inter-sector net sales            |                 |   | 191   |               |  |   | 80         |       |  |          | 179  |     |       |   | (450 | )    |   |   |      |      
|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |  
|                            |                                   | Total net sales |   | $     | 3,106         |  |   | $          | 3,301 |  |          | $    | 685 |       |   | $    | (450 | ) |   | $     | 6,642 | 
|                            |                                   |                 |   |       |               |  |   |            |       |  |          |      |     |       |  
|                            | Sector operating income (loss)(c) |                 | $ | (69   | )             |  | $ | 189        |       |  | $        | (188 | )   |       | $ | (14  | )    |   | $ | (82   | )    

|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |   |        |        |   |   |        |        | 
|-------------------------- | --------------------------------- | --------------- | - | ----- | ------------- |  | - | ---------- | ------ |  | -------- | ----- | ----- | ----- | - | ------ | ------ | - | - | ------ | ------ | 
|                           |                                   | Dynamics,       |   |       |               |  |   |            |        |  |         
|                           |                                   | Propulsion,     |   |       | Electrical,   |  |   | Automotive |        |  |          |       |      
|                           |                                   | Thermal &       |   |       | Electronics & |  |   | Holdings   |        |  |          |       |      
|                           |                                   | Interior        |   |       | Safety        |  |   | Group      |        |  | Other(a) |       |       | Total |  
|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |  
|                           |                                   | (in millions)   |  
|For the Nine Months Ended: |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |   |        |        |   |   |       
|September 30, 2005         |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |   |        |        |   |   |       
|                           | Net sales to GM and affiliates    |                 | $ | 4,830 |               |  | $ | 3,899      |        |  | $        | 1,044 |       |       | $ | (13    | )      |   | $ | 9,760  |       
|                           | Net sales to other customers      |                 |   | 4,000 |               |  |   | 5,976      |        |  |          | 365   |       |       |   | 67     |        |   |   | 10,408 |       
|                           | Inter-sector net sales            |                 |   | 595   |               |  |   | 228        |        |  |          | 454   |       |       |   | (1,277 | )      |   |   |       |       
|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |  
|                           |                                   | Total net sales |   | $     | 9,425         |  |   | $          | 10,103 |  |          | $     | 1,863 |       |   | $      | (1,223 | ) |   | $      | 20,168 | 
|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |  
|                           | Sector operating income (loss)    |                 | $ | (613  | )             |  | $ | 380        |        |  | $        | (957  | )     |       | $ | (111   | )      |   | $ | (1,301 | )     
|September 30, 2004(b)      |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |   |        |        |   |   |       
|                           | Net sales to GM and affiliates    |                 | $ | 5,789 |               |  | $ | 4,652      |        |  | $        | 1,377 |       |       | $ |       |        |   | $ | 11,818 |       
|                           | Net sales to other customers      |                 |   | 3,874 |               |  |   | 5,538      |        |  |          | 359   |       |       |   |       |        |   |   | 9,771  |       
|                           | Inter-sector net sales            |                 |   | 602   |               |  |   | 298        |        |  |          | 618   |       |       |   | (1,518 | )      |   |   |       |       
|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |  
|                           |                                   | Total net sales |   | $     | 10,265        |  |   | $          | 10,488 |  |          | $     | 2,354 |       |   | $      | (1,518 | ) |   | $      | 21,589 | 
|                           |                                   |                 |   |       |               |  |   |            |        |  |          |       |       |       |  
|                           | Sector operating income (loss)(d) |                 | $ | 146   |               |  | $ | 800        |        |  | $        | (484  | )     |       | $ | (55    | )      |   | $ | 407    |       






|    |  |                                                                                                                                                                                                            
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes activity not allocated to the product sectors and
    elimination of inter-sector transactions.                                                                                             
|   
|(b) |  | As previously disclosed, amounts have been reclassified from
    prior presentation to conform to our new sector alignment.                                                                                
|   
|(c) |  | Excludes Third Quarter 2004 Charges of $8 million for
    Dynamics, Propulsion, Thermal & Interior,
    $13 million for Electrical, Electronics & Safety,
    and $5 million for Automotive Holdings Group.

17



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|    |  |                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(d) |  | Excludes the 2004 Charges of $50 million for Dynamics,
    Propulsion, Thermal & Interior, $57 million for
    Electrical, Electronics & Safety, $48 million for
    Automotive Holdings Group and $7 million for Other.



|    |                              
|--- | -----------------------------
|12. | COMMITMENTS AND CONTINGENCIES



| |                          
| | -------------------------
| | Ongoing SEC Investigation





| |                     
| | --------------------
| | Shareholder Lawsuits







18



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##### Table of Contents













| |                             
| | ----------------------------
| | Ordinary Business Litigation









19



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|    |                  
|--- | -----------------
|13. | SUBSEQUENT EVENTS





| |                  
| | -----------------
| | Bankruptcy Filing



20



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






| |              
| | -------------
| | DIP Financing



21



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2 3


22



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23



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS

Executive Summary














24



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25



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26



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Chapter 11 Cases








27



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Other Events




28



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1 2 1 8 1 2 1 8






29



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Results of Operations






| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 versus Three
    Months Ended September 30, 2004

Net Sales.


|                                         |                        |                    |       |       |         |   |       |       | 
|---------------------------------------- | ---------------------- | ------------------ | ----- | ----- | ------- | - | ----- | ----- | 
|                                         |                        | Three Months Ended |      
|                                         |                        | September 30,      |      
|                                         |                        |                    |      
|Product Sector                           |                        | 2005               |       |       | 2004(a) |  
|                                         |                        |                    |       |       |         |  
|                                         |                        | (in millions)      |      
|Dynamics, Propulsion, Thermal & Interior |                        | $                  | 2,912 |       |         | $ | 3,106 |      
|Electrical, Electronics & Safety         |                        |                    | 3,117 |       |         |   | 3,301 |      
|Automotive Holdings Group                |                        |                    | 581   |       |         |   | 685   |      
|Other(b)                                 |                        |                    | (327  | )     |         |   | (450  | )    
|                                         |                        |                    |       |       |         |  
|                                         | Consolidated net sales |                    | $     | 6,283 |         |   | $     | 6,642 | 
|                                         |                        |                    |       |       |         |  






|    |                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The 2004 data has been reclassified to conform to the
    realignment of our business sectors by moving three additional
    manufacturing operations into the Companys Automotive
    Holdings Group (AHG) effective January 1, 2005,
    to accelerate efforts to bring these sites back to profitability
    or resolve issues at these operations through other actions.
|   
|(b) | Other includes activity not allocated to the product sectors and
    eliminations of inter-sector transactions.                                                                                                                                                                                                                                                                



Gross Margin.


30



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Selling, General and Administrative.


Depreciation and Amortization.


Operating Results.


|                                         |                               |               |      |      |      |   |      |      |  
|---------------------------------------- | ----------------------------- | ------------- | ---- | ---- | ---- | - | ---- | ---- | -
|                                         |                               | Three Months  |     
|                                         |                               | Ended         |     
|                                         |                               | September 30, |     
|                                         |                               |               |     
|Product Sector                           |                               | 2005          |      |      | 2004 |  
|                                         |                               |               |      |      |      |  
|                                         |                               | (in millions) |     
|Dynamics, Propulsion, Thermal & Interior |                               | $             | (273 | )    |      | $ | (69  | )   
|Electrical, Electronics & Safety         |                               |               | 40   |      |      |   | 189  |     
|Automotive Holdings Group                |                               |               | (430 | )    |      |   | (188 | )   
|Other(a)                                 |                               |               | (30  | )    |      |   | (14  | )   
|                                         |                               |               |      |      |      |  
|                                         | Subtotal                      |               |      | (693 | )    |   |      | (82  | )
|Third Quarter 2004 Charges(b)            |                               |               |     |      |      |   | (26  | )   
|                                         |                               |               |      |      |      |  
|                                         | Total operating (loss) income |               | $    | (693 | )    |   | $    | (108 | )
|                                         |                               |               |      |      |      |  






|    |  |                                                                                                                                                                                                                  
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes activity not allocated to the product sectors and
    eliminations of inter-sector transactions.                                                                                                  
|   
|(b) |  | Represents the Third Quarter 2004 Charges of $8 million for
    Dynamics, Propulsion, Thermal & Interior,
    $13 million for Electrical, Electronics & Safety,
    and $5 million for Automotive Holdings Group.



31



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Other Income and Expense.


Taxes.








| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 versus Nine
    Months Ended September 30, 2004

Net Sales.


|                                         |                        |                   |        |        |         |   |        |        | 
|---------------------------------------- | ---------------------- | ----------------- | ------ | ------ | ------- | - | ------ | ------ | 
|                                         |                        | Nine Months Ended |       
|                                         |                        | September 30,     |       
|                                         |                        |                   |       
|Product Sector                           |                        | 2005              |        |        | 2004(a) |  
|                                         |                        |                   |        |        |         |  
|                                         |                        | (in millions)     |       
|Dynamics, Propulsion, Thermal & Interior |                        | $                 | 9,425  |        |         | $ | 10,265 |       
|Electrical, Electronics & Safety         |                        |                   | 10,103 |        |         |   | 10,488 |       
|Automotive Holdings Group                |                        |                   | 1,863  |        |         |   | 2,354  |       
|Other(b)                                 |                        |                   | (1,223 | )      |         |   | (1,518 | )     
|                                         |                        |                   |        |        |         |  
|                                         | Consolidated net sales |                   | $      | 20,168 |         |   | $      | 21,589 | 
|                                         |                        |                   |        |        |         |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The 2004 data has been reclassified to conform to the
    realignment of our business sectors by moving three additional
    manufacturing operations into the Companys Automotive
    Holdings Group (AHG) effective January 1, 2005,
    to accelerate efforts to bring these sites back to profitability
    or resolve issues at these operations through other actions.
|   
|(b) |  | Other includes activity not allocated to the product sectors and
    eliminations of inter-sector transactions.                                                                                                                                                                                                                                                                

32



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Gross Margin.


Selling, General and Administrative.


Depreciation and Amortization.


Operating Results.


33



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|                                         |                               |                   |      |        |      |   |      |     | 
|---------------------------------------- | ----------------------------- | ----------------- | ---- | ------ | ---- | - | ---- | --- | 
|                                         |                               | Nine Months Ended |     
|                                         |                               | September 30,     |     
|                                         |                               |                   |     
|Product Sector                           |                               | 2005              |      |        | 2004 |  
|                                         |                               |                   |      |        |      |  
|                                         |                               | (in millions)     |     
|Dynamics, Propulsion, Thermal & Interior |                               | $                 | (613 | )      |      | $ | 146  |    
|Electrical, Electronics & Safety         |                               |                   | 380  |        |      |   | 800  |    
|Automotive Holdings Group                |                               |                   | (957 | )      |      |   | (484 | )  
|Other(a)                                 |                               |                   | (111 | )      |      |   | (55  | )  
|                                         |                               |                   |      |        |      |  
|                                         | Subtotal                      |                   |      | (1,301 | )    |   |      | 407 | 
|2004 Charges(b)                          |                               |                   |     |        |      |   | (162 | )  
|                                         |                               |                   |      |        |      |  
|                                         | Total operating (loss) income |                   | $    | (1,301 | )    |   | $    | 245 | 
|                                         |                               |                   |      |        |      |  






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes activity not allocated to the product sectors and
    eliminations of inter-sector transactions.                                                                                                           
|   
|(b) |  | Represents the 2004 Charges of $50 million for Dynamics,
    Propulsion, Thermal & Interior, $57 million for
    Electrical, Electronics & Safety, $48 million for
    Automotive Holdings Group and $7 million for Other.



Other Income and Expense.


Taxes.


34



---



##### Table of Contents









Liquidity and Capital Resources






| |                              
| | -----------------------------
| | Overview of Capital Structure









35



---



##### Table of Contents







2 3




36



---



##### Table of Contents
















37



---



##### Table of Contents











| |                         
| | ------------------------
| | Prepetition Indebtedness



Bonds and Trust Preferred Securities.


1 4 1 4




38



---



##### Table of Contents





Prepetition Credit Facilities.












39



---



##### Table of Contents



Other Prepetition Financial Arrangements.











Other Financial Transactions.






40



---



##### Table of Contents













| |                              
| | -----------------------------
| | Credit Ratings, Stock Listing





1 2 1 8 1 2 1 8




| |           
| | ----------
| | Cash Flows

Operating Activities.


41



---



##### Table of Contents





Investing Activities.


Financing Activities.


Dividends.


Outlook






42



---



##### Table of Contents













43



---



##### Table of Contents







Ongoing SEC Investigation




44



---



##### Table of Contents



Shareholder Lawsuits














45



---



##### Table of Contents





Inflation




Environmental Matters






Forward-Looking Statements




46



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##### Table of Contents










|        |                                                           
|------- | ----------------------------------------------------------
|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK








|        |                        
|------- | -----------------------
|ITEM 4. | CONTROLS AND PROCEDURES



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|                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Control Deficiency                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Current Status of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Noted in Form 10-K                                                                                                                                                                                                                                                                       |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Insufficient numbers of personnel having appropriate knowledge,
    experience and training in the application of GAAP at the
    divisional level, and insufficient personnel at the
    Companys headquarters to provide effective oversight and
    review of financial transactions |  |  Implement additional oversight at the Companys
    headquarters and operating units to review the accounting for
    transactions to ensure compliance with GAAP.
     Management is increasing the number of qualified
    accountants on the global accounting staff by actively
    recruiting additional certified public accountants to increase
    the knowledge of accounting and strengthen internal controls
    within the Company.
     Management has committed to providing the finance
    staff with additional support and training in order to enable
    them to identify unusual or complex transactions requiring
    further consideration by technical accounting experts or others
    within the organization. |  |  Delphi has hired several qualified accountants at
    both the Companys headquarters and various operating
    units. Additional hiring efforts are still ongoing.
     Global training on a variety of accounting and
    reporting related topics has occurred and additional training is
    planned for the fourth quarter of 2005.
     To address this material weakness until such time as
    all remediation activities are completed, management continues
    to perform the following procedures:
     More transactions are reviewed by the chief
    accounting officer rather than at the business unit or function,
    particularly those which deviate from previously reviewed or
    standard terms and
    conditions;   Management has
    strengthened its review of the documentation supporting the
    accounting for transactions;   External
    experts are being utilized, when deemed necessary, to assist in
    preparing and reviewing the appropriate accounting documentation.

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|                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Control Deficiency                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Current Status of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Noted in Form 10-K                                                                                                                        |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Ineffective or inadequate accounting policies to ensure the
    proper and consistent application of GAAP throughout the
    organization |  |  Delphi has initiated a project to review and update
    accounting policies, establish written policies for areas where
    such policies do not exist utilizing third party experts in
    accounting to assist in this effort.
     Management will conduct training sessions throughout
    the organization to explain the accounting policies and
    procedures and require that accounting conclusions, assumptions
    and estimates are documented and supported by such accounting
    policies or relevant accounting literature in accordance with
    GAAP.
     Management will assess the effectiveness of the
    Companys adherence to the accounting policies through
    ongoing monitoring activities. |  |  Until Delphi is able to fully implement the
    remediation plan related to this material weakness, we are
    relying upon the management procedures indicated above as they
    also mitigate the risk of this control deficiency.
     Management conducted training sessions with the
    finance staff of each division to review these policies and to
    increase sensitivity and focus on the issues covered by the new
    policies and continues to monitor their implementation.
     Accounting policies for high risk areas were
    substantially complete as of September 30, 2005 and these
    written policies were made available to all Delphi employees by
    the end of October 2005.
     Delphi management provided training to reinforce the
    new accounting policies in late October 2005.
     In conjunction with the year end financial closing
    process for December 31, 2005, Delphi management will
    evaluate the adherence to the new accounting policies.

49



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|                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Current Status of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Control Deficiency                                                                                  |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Ineffective or inadequate controls over the administration and
    related accounting for contracts |  |  Management will adopt formal contract administration
    procedures and will require consistent application throughout
    the organization.
     Management will document its contract administration
    procedures and periodically evaluate and test such procedures to
    help prevent recurrences of the issues identified in the 2004
    Annual Report on Form 10-K.
     Management has conducted and will continue to
    provide training throughout the organization to communicate the
    importance of documenting the economic substance and course of
    dealings related to transactions, including any related
    amendments or correspondence between the parties, to facilitate
    appropriate accounting for transactions. |  |  As reported in the 2004 Annual Report on
    Form 10-K, some areas in the organization have revised
    their contract administration procedures. For example, changes
    were implemented in the second half of 2004 with respect to the
    administration of contracts for information technology services.
    These changes include the implementation of a contract
    administration procedure that requires documentation by finance,
    legal and information technology services that the contracts
    have been reviewed, including a summary of all pertinent
    transaction terms.
     For other contracts, each operating unit has
    implemented an interim contract identification and review
    process until a permanent process can be developed and
    implemented.
     Given the complexity involved in developing and
    implementing a formal contract administration process, Delphi
    has not yet finalized its plan to address this issue. We expect
    to have a plan developed by December 31, 2005 which will
    address the contract review procedures as well as training and
    monitoring requirements. The remediation of this material
    weakness will continue into 2006.

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|                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Current Status of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Control Deficiency                                                                                                                                                                                                                          |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Remediation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Ineffective tone within the organization related to
    the discouragement, prevention or detection of management
    override, as well as inadequate emphasis on thorough and proper
    analysis of accounts and financial transactions |  |  Delphi Management will continue to take actions to
    foster a culture that encourages those with concerns of
    management override to bring such concerns to the prompt
    attention of management, whether directly or through the
    Companys ethics line, so that those concerns can be
    evaluated and appropriate action taken.
     The principal remedial action taken to address this
    aspect is to ensure that those at the top not only set the right
    tone but also understand that they will be held personally
    accountable for the failure to foster an environment that
    encourages those with concerns to present them and to elevate
    and address those concerns constructively within the
    organization.
     Management will disseminate training programs and
    presentations throughout the organization, starting with the top
    executive officers, to instill lessons learned from the Audit
    Committees investigation as well as managements
    assessment of internal controls, including clearly outlining the
    review and consultation protocol for non-routine
    transactions.
     Management recognizes that many of the remedial
    actions it has taken or will take require continuous monitoring
    and evaluation for effectiveness, which will depend on
    maintaining a strong internal audit function. Until such time as
    the Company is able to identify a suitable replacement to lead
    its internal audit function, it will look to external experts to
    supplement its existing staff. |  |  As discussed in the 2004 Annual Report on
    Form 10-K several specific actions have taken place since
    2002 to remediate the control deficiencies identified during the
    accounting investigation by the Audit Committee.
     In July 2005, Delphis Board of Directors named
    a new CEO, who is fostering a culture of openness throughout the
    organization.
     In October 2005, Delphis Board of Directors
    named a new CFO.
     Also in October 2005, Delphis Board of
    Directors assigned the General Counsel the additional duties of
    Chief Compliance Officer, reporting in this capacity to the CEO
    and the chair of the Audit Committee.
     In early November 2005, senior members of
    Delphis executive management attended a training session
    focusing on lessons learned from the accounting investigation,
    ethical business behavior and maintaining appropriate tone at
    the top. The remainder of the executive management team will
    attend this training by December 31, 2005. The entire
    salaried workforce will be trained during 2006.
     Delphi is still actively seeking to fill the
    leadership role in the internal audit function.
     Senior management will continue to reinforce the
    proper tone at the top through ongoing
    communication.
     Management will evaluate the effectiveness of the
    tone at the top in discouraging, preventing or
    detecting of management override at various levels of the
    Company.



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| |   |                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Ensure that payments of prepetition liabilities subsequent to
    the bankruptcy filing are made in accordance with the approved
    motions by the Court;                                                                     
|
| |  | Ensure that prepetition liabilities are adequately segregated
    from post-petition liabilities; and                                                                                                                          
|
| |  | Ensure that Delphis financial statements comply with
    American Institute of Certified Public Accountants Statement of
    Position 90-7, Financial Reporting by Entities in
    Reorganization under the Bankruptcy Code.



52



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PART II. OTHER INFORMATION







|        |                  
|------- | -----------------
|ITEM 1. | LEGAL PROCEEDINGS










|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS

Purchase of Equity Securities by the Issuer and Affiliated
Purchasers




|                                             |  |                 |         |     |            |                        |      |                      |                     |  |                    |  |  |  |            | 
|-------------------------------------------- |  | --------------- | ------- | --- | ---------- | ---------------------- | ---- | -------------------- | ------------------- |  | ------------------ |  |  |  | ---------- | 
|                                             |  |                 |         |     |            |                        |      | Maximum Number of    |                    
|                                             |  |                 |         |     |            | Total Number of Shares |      |                      | Shares that May Yet | 
|                                             |  | Total Number of |         |     | Average    |                        |      | Purchased as Part of |                     |  | Be Purchased Under | 
|                                             |  | Shares          |         |     | Price Paid |                        |      | Publicly Announced   |                     |  | the Plans or       | 
|Period                                       |  | Purchased       |         |     | Per Share  |                        |      | Plans or Programs(a) |                     |  | Programs(a)        | 
|                                             |  |                 |         |     |            |                        |      |                      |                     |  |                    | 
|July 1, 2005 through July 31, 2005           |  |                 | 216,730 | (b) |            | $                      | 5.40 |                      |                     |  |                   |  |  |  | 19,000,000 | 
|August 1, 2005 through August 31, 2005       |  |                 |        |     |            | $                      |     |                      |                     |  |                   |  |  |  | 19,000,000 | 
|September 1, 2005 through September 30, 2005 |  |                 |        |     |            | $                      |     |                      |                     |  |                   |  |  |  | 19,000,000 | 
|                                             |  |                 |         |     |            |                        |      |                      |                     |  |                    | 
|Total                                        |  |                 | 216,730 |     |            | $                      | 5.40 |                      |                     |  |                   |  |  |  | 19,000,000 | 
|                                             |  |                 |         |     |            |                        |      |                      |                     |  |                    | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As part of Delphis stock repurchase program, in February
    2005, the Board of Directors authorized the repurchase of up to
    an aggregate of 19 million shares of our common stock
    through the first quarter of 2006 to fund obligations for our
    stock options and other awards issued under its equity based
    compensation plan. To date no repurchases have been made
    pursuant to that plan.                                                                                               
|   
|(b) |  | Primarily includes shares of common stock that were withheld to
    satisfy the Companys tax withholding obligations arising
    upon vesting of restricted stock units issued pursuant to the
    Companys equity based compensation plan. The remainder
    relates to shares that were returned as a result of the clawback
    provision in our incentive compensation plan. These shares were
    returned from the January 3, 2005 distribution of the 2002
    special retention restricted stock units.






|        |                                
|------- | -------------------------------
|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES



53



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|        |                  
|------- | -----------------
|ITEM 5. | OTHER INFORMATION

Annual Meeting









|        |         
|------- | --------
|ITEM 6. | EXHIBITS

|        |    |              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------- | -- | ------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 3  | (a)          |  | Amended and Restated Certificate of Incorporation of Delphi
    Automotive Systems Corporation, incorporated by reference to
    Exhibit 3(a) to Delphis Quarterly Report on
    Form 10-Q for the quarter ended June 30, 2002.                                                                                                                                                                                                                                                      
|        | 3  | (b)          |  | Certificate of Ownership and Merger, dated March 13, 2002,
    Merging Delphi Corporation into Delphi Automotive Systems
    Corporation, incorporated by reference to Exhibit 3(b) to
    Delphis Quarterly Report on Form 10-Q for the quarter
    ended June 30, 2002.                                                                                                                                                                                                            
|        | 3  | (c)          |  | Amended and Restated Bylaws of Delphi Corporation, incorporated
    by reference to Exhibit 99 (c) to Delphis Report
    on Form 8-K filed October 14, 2005.                                                                                                                                                                                                                                                                                                                         
|        | 10 | (a)          |  | Master Sale and Purchase Agreement between Johnson Controls,
    Inc. and Delphi Corporation dated June 30, 2005,
    incorporated by reference to Exhibit 99 (a) to
    Delphis Report on Form 8-K filed on July 1, 2005.                                                                                                                                                                                                                                                           
|        | 10 | (b)          |  | Form of Employment Agreement for Officers of Delphi Corporation,
    incorporated by reference to Exhibit 99 (a) to
    Delphis Report on Form 8-K filed on October 7,
    2005.*                                                                                                                                                                                                                                                                                                    
|        | 10 | (c)          |  | Employment Agreement with an Executive Officer dated
    October 5, 2005, incorporated by reference to
    Exhibit 99 (b) to Delphis Report on
    Form 8-K filed on October 14, 2005.*                                                                                                                                                                                                                                                                                              
|        | 10 | (d)          |  | Revolving Credit, Term Loan and Guaranty Agreement, dated as of
    October 14, 2005, among Delphi and the lenders named
    therein, incorporated by reference to Exhibit 99
    (a) to Delphis Report on Form 8-K filed on
    October 20, 2005 and amended by First Amendment to
    Revolving Credit, Term Loan and Guaranty Agreement, dated
    October 27, 2005, incorporated by reference to
    Exhibit 99 (a) to Delphis Report on
    Form 8-K filed on November 1, 2005.
|        | 31 | (a)          |  | Certification Pursuant to Exchange Act
    Rules 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                          
|        | 31 | (b)          |  | Certification Pursuant to Exchange Act
    Rules 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                          
|        | 32 | (a)          |  | Certification Pursuant to 18 U.S.C. Section 1350,
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                                                                                                                                                                                                                          
|        | 32 | (b)          |  | Certification Pursuant to 18 U.S.C. Section 1350,
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                                                                                                                                                                                                                          






|  |                                                         
|- | --------------------------------------------------------
|* | Management contract or compensatory plan or arrangement.

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SIGNATURE




|                 |  |                                                
|---------------- |  | -----------------------------------------------
|                 |  | Delphi Corporation(Registrant)                 
|                
|                
|November 9, 2005 |  | /s/ John D. Sheehan                            
|                 |  |                                                
|                 |  | John D. Sheehan,                               
|                 |  | Vice President and Chief Restructuring Officer,
|                 |  | Chief Accounting Officer and Controller        

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EXHIBIT INDEX


|        |    |              |  |                                                                                                                                             
|------- | -- | ------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 31 | (a)          |  | Certification Pursuant to Exchange Act
    Rules 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
|        | 31 | (b)          |  | Certification Pursuant to Exchange Act
    Rules 13a-14(a)/15d-14(a), adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
|        | 32 | (a)          |  | Certification Pursuant to 18 U.S.C. Section 1350,
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                
|        | 32 | (b)          |  | Certification Pursuant to 18 U.S.C. Section 1350,
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.