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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, DC 20549-1004


FORM 10-Q/ A


(Amendment No. 1)




|  | 
|- | 
|þ | 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2004


OR




|  | 
|- | 
|o | 

TRANSITION REPORT PURSUANT TO SECTION 13 OF


THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from

to
.


Commission file No. 1-14787


DELPHI CORPORATION




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

(248) 813-2000




o þ


þ o












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##### Table of Contents



Explanatory Note








2



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DELPHI CORPORATION


INDEX


|                                                     |  |                                                                                                 |    |      |    | 
|---------------------------------------------------- |  | ----------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                     |  |                                                                                                 |    | Page |   
|                                                     |  |                                                                                                 |    |      |   
|Part I  Financial
    Information                  
|Item 1.                                              |  | Financial Statements (Unaudited)                                                                |    |      |    | 
|                                                     |  | Consolidated Statements of Income for the
    Three and Six Months Ended June 30, 2004 and 2003 |    |      | 4  | 
|                                                     |  | Consolidated Balance Sheets at
    June 30, 2004 and December 31, 2003                          |    |      | 5  | 
|                                                     |  | Consolidated Statements of Cash Flows for
    the Six Months Ended June 30, 2004 and 2003       |    |      | 6  | 
|                                                     |  | Notes to Consolidated Financial
    Statements                                                  |    |      | 7  | 
|Item 2.                                              |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations       |    |      | 25 | 
|Item 3.                                              |  | Quantitative and Qualitative Disclosures
    About Market Risk                                  |    |      | 35 | 
|Item 4.                                              |  | Controls and Procedures                                                                         |    |      | 35 | 
|                                                    
|Part II  Other
    Information                     
|Item 1.                                              |  | Legal Proceedings                                                                               |    |      | 36 | 
|Item 2.                                              |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                 |    |      | 36 | 
|Item 4.                                              |  | Submission of Matters to a Vote of Security
    Holders                                         |    |      | 36 | 
|Item 6.                                              |  | Exhibits and Reports on Form 8-K                                                                |    |      | 37 | 
|Signature                                            |  |                                                                                                 | 39 |     
|Delphi Corporation Annual Incentive Plan            
|Section 302 Certification of Chief Executive Officer
|Section 302 Certification of Chief Financial Officer
|Section 906 Certification of Chief Executive Officer
|Section 906 Certification of Chief Financial Officer



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PART I. FINANCIAL INFORMATION





ITEM 1. FINANCIAL STATEMENTS


DELPHI CORPORATION





CONSOLIDATED STATEMENTS OF INCOME (Unaudited)


|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |        |        |   |     |        |        | 
|---------------------------------------------------------------- | ------------------------------------------- | --------------------------------------- | --- | ----- | -------------- | - | --- | ------------ | ----- | - | ------------ | ------ | ------ | - | --- | ------ | ------ | 
|                                                                 |                                             | Three Months                            |     |       | Six Months     |  
|                                                                 |                                             | Ended June 30,                          |     |       | Ended June 30, |  
|                                                                 |                                             |                                         |     |       |                |  
|                                                                 |                                             | 2004                                    |     |       | 2003           |   |     | 2004         |       |   | 2003         |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|                                                                 |                                             | (As Restated                            |     |       | (As Restated   |   |     | (As Restated |       |   | (As Restated |       
|                                                                 |                                             | See Note 2)                             |     |       | See Note 2)    |   |     | See Note 2)  |       |   | See Note 2)  |       
|                                                                 |                                             | (in millions, except per share amounts) |    
|Net sales:                                                       |                                             |                                         |     |       |                |   |     |              |       |   |              |        |        |   |     |       
|                                                                 | General Motors and affiliates               |                                         | $   | 4,133 |                |   | $   | 4,314        |       |   | $            | 8,322  |        |   | $   | 8,869  |       
|                                                                 | Other customers                             |                                         |     | 3,409 |                |   |     | 2,777        |       |   |              | 6,625  |        |   |     | 5,399  |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|                                                                 |                                             | Total net sales                         |     |       | 7,542          |   |     |              | 7,091 |   |              |        | 14,947 |   |     |        | 14,268 | 
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|Operating expenses:                                              |                                             |                                         |     |       |                |   |     |              |       |   |              |        |        |   |     |       
|                                                                 | Cost of sales, excluding items listed below |                                         |     | 6,607 |                |   |     | 6,209        |       |   |              | 13,171 |        |   |     | 12,530 |       
|                                                                 | Selling, general and administrative         |                                         |     | 410   |                |   |     | 419          |       |   |              | 788    |        |   |     | 782    |       
|                                                                 | Depreciation and amortization               |                                         |     | 283   |                |   |     | 263          |       |   |              | 565    |        |   |     | 518    |       
|                                                                 | Employee and product line charges           |                                         |     | 32    |                |   |     |             |       |   |              | 70     |        |   |     |       |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|                                                                 |                                             | Total operating expenses                |     |       | 7,332          |   |     |              | 6,891 |   |              |        | 14,594 |   |     |        | 13,830 | 
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|Operating income                                                 |                                             |                                         | 210 |       |                |   | 200 |              |       |   | 353          |        |        |   | 438 |       
|                                                                 | Interest expense                            |                                         |     | (55   | )              |   |     | (49          | )     |   |              | (117   | )      |   |     | (97    | )     
|                                                                 | Other income (expense), net                 |                                         |     | (5    | )              |   |     | 1            |       |   |              | (11    | )      |   |     | (3     | )     
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|Income before income taxes, minority interest, and equity income |                                             |                                         | 150 |       |                |   | 152 |              |       |   | 225          |        |        |   | 338 |       
|                                                                 | Income tax expense                          |                                         |     | (17   | )              |   |     | (50          | )     |   |              | (40    | )      |   |     | (116   | )     
|                                                                 | Minority interest, net of tax               |                                         |     | (15   | )              |   |     | (11          | )     |   |              | (26    | )      |   |     | (22    | )     
|                                                                 | Equity income                               |                                         |     | 25    |                |   |     | 15           |       |   |              | 47     |        |   |     | 30     |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|Net income                                                       |                                             | $                                       | 143 |       |                | $ | 106 |              |       | $ | 206          |        |        | $ | 230 |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       
|Earnings per share                                               |                                             |                                         |     |       |                |   |     |              |       |   |              |        |        |   |     |       
|                                                                 | Basic and diluted                           |                                         | $   | 0.25  |                |   | $   | 0.19         |       |   | $            | 0.37   |        |   | $   | 0.41   |       
|                                                                 |                                             |                                         |     |       |                |   |     |              |       |   |              |       



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DELPHI CORPORATION





CONSOLIDATED BALANCE SHEETS


|                                           |                                                                                                                |                                                   |                            |        |              |        |        |        |       |        | 
|------------------------------------------ | -------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------- | ------ | ------------ | ------ | ------ | ------ | ----- | ------ | 
|                                           |                                                                                                                | June 30,                                          |                            |        |             
|                                           |                                                                                                                | 2004                                              |                            |        | December 31, |       
|                                           |                                                                                                                | (Unaudited)                                       |                            |        | 2003         |       
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                | (As Restated                                      |                            |        | (As Restated |       
|                                           |                                                                                                                | See Note 2)                                       |                            |        | See Note 2)  |       
|                                           |                                                                                                                | (in millions)                                     |                           
|ASSETS                                    
|Current assets:                            |                                                                                                                |                                                   |                            |        |              |        |        |       
|                                           | Cash and cash equivalents                                                                                      |                                                   | $                          | 681    |              |        | $      | 893    |      
|                                           | Accounts receivable, net:                                                                                      |                                                   |                            |        |              |        |        |        |      
|                                           |                                                                                                                | General Motors and affiliates                     |                            |        | 2,469        |        |        |        | 2,327 |       
|                                           |                                                                                                                | Other customers                                   |                            |        | 1,657        |        |        |        | 1,501 |       
|                                           | Retained interest in receivables, net                                                                          |                                                   |                            | 586    |              |        |        | 717    |      
|                                           | Inventories, net:                                                                                              |                                                   |                            |        |              |        |        |        |      
|                                           |                                                                                                                | Productive material, work-in-process and supplies |                            |        | 1,430        |        |        |        | 1,318 |       
|                                           |                                                                                                                | Finished goods                                    |                            |        | 464          |        |        |        | 478   |       
|                                           | Deferred income taxes                                                                                          |                                                   |                            | 360    |              |        |        | 367    |      
|                                           | Prepaid expenses and other                                                                                     |                                                   |                            | 247    |              |        |        | 269    |      
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                |                                                   | Total current assets       |        |              | 7,894  |        |        |       | 7,870  | 
|Long-term assets:                          |                                                                                                                |                                                   |                            |        |              |        |        |       
|                                           | Property, net                                                                                                  |                                                   |                            | 6,147  |              |        |        | 6,399  |      
|                                           | Deferred income taxes                                                                                          |                                                   |                            | 4,077  |              |        |        | 3,961  |      
|                                           | Goodwill                                                                                                       |                                                   |                            | 791    |              |        |        | 773    |      
|                                           | Other intangible assets                                                                                        |                                                   |                            | 47     |              |        |        | 81     |      
|                                           | Pension intangible assets                                                                                      |                                                   |                            | 1,167  |              |        |        | 1,167  |      
|                                           | Other                                                                                                          |                                                   |                            | 830    |              |        |        | 815    |      
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                |                                                   | Total assets               |        | $            | 20,953 |        |        | $     | 21,066 | 
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                          
|LIABILITIES AND STOCKHOLDERS EQUITY      
|Current liabilities:                       |                                                                                                                |                                                   |                            |        |              |        |        |       
|                                           | Notes payable and current portion of long-term debt                                                            |                                                   | $                          | 660    |              |        | $      | 892    |      
|                                           | Accounts payable                                                                                               |                                                   |                            | 3,291  |              |        |        | 3,133  |      
|                                           | Accrued liabilities                                                                                            |                                                   |                            | 2,400  |              |        |        | 2,684  |      
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                |                                                   | Total current liabilities  |        |              | 6,351  |        |        |       | 6,709  | 
|Long-term liabilities:                     |                                                                                                                |                                                   |                            |        |              |        |        |       
|                                           | Long-term debt                                                                                                 |                                                   |                            | 2,071  |              |        |        | 2,152  |      
|                                           | Junior subordinated notes due to Delphi Trust I and II                                                         |                                                   |                            | 412    |              |        |        | 412    |      
|                                           | Pension benefits                                                                                               |                                                   |                            | 3,541  |              |        |        | 3,577  |      
|                                           | Postretirement benefits other than pensions                                                                    |                                                   |                            | 5,989  |              |        |        | 5,697  |      
|                                           | Other                                                                                                          |                                                   |                            | 868    |              |        |        | 905    |      
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                |                                                   | Total liabilities          |        |              | 19,232 |        |        |       | 19,452 | 
|                                           |                                                                                                                |                                                   |                            |        |              |       
|Commitments and contingencies (Note 10)    |                                                                                                                |                                                   |                            |        |              |        |        |       
|Minority interest                          |                                                                                                                |                                                   | 182                        |        |              |        | 168    |       
|Stockholders equity:                      |                                                                                                                |                                                   |                            |        |              |        |        |       
|                                           | Common stock, $0.01 par value, 1,350 million shares
    authorized, 565 million shares issued in 2004 and 2003 |                                                   |                            | 6      |              |        |        | 6      |      
|                                           | Additional paid-in capital                                                                                     |                                                   |                            | 2,653  |              |        |        | 2,660  |      
|                                           | Retained earnings                                                                                              |                                                   |                            | 1,124  |              |        |        | 997    |      
|                                           | Minimum pension liability                                                                                      |                                                   |                            | (2,006 | )            |        |        | (2,006 | )    
|                                           | Accumulated other comprehensive loss, excluding minimum pension
    liability                                  |                                                   |                            | (177   | )            |        |        | (136   | )    
|                                           | Treasury stock, at cost (3.8 million and 4.7 million
    shares in 2004 and 2003, respectively)                |                                                   |                            | (61    | )            |        |        | (75    | )    
|                                           |                                                                                                                |                                                   |                            |        |              |       
|                                           |                                                                                                                |                                                   | Total stockholders equity |        |              | 1,539  |        |        |       | 1,446  | 
|                                           |                                                                                                                |                                                   |                            |        |              |       
|Total liabilities and stockholders equity |                                                                                                                | $                                                 | 20,953                     |        |              | $      | 21,066 |       
|                                           |                                                                                                                |                                                   |                            |        |              |       



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DELPHI CORPORATION





CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


|                                                                  |                                                                                         |                                                                |                                           |      |              |      |       |      |      |      |  
|----------------------------------------------------------------- | --------------------------------------------------------------------------------------- | -------------------------------------------------------------- | ----------------------------------------- | ---- | ------------ | ---- | ----- | ---- | ---- | ---- | -
|                                                                  |                                                                                         | Six Months                                                     |                                          
|                                                                  |                                                                                         | Ended June 30,                                                 |                                          
|                                                                  |                                                                                         |                                                                |                                          
|                                                                  |                                                                                         | 2004                                                           |                                           |      | 2003         |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|                                                                  |                                                                                         | (As Restated                                                   |                                           |      | (As Restated |     
|                                                                  |                                                                                         | See Note 2)                                                    |                                           |      | See Note 2)  |     
|                                                                  |                                                                                         | (in millions)                                                  |                                          
|Cash flows from operating activities:                             |                                                                                         |                                                                |                                           |      |              |      |       |     
|                                                                  | Net income                                                                              |                                                                | $                                         | 206  |              |      | $     | 230  |     
|                                                                  | Adjustments to reconcile net income to net cash provided by
    operating activities:   |                                                                |                                           |      |              |      |       |      |     
|                                                                  |                                                                                         | Depreciation and amortization                                  |                                           |      | 565          |      |       |      | 518  |     
|                                                                  |                                                                                         | Deferred income taxes                                          |                                           |      | (101         | )    |       |      | 44   |     
|                                                                  |                                                                                         | Employee and product line charges                              |                                           |      | 70           |      |       |      |     |     
|                                                                  |                                                                                         | Equity income                                                  |                                           |      | (47          | )    |       |      | (30  | )   
|                                                                  | Changes in operating assets and liabilities:                                            |                                                                |                                           |      |              |      |       |      |     
|                                                                  |                                                                                         | Accounts receivable and retained interests in receivables, net |                                           |      | (167         | )    |       |      | (420 | )   
|                                                                  |                                                                                         | Inventories, net                                               |                                           |      | (101         | )    |       |      | (55  | )   
|                                                                  |                                                                                         | Prepaid expenses and other                                     |                                           |      | 66           |      |       |      | (31  | )   
|                                                                  |                                                                                         | Accounts payable                                               |                                           |      | 158          |      |       |      | 205  |     
|                                                                  |                                                                                         | Employee and product line charge obligations                   |                                           |      | (215         | )    |       |      | (24  | )   
|                                                                  |                                                                                         | Accrued and other long-term liabilities                        |                                           |      | 112          |      |       |      | (57  | )   
|                                                                  |                                                                                         | Other                                                          |                                           |      | 43           |      |       |      | 18   |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|                                                                  |                                                                                         |                                                                | Net cash provided by operating activities |      |              | 589  |       |      |      | 398  |  
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|Cash flows from investing activities:                             |                                                                                         |                                                                |                                           |      |              |      |       |     
|                                                                  | Capital expenditures                                                                    |                                                                |                                           | (430 | )            |      |       | (499 | )   
|                                                                  | Proceeds from sale of property                                                          |                                                                |                                           | 31   |              |      |       | 27   |     
|                                                                  | Other                                                                                   |                                                                |                                           | 14   |              |      |       | 41   |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|                                                                  |                                                                                         |                                                                | Net cash used in investing activities     |      |              | (385 | )     |      |      | (431 | )
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|Cash flows from financing activities:                             |                                                                                         |                                                                |                                           |      |              |      |       |     
|                                                                  | Repayment of debt securities                                                            |                                                                |                                           | (500 | )            |      |       |     |     
|                                                                  | Net proceeds from (repayments of) borrowings under credit
    facilities and other debt |                                                                |                                           | 194  |              |      |       | (190 | )   
|                                                                  | Dividend payments                                                                       |                                                                |                                           | (79  | )            |      |       | (79  | )   
|                                                                  | Issuances of treasury stock                                                             |                                                                |                                           | 2    |              |      |       | 1    |     
|                                                                  | Other                                                                                   |                                                                |                                           | (19  | )            |      |       | (12  | )   
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|                                                                  |                                                                                         |                                                                | Net cash used in financing activities     |      |              | (402 | )     |      |      | (280 | )
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|Effect of exchange rate fluctuations on cash and cash equivalents |                                                                                         |                                                                | (14                                       | )    |              |      | 29    |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|Decrease in cash and cash equivalents                             |                                                                                         |                                                                | (212                                      | )    |              |      | (284  | )   
|Cash and cash equivalents at beginning of period                  |                                                                                         |                                                                | 893                                       |      |              |      | 1,028 |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     
|Cash and cash equivalents at end of period                        |                                                                                         | $                                                              | 681                                       |      |              | $    | 744   |     
|                                                                  |                                                                                         |                                                                |                                           |      |              |     



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DELPHI CORPORATION





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)




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

General




Adoption of FSP 106-2


|                                                                 |  |                |     |  |      |   |    | 
|---------------------------------------------------------------- |  | -------------- | --- |  | ---- | - | -- | 
|                                                                 |  | Three Months   |    
|                                                                 |  | Ended June 30, |    
|                                                                 |  |                |    
|                                                                 |  | 2004           |     |  | 2003 |  
|                                                                 |  |                |     |  |      |  
|                                                                 |  | (in millions)  |    
|Net income, as reported in Form 10-Q, filed on
    July 16, 2004 |  | $              | 131 |  |      | $ | 88 | 
|Effect of adoption of FSP 106-2, net                             |  |                | 2   |  |      |   |   | 
|                                                                 |  |                |     |  |      |  
|Adjusted net income, prior to restatement (See Note 2)           |  | $              | 133 |  |      | $ | 88 | 
|                                                                 |  |                |     |  |      |  

|                                                                 |  |                |     |   |      |   |     | 
|---------------------------------------------------------------- |  | -------------- | --- | - | ---- | - | --- | 
|                                                                 |  | Six Months     |    
|                                                                 |  | Ended June 30, |    
|                                                                 |  |                |    
|                                                                 |  | 2004           |     |   | 2003 |  
|                                                                 |  |                |     |   |      |  
|                                                                 |  | (in millions)  |    
|Net income, as reported in Form 10-Q, filed on
    July 16, 2004 |  | $              | 185 |   |      | $ | 215 | 
|Effect of adoption of FSP 106-2, net                             |  |                | (5  | ) |      |   |    | 
|                                                                 |  |                |     |   |      |  
|Adjusted net income, prior to restatement (See Note 2)           |  | $              | 180 |   |      | $ | 215 | 
|                                                                 |  |                |     |   |      |  

Earnings Per Share


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|                                    |  |                |         |  |                |  |         |      |  |  |         |  |  |  |         | 
|----------------------------------- |  | -------------- | ------- |  | -------------- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|                                    |  | Three Months   |         |  | Six Months     | 
|                                    |  | Ended June 30, |         |  | Ended June 30, | 
|                                    |  |                |         |  |                | 
|                                    |  | 2004           |         |  | 2003           |  |         | 2004 |  |  | 2003    | 
|                                    |  |                |         |  |                |  |         |      |  |  |         | 
|                                    |  | (in thousands) |        
|Weighted average shares outstanding |  |                | 560,893 |  |                |  | 560,291 |      |  |  | 560,617 |  |  |  | 559,928 | 
|Effect of dilutive securities       |  |                | 1,539   |  |                |  | 148     |      |  |  | 1,541   |  |  |  | 59      | 
|                                    |  |                |         |  |                |  |         |      |  |  |         | 
|Diluted shares outstanding          |  |                | 562,432 |  |                |  | 560,439 |      |  |  | 562,158 |  |  |  | 559,987 | 
|                                    |  |                |         |  |                |  |         |      |  |  |         | 



|                         |  |                |        |  |                |  |        |      |  |  |        |  |  |  |        | 
|------------------------ |  | -------------- | ------ |  | -------------- |  | ------ | ---- |  |  | ------ |  |  |  | ------ | 
|                         |  | Three Months   |        |  | Six Months     | 
|                         |  | Ended June 30, |        |  | Ended June 30, | 
|                         |  |                |        |  |                | 
|                         |  | 2004           |        |  | 2003           |  |        | 2004 |  |  | 2003   | 
|                         |  |                |        |  |                |  |        |      |  |  |        | 
|                         |  | (in thousands) |       
|Anti-dilutive securities |  |                | 72,579 |  |                |  | 83,829 |      |  |  | 72,815 |  |  |  | 87,078 | 
|                         |  |                |        |  |                |  |        |      |  |  |        | 



Stock-Based Compensation




|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |      |  |   |     |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------------------------ | --- | ---- | -------------- | - | --- | ---- |  | - | ---- | ---- |  | - | --- | ---- | 
|                                                                                                                                            |                                 | Three Months             |     |      | Six Months     |  
|                                                                                                                                            |                                 | Ended June 30,           |     |      | Ended June 30, |  
|                                                                                                                                            |                                 |                          |     |      |                |  
|                                                                                                                                            |                                 | 2004                     |     |      | 2003           |   |     | 2004 |  |   | 2003 |     
|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |     
|                                                                                                                                            |                                 | (in millions, except per |    
|                                                                                                                                            |                                 | share amounts)           |    
|Net income, as reported                                                                                                                     |                                 | $                        | 143 |      |                | $ | 106 |      |  | $ | 206  |      |  | $ | 230 |     
|Add: Stock-based compensation expense recognized, net of related
    tax effects                                                            |                                 |                          | 3   |      |                |   | 2   |      |  |   | 5    |      |  |   | 3   |     
|Less: Total stock-based employee compensation expense determined
    under fair value method for all awards, net of related tax
    effects |                                 |                          | (6  | )    |                |   | (6  | )    |  |   | (10  | )    |  |   | (10 | )   
|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |     
|Pro forma net income                                                                                                                        |                                 | $                        | 140 |      |                | $ | 102 |      |  | $ | 201  |      |  | $ | 223 |     
|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |     
|Earnings per share:                                                                                                                         |                                 |                          |     |      |                |   |     |      |  |   |      |      |  |   |     |     
|                                                                                                                                            | Basic and diluted  as reported |                          | $   | 0.25 |                |   | $   | 0.19 |  |   | $    | 0.37 |  |   | $   | 0.41 | 
|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |     
|                                                                                                                                            | Basic and diluted  pro forma   |                          | $   | 0.25 |                |   | $   | 0.18 |  |   | $    | 0.36 |  |   | $   | 0.40 | 
|                                                                                                                                            |                                 |                          |     |      |                |   |     |      |  |   |      |     



8



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##### Table of Contents





Reclassifications




|   |            
|-- | -----------
|2. | RESTATEMENT







9



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##### Table of Contents





|                                                                                        |              |                                                    |     |   |      |   |     |   |    | 
|--------------------------------------------------------------------------------------- | ------------ | -------------------------------------------------- | --- | - | ---- | - | --- | - | -- | 
|                                                                                        |              | Three Months                                       |    
|                                                                                        |              | Ended June 30,                                     |    
|                                                                                        |              |                                                    |    
|                                                                                        |              | 2004                                               |     |   | 2003 |  
|                                                                                        |              |                                                    |     |   |      |  
|                                                                                        |              | (in millions)                                      |    
|As previously reported net income, adjusted for FSP 106-2
    adoption
    (See Note 1) |              | $                                                  | 133 |   |      | $ | 88  |  
|                                                                                        | Adjustments: |                                                    |     |   |      |   |     |   |   
|                                                                                        |              | Information technology service provider rebates(a) |     |   | 4    |   |     |   | 3  | 
|                                                                                        |              | Non-IT supplier rebates(a)                         |     |   | 1    |   |     |   | 1  | 
|                                                                                        |              | Deferred expense recognition for IT services(b)    |     |   | (1   | ) |     |   |   | 
|                                                                                        |              | Indirect material dispositions(c)                  |     |   | 1    |   |     |   | 1  | 
|                                                                                        |              | Warranty settlements with former parent company(d) |     |   | 5    |   |     |   | 5  | 
|                                                                                        |              | Period-end accruals and out of period items(e)     |     |   | (2   | ) |     |   | 3  | 
|                                                                                        |              | Other(f)                                           |     |   | 4    |   |     |   | 15 | 
|                                                                                        |              |                                                    |     |   |      |  
|Total                                                                                   |              |                                                    | 12  |   |      |   | 28  |  
|Related tax effects                                                                     |              |                                                    | (2  | ) |      |   | (10 | )
|                                                                                        |              |                                                    |     |   |      |  
|Total adjustments, net of tax                                                           |              |                                                    | 10  |   |      |   | 18  |  
|                                                                                        |              |                                                    |     |   |      |  
|Net income, as restated                                                                 |              | $                                                  | 143 |   |      | $ | 106 |  
|                                                                                        |              |                                                    |     |   |      |  

|                                                                                        |              |                                                    |     |   |      |   |     |   |    |  
|--------------------------------------------------------------------------------------- | ------------ | -------------------------------------------------- | --- | - | ---- | - | --- | - | -- | -
|                                                                                        |              | Six Months                                         |    
|                                                                                        |              | Ended June 30,                                     |    
|                                                                                        |              |                                                    |    
|                                                                                        |              | 2004                                               |     |   | 2003 |  
|                                                                                        |              |                                                    |     |   |      |  
|                                                                                        |              | (in millions)                                      |    
|As previously reported net income, adjusted for FSP 106-2
    adoption
    (See Note 1) |              | $                                                  | 180 |   |      | $ | 215 |  
|                                                                                        | Adjustments: |                                                    |     |   |      |   |     |   |   
|                                                                                        |              | Information technology service provider rebates(a) |     |   | 7    |   |     |   | 5  |  
|                                                                                        |              | Non-IT supplier rebates(a)                         |     |   | 4    |   |     |   | 1  |  
|                                                                                        |              | Deferred expense recognition for IT services(b)    |     |   | 3    |   |     |   | 14 |  
|                                                                                        |              | Indirect material dispositions(c)                  |     |   | 1    |   |     |   | 1  |  
|                                                                                        |              | Warranty settlements with former parent company(d) |     |   | 9    |   |     |   | (1 | )
|                                                                                        |              | Period-end accruals and out of period items(e)     |     |   | 13   |   |     |   | (2 | )
|                                                                                        |              | Other(f)                                           |     |   | (4   | ) |     |   | 7  |  
|                                                                                        |              |                                                    |     |   |      |  
|Total                                                                                   |              |                                                    | 33  |   |      |   | 25  |  
|Related tax effects                                                                     |              |                                                    | (7  | ) |      |   | (10 | )
|                                                                                        |              |                                                    |     |   |      |  
|Total adjustments, net of tax                                                           |              |                                                    | 26  |   |      |   | 15  |  
|                                                                                        |              |                                                    |     |   |      |  
|Net income, as restated                                                                 |              | $                                                  | 206 |   |      | $ | 230 |  
|                                                                                        |              |                                                    |     |   |      |  

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##### Table of Contents







|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Information technology service provider and non-IT
    supplier rebates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|    |  | Delphi recognized the benefit of payments and credits received
    for entering into agreements for future information technology
    and other services or products in the periods in which the
    credits were received rather than in the periods when the
    contracted services were performed or the products were
    delivered. In addition, in some instances credits were
    recognized without sufficient certainty of the collectibility of
    the amounts recorded. Finally, Delphi did not recognize
    liabilities for certain payments from IT suppliers that were
    repayable.                                                                                                                                                                                                                                 
|   
|(b) |  | Deferred expense recognition for IT services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    |  | Delphi improperly deferred recognition of approximately
    $22 million of payments made for system implementation
    services in 2002. These payments should have been recorded as
    expense when services were rendered, rather than deferred and
    recorded as an expense in later periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(c) |  | Indirect material dispositions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|    |  | In 1999 and 2000, Delphi improperly recorded asset dispositions,
    in a series of transactions, amounting to approximately
    $145 million of indirect materials to an indirect material
    management company. The transactions should not have been
    accounted for as asset dispositions but rather as financing
    transactions, principally because Delphi had an obligation to
    repurchase such materials. In 2002 and 2003, Delphi repurchased
    certain indirect materials, recording a portion in its
    consolidated balance sheet and writing-off the balance of the
    material. In addition, at December 31, 2003 Delphi recorded
    the remaining materials in its consolidated balance sheet with a
    liability to the third party.                                                                    
|   
|(d) |  | Warranty settlements with former parent company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|    |  | In 2000 and 2001, Delphi improperly accounted for cash payments
    of $202 million to, and credits of $30 million
    received from, its former parent company in settlement of
    warranty obligations between the two companies. The cash
    payments should have been recorded as additional warranty
    expense rather than as a reduction of Delphis pension
    benefit obligations. The credits should have been recognized as
    a reduction to warranty obligations when utilized. The income
    impact of the warranty settlement adjustments is partially
    offset by the reversal of pension expense recognized in
    conjunction with the original accounting treatment. In addition,
    Delphi should have recognized a $10 million warranty
    obligation to its former parent in the first quarter of 2003.
|   
|(e) |  | Period-end Accruals and Out-of-period Adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|    |  | Delphi identified obligations that were not properly accrued for
    at the end of an accounting period. Additionally, as part of the
    restatement process, accounting adjustments were identified that
    were not recorded in the proper period. These items were not
    material to the financial statements as originally reported.
    However, as part of the restatement, these out-of-period
    adjustments are being recognized in the period in which the
    underlying transaction occurred.                                                                                                                                                                                                                                                                                                                         
|   
|(f) |  | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|    |  | Represents adjustments recorded to correct other miscellaneous
    items identified in the restatement, none of which are
    individually significant. Amounts include balance sheet
    reclassifications required to give effect to restatement
    adjustments, including the reclassification of tax-related
    liabilities from long-term to current of approximately
    $347 million and $407 million for the periods ended
    June 30, 2004 and December 31, 2003, respectively.                                                                                                                                                                                                                                                                                                                                            

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CONSOLIDATED STATEMENTS OF INCOME


|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |       |       |   |     |       |       | 
|---------------------------------------------------------------- | ------------------------------------------- | ------------------------ | --- | ----- | -------------------- | - | ------------- | -------- | ----- | - | ----------- | ----- | ----- | - | --- | ----- | ----- | 
|                                                                 |                                             | Three Months             |     |       | Three Months         |  
|                                                                 |                                             | Ended June 30, 2004      |     |       | Ended June 30, 2003  |  
|                                                                 |                                             |                          |     |       |                      |  
|                                                                 |                                             | As Originally            |     |       |                      |   | As Originally |          |       |  
|                                                                 |                                             | Reported(1)              |     |       | As Restated          |   |               | Reported |       |   | As Restated |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|                                                                 |                                             | (in millions, except     |     |       | (in millions, except |  
|                                                                 |                                             | per share amounts)       |     |       | per share amounts)   |  
|Net sales:                                                       |                                             |                          |     |       |                      |   |               |          |       |   |             |       |       |   |     |      
|                                                                 | General Motors and affiliates               |                          | $   | 4,134 |                      |   | $             | 4,133    |       |   | $           | 4,313 |       |   | $   | 4,314 |      
|                                                                 | Other customers                             |                          |     | 3,415 |                      |   |               | 3,409    |       |   |             | 2,781 |       |   |     | 2,777 |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|                                                                 |                                             | Total net sales          |     |       | 7,549                |   |               |          | 7,542 |   |             |       | 7,094 |   |     |       | 7,091 | 
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|Operating expenses:                                              |                                             |                          |     |       |                      |   |               |          |       |   |             |       |       |   |     |      
|                                                                 | Cost of sales, excluding items listed below |                          |     | 6,634 |                      |   |               | 6,607    |       |   |             | 6,240 |       |   |     | 6,209 |      
|                                                                 | Selling, general and administrative         |                          |     | 402   |                      |   |               | 410      |       |   |             | 422   |       |   |     | 419   |      
|                                                                 | Depreciation and amortization               |                          |     | 282   |                      |   |               | 283      |       |   |             | 260   |       |   |     | 263   |      
|                                                                 | Employee and product line charges           |                          |     | 32    |                      |   |               | 32       |       |   |             |      |       |   |     |      |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|                                                                 |                                             | Total operating expenses |     |       | 7,350                |   |               |          | 7,332 |   |             |       | 6,922 |   |     |       | 6,891 | 
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|Operating income                                                 |                                             |                          | 199 |       |                      |   | 210           |          |       |   | 172         |       |       |   | 200 |      
|                                                                 | Interest expense                            |                          |     | (52   | )                    |   |               | (55      | )     |   |             | (45   | )     |   |     | (49   | )    
|                                                                 | Other income (expense), net                 |                          |     | (3    | )                    |   |               | (5       | )     |   |             | (2    | )     |   |     | 1     |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|Income before income taxes, minority interest, and equity income |                                             |                          | 144 |       |                      |   | 150           |          |       |   | 125         |       |       |   | 152 |      
|                                                                 | Income tax expense                          |                          |     | (21   | )                    |   |               | (17      | )     |   |             | (42   | )     |   |     | (50   | )    
|                                                                 | Minority interest, net of tax               |                          |     | (15   | )                    |   |               | (15      | )     |   |             | (11   | )     |   |     | (11   | )    
|                                                                 | Equity income                               |                          |     | 25    |                      |   |               | 25       |       |   |             | 16    |       |   |     | 15    |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|Net income                                                       |                                             | $                        | 133 |       |                      | $ | 143           |          |       | $ | 88          |       |       | $ | 106 |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      
|Earnings per share                                               |                                             |                          |     |       |                      |   |               |          |       |   |             |       |       |   |     |      
|                                                                 | Basic and diluted                           |                          | $   | 0.24  |                      |   | $             | 0.25     |       |   | $           | 0.16  |       |   | $   | 0.19  |      
|                                                                 |                                             |                          |     |       |                      |   |               |          |       |   |             |      

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|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |        |        |   |     |        |        | 
|---------------------------------------------------------------- | ------------------------------------------- | ------------------------ | --- | ------ | -------------------- | - | ------------- | -------- | ------ | - | ----------- | ------ | ------ | - | --- | ------ | ------ | 
|                                                                 |                                             | Six Months               |     |        | Six Months           |  
|                                                                 |                                             | Ended June 30, 2004      |     |        | Ended June 30, 2003  |  
|                                                                 |                                             |                          |     |        |                      |  
|                                                                 |                                             | As Originally            |     |        |                      |   | As Originally |          |        |  
|                                                                 |                                             | Reported(1)              |     |        | As Restated          |   |               | Reported |        |   | As Restated |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|                                                                 |                                             | (in millions, except     |     |        | (in millions, except |  
|                                                                 |                                             | per share amounts)       |     |        | per share amounts)   |  
|Net sales:                                                       |                                             |                          |     |        |                      |   |               |          |        |   |             |        |        |   |     |       
|                                                                 | General Motors and affiliates               |                          | $   | 8,324  |                      |   | $             | 8,322    |        |   | $           | 8,868  |        |   | $   | 8,869  |       
|                                                                 | Other customers                             |                          |     | 6,636  |                      |   |               | 6,625    |        |   |             | 5,408  |        |   |     | 5,399  |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|                                                                 |                                             | Total net sales          |     |        | 14,960               |   |               |          | 14,947 |   |             |        | 14,276 |   |     |        | 14,268 | 
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|Operating expenses:                                              |                                             |                          |     |        |                      |   |               |          |        |   |             |        |        |   |     |       
|                                                                 | Cost of sales, excluding items listed below |                          |     | 13,214 |                      |   |               | 13,171   |        |   |             | 12,552 |        |   |     | 12,530 |       
|                                                                 | Selling, general and administrative         |                          |     | 805    |                      |   |               | 788      |        |   |             | 811    |        |   |     | 782    |       
|                                                                 | Depreciation and amortization               |                          |     | 561    |                      |   |               | 565      |        |   |             | 513    |        |   |     | 518    |       
|                                                                 | Employee and product line charges           |                          |     | 70     |                      |   |               | 70       |        |   |             |       |        |   |     |       |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|                                                                 |                                             | Total operating expenses |     |        | 14,650               |   |               |          | 14,594 |   |             |        | 13,876 |   |     |        | 13,830 | 
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|Operating income                                                 |                                             |                          | 310 |        |                      |   | 353           |          |        |   | 400         |        |        |   | 438 |       
|                                                                 | Interest expense                            |                          |     | (111   | )                    |   |               | (117     | )      |   |             | (90    | )      |   |     | (97    | )     
|                                                                 | Other income (expense), net                 |                          |     | (5     | )                    |   |               | (11      | )      |   |             | (3     | )      |   |     | (3     | )     
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|Income before income taxes, minority interest, and equity income |                                             |                          | 194 |        |                      |   | 225           |          |        |   | 307         |        |        |   | 338 |       
|                                                                 | Income tax expense                          |                          |     | (35    | )                    |   |               | (40      | )      |   |             | (101   | )      |   |     | (116   | )     
|                                                                 | Minority interest, net of tax               |                          |     | (26    | )                    |   |               | (26      | )      |   |             | (21    | )      |   |     | (22    | )     
|                                                                 | Equity income                               |                          |     | 47     |                      |   |               | 47       |        |   |             | 30     |        |   |     | 30     |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|Net income                                                       |                                             | $                        | 180 |        |                      | $ | 206           |          |        | $ | 215         |        |        | $ | 230 |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       
|Earnings per share                                               |                                             |                          |     |        |                      |   |               |          |        |   |             |        |        |   |     |       
|                                                                 | Basic and diluted                           |                          | $   | 0.32   |                      |   | $             | 0.37     |        |   | $           | 0.38   |        |   | $   | 0.41   |       
|                                                                 |                                             |                          |     |        |                      |   |               |          |        |   |             |       

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##### Table of Contents



CONSOLIDATED BALANCE SHEETS


|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |        |       |        | 
|------------------------------------------ | -------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- | -------------------------- | ------ | ----------------- | ------ | ------------- | -------- | ----- | ------ | ----------- | ------ | ----- | ------ | ------ | ------ | ----- | ------ | 
|                                           |                                                                                                                | June 30, 2004                                     |                            |        | December 31, 2003 |       
|                                           |                                                                                                                |                                                   |                            |        |                   |       
|                                           |                                                                                                                | As Originally                                     |                            |        |                   |        | As Originally |          |       |       
|                                           |                                                                                                                | Reported (1)                                      |                            |        | As Restated       |        |               | Reported |       |        | As Restated |       
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                | (in millions)                                     |                            |        | (in millions)     |       
|ASSETS                                    
|Current assets:                            |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|                                           | Cash and cash equivalents                                                                                      |                                                   | $                          | 666    |                   |        | $             | 681      |       |        | $           | 880    |       |        | $      | 893    |      
|                                           | Accounts receivable, net:                                                                                      |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |        |      
|                                           |                                                                                                                | General Motors and affiliates                     |                            |        | 2,463             |        |               |          | 2,469 |        |             |        | 2,326 |        |        |        | 2,327 |       
|                                           |                                                                                                                | Other customers                                   |                            |        | 1,618             |        |               |          | 1,657 |        |             |        | 1,438 |        |        |        | 1,501 |       
|                                           | Retained interest in receivables, net                                                                          |                                                   |                            | 586    |                   |        |               | 586      |       |        |             | 717    |       |        |        | 717    |      
|                                           | Inventories, net:                                                                                              |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |        |      
|                                           |                                                                                                                | Productive material, work-in-process and supplies |                            |        | 1,613             |        |               |          | 1,430 |        |             |        | 1,518 |        |        |        | 1,318 |       
|                                           |                                                                                                                | Finished goods                                    |                            |        | 464               |        |               |          | 464   |        |             |        | 478   |        |        |        | 478   |       
|                                           | Deferred income taxes                                                                                          |                                                   |                            | 354    |                   |        |               | 360      |       |        |             | 420    |       |        |        | 367    |      
|                                           | Prepaid expenses and other                                                                                     |                                                   |                            | 242    |                   |        |               | 247      |       |        |             | 269    |       |        |        | 269    |      
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                |                                                   | Total current assets       |        |                   | 8,006  |               |          |       | 7,894  |             |        |       | 8,046  |        |        |       | 7,870  | 
|Long-term assets:                          |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|                                           | Property, net                                                                                                  |                                                   |                            | 5,938  |                   |        |               | 6,147    |       |        |             | 6,167  |       |        |        | 6,399  |      
|                                           | Deferred income taxes                                                                                          |                                                   |                            | 3,964  |                   |        |               | 4,077    |       |        |             | 3,835  |       |        |        | 3,961  |      
|                                           | Goodwill                                                                                                       |                                                   |                            | 791    |                   |        |               | 791      |       |        |             | 776    |       |        |        | 773    |      
|                                           | Other intangible assets                                                                                        |                                                   |                            | 48     |                   |        |               | 47       |       |        |             | 79     |       |        |        | 81     |      
|                                           | Pension intangible assets                                                                                      |                                                   |                            | 1,167  |                   |        |               | 1,167    |       |        |             | 1,167  |       |        |        | 1,167  |      
|                                           | Other                                                                                                          |                                                   |                            | 842    |                   |        |               | 830      |       |        |             | 834    |       |        |        | 815    |      
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                |                                                   | Total assets               |        | $                 | 20,756 |               |          | $     | 20,953 |             |        | $     | 20,904 |        |        | $     | 21,066 | 
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                          
|LIABILITIES AND STOCKHOLDERS EQUITY      
|Current liabilities:                       |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|                                           | Notes payable and current portion of long-term debt                                                            |                                                   | $                          | 527    |                   |        | $             | 660      |       |        | $           | 801    |       |        | $      | 892    |      
|                                           | Accounts payable                                                                                               |                                                   |                            | 3,306  |                   |        |               | 3,291    |       |        |             | 3,158  |       |        |        | 3,133  |      
|                                           | Accrued liabilities                                                                                            |                                                   |                            | 1,997  |                   |        |               | 2,400    |       |        |             | 2,232  |       |        |        | 2,684  |      
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                |                                                   | Total current liabilities  |        |                   | 5,830  |               |          |       | 6,351  |             |        |       | 6,191  |        |        |       | 6,709  | 
|Long-term liabilities:                     |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|                                           | Long-term debt                                                                                                 |                                                   |                            | 2,020  |                   |        |               | 2,071    |       |        |             | 2,022  |       |        |        | 2,152  |      
|                                           | Junior subordinated notes due to Delphi Trust I and II                                                         |                                                   |                            | 412    |                   |        |               | 412      |       |        |             | 412    |       |        |        | 412    |      
|                                           | Pension benefits                                                                                               |                                                   |                            | 3,545  |                   |        |               | 3,541    |       |        |             | 3,574  |       |        |        | 3,577  |      
|                                           | Postretirement benefits other than pensions                                                                    |                                                   |                            | 5,989  |                   |        |               | 5,989    |       |        |             | 5,697  |       |        |        | 5,697  |      
|                                           | Other                                                                                                          |                                                   |                            | 1,179  |                   |        |               | 868      |       |        |             | 1,271  |       |        |        | 905    |      
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                |                                                   | Total liabilities          |        |                   | 18,975 |               |          |       | 19,232 |             |        |       | 19,167 |        |        |       | 19,452 | 
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|Commitments and contingencies (Note 10)    |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|Minority interest                          |                                                                                                                |                                                   | 181                        |        |                   |        | 182           |          |       |        | 167         |        |       |        | 168    |       
|Stockholders equity:                      |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |        |       |        |        |       
|                                           | Common stock, $0.01 par value, 1,350 million shares
    authorized, 565 million shares issued in 2004 and 2003 |                                                   |                            | 6      |                   |        |               | 6        |       |        |             | 6      |       |        |        | 6      |      
|                                           | Additional paid-in capital                                                                                     |                                                   |                            | 2,660  |                   |        |               | 2,653    |       |        |             | 2,667  |       |        |        | 2,660  |      
|                                           | Retained earnings                                                                                              |                                                   |                            | 1,343  |                   |        |               | 1,124    |       |        |             | 1,241  |       |        |        | 997    |      
|                                           | Minimum pension liability                                                                                      |                                                   |                            | (2,118 | )                 |        |               | (2,006   | )     |        |             | (2,118 | )     |        |        | (2,006 | )    
|                                           | Accumulated other comprehensive loss, excluding minimum pension
    liability                                  |                                                   |                            | (230   | )                 |        |               | (177     | )     |        |             | (151   | )     |        |        | (136   | )    
|                                           | Treasury stock, at cost (3.8 million and 4.7 million
    shares in 2004 and 2003)                              |                                                   |                            | (61    | )                 |        |               | (61      | )     |        |             | (75    | )     |        |        | (75    | )    
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|                                           |                                                                                                                |                                                   | Total stockholders equity |        |                   | 1,600  |               |          |       | 1,539  |             |        |       | 1,570  |        |        |       | 1,446  | 
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       
|Total liabilities and stockholders equity |                                                                                                                | $                                                 | 20,756                     |        |                   | $      | 20,953        |          |       | $      | 20,904      |        |       | $      | 21,066 |       
|                                           |                                                                                                                |                                                   |                            |        |                   |        |               |          |       |        |             |       

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CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                 |  |                  |      |   |                  |   |               |          |  |   |             |   |  |   |       |  
|------------------------------------------------ |  | ---------------- | ---- | - | ---------------- | - | ------------- | -------- |  | - | ----------- | - |  | - | ----- | -
|                                                 |  | Six Months Ended |      |   | Six Months Ended |  
|                                                 |  | June 30, 2004    |      |   | June 30, 2003    |  
|                                                 |  |                  |      |   |                  |  
|                                                 |  | As Originally    |      |   |                  |   | As Originally |          |  |  
|                                                 |  | Reported(1)      |      |   | As Restated      |   |               | Reported |  |   | As Restated |  
|                                                 |  |                  |      |   |                  |   |               |          |  |   |             |  
|                                                 |  | (in millions)    |      |   | (in millions)    |  
|Cash and cash equivalents at beginning of period |  | $                | 880  |   |                  | $ | 893           |          |  | $ | 1,014       |   |  | $ | 1,028 |  
|Cash flows provided by operating activities      |  |                  | 564  |   |                  |   | 589           |          |  |   | 375         |   |  |   | 398   |  
|Cash flows used in investing activities          |  |                  | (403 | ) |                  |   | (385          | )        |  |   | (439        | ) |  |   | (431  | )
|Cash flows used in financing activities          |  |                  | (361 | ) |                  |   | (402          | )        |  |   | (249        | ) |  |   | (280  | )
|Effect of exchange rate changes on cash          |  |                  | (14  | ) |                  |   | (14           | )        |  |   | 29          |   |  |   | 29    |  
|                                                 |  |                  |      |   |                  |   |               |          |  |   |             |  
|Net decrease in cash and cash equivalents        |  |                  | (214 | ) |                  |   | (212          | )        |  |   | (284        | ) |  |   | (284  | )
|                                                 |  |                  |      |   |                  |   |               |          |  |   |             |  
|Cash and cash equivalents at end of period       |  | $                | 666  |   |                  | $ | 681           |          |  | $ | 730         |   |  | $ | 744   |  
|                                                 |  |                  |      |   |                  |   |               |          |  |   |             |  






|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As originally reported reflects the adoption of FSP 106-2 in the
    third quarter of 2004. Refer to Note 1 Basis of
    Presentation for further information.





|   |                                  
|-- | ---------------------------------
|3. | EMPLOYEE AND PRODUCT LINE CHARGES



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|                                  |                                           |                |     |      |            |   |   |       |  |   |     |      |     
|--------------------------------- | ----------------------------------------- | -------------- | --- | ---- | ---------- | - | - | ----- |  | - | --- | ---- | ----
|Employee and Product Line Charges |                                           | Employee Costs |     |      | Exit Costs |   |   | Total | 
|                                  |                                           |                |     |      |            |   |   |       | 
|Balance at January 1, 2004        |                                           | $              | 246 |      |            | $ | 5 |       |  | $ | 251 |     
|                                  | 2004 Charges                              |                |     | 70   |            |   |   |      |  |   |     | 70   |     
|                                  | Usage during the first six months of 2004 |                |     | (219 | )          |   |   |      |  |   |     | (219 | )(a)
|                                  |                                           |                |     |      |            |   |   |       | 
|Balance at June 30, 2004          |                                           | $              | 97  |      |            | $ | 5 |       |  | $ | 102 | (b) 
|                                  |                                           |                |     |      |            |   |   |       | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The total cash paid for the six months ended June 30, 2004
    was $215 million, as shown on our consolidated Statement of
    Cash Flows. The total usage for the three and six months ended
    June 30, 2004 was $74 and $219 million, respectively
    with $2 million and $6 million of non-cash special
    termination pension and postretirement benefits for the three
    months and six months ended June 30, 2004, respectively. In
    addition, we incurred $14 million and $66 million of
    cash costs associated with the 2004 Charges for the three and
    six months ended June 30, 2004, respectively, which were
    recorded in cost of sales.
|   
|(b) |  | This amount is included in accrued liabilities in the
    accompanying consolidated balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    





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



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





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|                                                                          |  |                    |        |   |                  |   |        |  
|------------------------------------------------------------------------- |  | ------------------ | ------ | - | ---------------- | - | ------ | -
|                                                                          |  | Three Months Ended |        |   | Six Months Ended |  
|                                                                          |  | June 30, 2004      |        |   | June 30, 2004    |  
|                                                                          |  |                    |        |   |                  |  
|                                                                          |  | (in millions)      |       
|Undivided interests sold at beginning of period                           |  | $                  | 325    |   |                  | $ | 323    |  
|Proceeds from new securitizations (sale of undivided interests)           |  |                    | 960    |   |                  |   | 1,685  |  
|Collections related to undivided interests sold(a)                        |  |                    | (1,071 | ) |                  |   | (1,944 | )
|Collections reinvested through sale of additional undivided
    interests |  |                    | 386    |   |                  |   | 536    |  
|                                                                          |  |                    |        |   |                  |  
|Undivided interests sold                                                  |  | $                  | 600    |   |                  | $ | 600    |  
|                                                                          |  |                    |        |   |                  |  






|    |  |                                                                                                                                                                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Of the collections received on the undivided interests sold, for
    the three months ended June 30, 2004, $685 million was
    remitted to the Conduits and $386 million was reinvested;
    and for the six months ended June 30, 2004,
    $1,408 million was remitted to the Conduits and
    $536 million was reinvested.



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

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|   |           
|-- | ----------
|5. | WARRANTIES



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|                                               |                                                                            |               |     |     |  
|---------------------------------------------- | -------------------------------------------------------------------------- | ------------- | --- | --- | -
|                                               |                                                                            | June 30,      |    
|                                               |                                                                            | 2004          |    
|                                               |                                                                            |               |    
|                                               |                                                                            | (in millions) |    
|Beginning accrual balance at December 31, 2003 |                                                                            | $             | 258 |    
|                                               | Provision for estimated warranties accrued during the six-month
    period |               |     | 52  |  
|                                               | Accruals for pre-existing warranties (including changes in
    estimates)  |               |     | 5   |  
|                                               | Settlements made during the six-month period (in cash or in kind)          |               |     | (53 | )
|                                               | Foreign currency translation                                               |               |     | (2  | )
|                                               |                                                                            |               |    
|Ending accrual balance at June 30, 2004        |                                                                            | $             | 260 |    
|                                               |                                                                            |               |    





|   |                                          
|-- | -----------------------------------------
|6. | PENSION AND OTHER POSTRETIREMENT BENEFITS





|                                   |                           |                             |      |                |                           |       |      |                  |                |   |               |     |       |      |     |     |      |   |      |      |  |   |      |     |  |   |     |     |  |   |     |     | 
|---------------------------------- | ------------------------- | --------------------------- | ---- | -------------- | ------------------------- | ----- | ---- | ---------------- | -------------- | - | ------------- | --- | ----- | ---- | --- | --- | ---- | - | ---- | ---- |  | - | ---- | --- |  | - | --- | --- |  | - | --- | --- | 
|                                   |                           |                             |      |                |                           | Other |      |                  |                |   |               |     | Other |     
|                                   |                           |                             |      | Postretirement |                           |       |      |                  | Postretirement |  
|                                   |                           | Pension Benefits            |      |                | Benefits                  |       |      | Pension Benefits |                |   | Benefits      |    
|                                   |                           |                             |      |                |                           |       |      |                  |                |   |               |    
|                                   |                           | Three Months Ended June 30, |      |                | Six Months Ended June 30, |      
|                                   |                           |                             |      |                |                           |      
|                                   |                           | 2004                        |      |                | 2003                      |       |      | 2004             |                |   | 2003          |     |       | 2004 |     |     | 2003 |   |      | 2004 |  |   | 2003 |    
|                                   |                           |                             |      |                |                           |       |      |                  |                |   |               |     |       |      |     |     |      |   |      |      |  |   |      |    
|                                   |                           | (in millions)               |      |                | (in millions)             |       |      | (in millions)    |                |   | (in millions) |    
|Service cost                       |                           | $                           | 71   |                |                           | $     | 65   |                  |                | $ | 44            |     |       | $    | 42  |     |      | $ | 142  |      |  | $ | 130  |     |  | $ | 89  |     |  | $ | 84  |    
|Interest cost                      |                           |                             | 174  |                |                           |       | 161  |                  |                |   | 123           |     |       |      | 115 |     |      |   | 349  |      |  |   | 322  |     |  |   | 251 |     |  |   | 230 |    
|Expected return on plan assets     |                           |                             | (180 | )              |                           |       | (162 | )                |                |   |              |     |       |      |    |     |      |   | (361 | )    |  |   | (324 | )   |  |   |    |     |  |   |    |    
|Amortization of prior service cost |                           |                             | 35   |                |                           |       | 23   |                  |                |   | (1            | )   |       |      |    |     |      |   | 70   |      |  |   | 46   |     |  |   | (2  | )   |  |   |    |    
|Amortization of net loss           |                           |                             | 36   |                |                           |       | 27   |                  |                |   | 29            |     |       |      | 18  |     |      |   | 71   |      |  |   | 54   |     |  |   | 64  |     |  |   | 36  |    
|Special termination benefits       |                           |                             | 2    |                |                           |       |     |                  |                |   |              |     |       |      |    |     |      |   | 5    |      |  |   |     |     |  |   | 1   |     |  |   |    |    
|                                   |                           |                             |      |                |                           |       |      |                  |                |   |               |     |       |      |     |     |      |   |      |      |  |   |      |    
|                                   | Net periodic benefit cost |                             | $    | 138            |                           |       | $    | 114              |                |   | $             | 195 |       |      | $   | 175 |      |   | $    | 276  |  |   | $    | 228 |  |   | $   | 403 |  |   | $   | 350 | 
|                                   |                           |                             |      |                |                           |       |      |                  |                |   |               |     |       |      |     |     |      |   |      |      |  |   |      |    



18



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|   |                                   
|-- | ----------------------------------
|7. | DERIVATIVES AND HEDGING ACTIVITIES





19



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|   |                     
|-- | --------------------
|8. | STOCKHOLDERS EQUITY



|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |     |   |   |     |    |  |   |       |     |     | 
|-------------------------------------------------------- | --------------------------------------------------------------------------------------- | ---------------------------------------------------- | --- | - | ---------- | - | - | -------- |  | ----------------- | -------- | -- | - | --------- | ----- | -------- | ----- | - | ------------- | ----- |  | - | ------ | --- | - | - | --- | -- |  | - | ----- | --- | --- | 
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  | Accumulated Other |          |    |   |           |      
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  | Comprehensive     |          |    |   |           |      
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  | Loss              |          |    |   |           |      
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |  
|                                                         |                                                                                         | Common Stock                                         |     |   | Additional |   |   |          |  | Minimum           |          |    |   |           |       |          | Total |  
|                                                         |                                                                                         |                                                      |     |   | Paid-in    |   |   | Retained |  |                   | Pension  |    |   |           |       | Treasury |       |   | Stockholders |      
|                                                         |                                                                                         | Shares                                               |     |   | Amount     |   |   | Capital  |  |                   | Earnings |    |   | Liability |       |          | Other |   |               | Stock |  |   | Equity |    
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |    
|                                                         |                                                                                         | (in millions)                                        |    
|Balance at January 1, 2004 (As restated, see
    Note 2) |                                                                                         |                                                      | 565 |   |            | $ | 6 |          |  | $                 | 2,660    |    |   | $         | 997   |          |       | $ | (2,006        | )     |  | $ | (136   | )   |   | $ | (75 | )  |  | $ | 1,446 |    
|                                                         | Net income (As restated, see Note 2)                                                    |                                                      |     |  |            |   |   |         |  |                   |          |   |   |           |       | 206      |       |   |               |      |  |   |        |    |   |   |     |   |  |   |       | 206 |    
|                                                         | Currency translation adjustments and other (As restated, see
    Note 2)                |                                                      |     |  |            |   |   |         |  |                   |          |   |   |           |       |         |       |   |               |      |  |   |        | (33 | ) |   |     |   |  |   |       | (33 | )  
|                                                         | Net change in unrecognized gain on derivative instruments (As
    restated, see Note 2) |                                                      |     |  |            |   |   |         |  |                   |          |   |   |           |       |         |       |   |               |      |  |   |        | (8  | ) |   |     |   |  |   |       | (8  | )  
|                                                         | Minimum pension liability adjustment                                                    |                                                      |     |  |            |   |   |         |  |                   |          |   |   |           |       |         |       |   |               |      |  |   |        |    |   |   |     |   |  |   |       |    |    
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |    
|                                                         |                                                                                         | Total comprehensive income (As restated, see Note 2) |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |     |   |   |     |    |  |   |       |     | 165 | 
|                                                         | Shares issued for employee benefit plans, net                                           |                                                      |     |  |            |   |   |         |  |                   |          | (7 | ) |           |       |         |       |   |               |      |  |   |        |    |   |   |     | 14 |  |   |       | 7   |    
|                                                         | Dividends                                                                               |                                                      |     |  |            |   |   |         |  |                   |          |   |   |           |       | (79      | )     |   |               |      |  |   |        |    |   |   |     |   |  |   |       | (79 | )  
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |    
|Balance at June 30, 2004 (As restated, see
    Note 2)   |                                                                                         |                                                      | 565 |   |            | $ | 6 |          |  | $                 | 2,653    |    |   | $         | 1,124 |          |       | $ | (2,006        | )     |  | $ | (177   | )   |   | $ | (61 | )  |  | $ | 1,539 |    
|                                                         |                                                                                         |                                                      |     |   |            |   |   |          |  |                   |          |    |   |           |       |          |       |   |               |       |  |   |        |    



|   |                  
|-- | -----------------
|9. | SEGMENT REPORTING



20



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|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |       |        | 
|--------------------------- | ------------------------------ | --------------- | - | ----- | ------------- |  | - | ------------- | ----- |  | ------------- | ---- | ----- | ------------- | - | ------ | ------ | - | - | ----- | ------ | 
|                            |                                | Dynamics,       |   |       |               |  |   |               |       |  |              
|                            |                                | Propulsion,     |   |       | Electrical,   |  |   | Automotive    |       |  |               |      |      
|                            |                                | Thermal &       |   |       | Electronics & |  |   | Holdings      |       |  |               |      |      
|                            |                                | Interior        |   |       | Safety        |  |   | Group         |       |  | Other(a)      |      |       | Total         |  
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            |                                | (in millions)   |   |       | (in millions) |  |   | (in millions) |       |  | (in millions) |      |       | (in millions) |  
|For the Three Months Ended: |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|June 30, 2004               |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|                            | Net sales to GM and affiliates |                 | $ | 2,130 |               |  | $ | 1,593         |       |  | $             | 410  |       |               | $ |       |        |   | $ | 4,133 |       
|                            | Net sales to other customers   |                 |   | 1,390 |               |  |   | 1,924         |       |  |               | 95   |       |               |   |       |        |   |   | 3,409 |       
|                            | Inter-sector net sales         |                 |   | 234   |               |  |   | 94            |       |  |               | 193  |       |               |   | (521   | )      |   |   |      |       
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            |                                | Total net sales |   | $     | 3,754         |  |   | $             | 3,611 |  |               | $    | 698   |               |   | $      | (521   | ) |   | $     | 7,542  | 
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            | Sector operating income (loss) |                 | $ | 87    | (b)           |  | $ | 322           | (b)   |  | $             | (131 | )(b)  |               | $ | (22    | )(b)   |   | $ | 256   | (b)   
|June 30, 2003(c)            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|                            | Net sales to GM and affiliates |                 | $ | 2,189 |               |  | $ | 1,666         |       |  | $             | 458  |       |               | $ | 1      |        |   | $ | 4,314 |       
|                            | Net sales to other customers   |                 |   | 1,196 |               |  |   | 1,480         |       |  |               | 101  |       |               |   |       |        |   |   | 2,777 |       
|                            | Inter-sector net sales         |                 |   | 217   |               |  |   | 105           |       |  |               | 206  |       |               |   | (528   | )      |   |   |      |       
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            |                                | Total net sales |   | $     | 3,602         |  |   | $             | 3,251 |  |               | $    | 765   |               |   | $      | (527   | ) |   | $     | 7,091  | 
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            | Sector operating income (loss) |                 | $ | 143   |               |  | $ | 272           |       |  | $             | (155 | )     |               | $ | (60    | )(d)   |   | $ | 200   | (d)   
|For the Six Months Ended:   |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|June 30, 2004               |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|                            | Net sales to GM and affiliates |                 | $ | 4,286 |               |  | $ | 3,203         |       |  | $             | 833  |       |               | $ |       |        |   | $ | 8,322 |       
|                            | Net sales to other customers   |                 |   | 2,715 |               |  |   | 3,718         |       |  |               | 192  |       |               |   |       |        |   |   | 6,625 |       
|                            | Inter-sector net sales         |                 |   | 454   |               |  |   | 215           |       |  |               | 399  |       |               |   | (1,068 | )      |   |   |      |       
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            |                                | Total net sales |   | $     | 7,455         |  |   | $             | 7,136 |  |               | $    | 1,424 |               |   | $      | (1,068 | ) |   | $     | 14,947 | 
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            | Sector operating income (loss) |                 | $ | 179   | (e)           |  | $ | 607           | (e)   |  | $             | (256 | )(e)  |               | $ | (41    | )(e)   |   | $ | 489   | (e)   
|June 30, 2003(c)            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |   |        |        |   |   |      
|                            | Net sales to GM and affiliates |                 | $ | 4,515 |               |  | $ | 3,388         |       |  | $             | 965  |       |               | $ | 1      |        |   | $ | 8,869 |       
|                            | Net sales to other customers   |                 |   | 2,334 |               |  |   | 2,863         |       |  |               | 201  |       |               |   | 1      |        |   |   | 5,399 |       
|                            | Inter-sector net sales         |                 |   | 415   |               |  |   | 217           |       |  |               | 421  |       |               |   | (1,053 | )      |   |   |      |       
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            |                                | Total net sales |   | $     | 7,264         |  |   | $             | 6,468 |  |               | $    | 1,587 |               |   | $      | (1,051 | ) |   | $     | 14,268 | 
|                            |                                |                 |   |       |               |  |   |               |       |  |               |      |       |               |  
|                            | Sector operating income (loss) |                 | $ | 288   |               |  | $ | 524           |       |  | $             | (292 | )     |               | $ | (82    | )(d)   |   | $ | 438   | (d)   






|    |  |                                                                                                                                                                                                                                           
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Other includes activity not allocated to the product sectors and
    elimination of inter-sector transactions.                                                                                                                            
|   
|(b) |  | Excludes the Second Quarter 2004 Charges of $12 million for
    Dynamics, Propulsion, Thermal & Interior,
    $24 million for Electrical, Electronics & Safety,
    $7 million for Automotive Holdings Group and
    $3 million for Other.
|   
|(c) |  | As originally disclosed, amounts have been reclassified from
    prior presentation to conform to our new sector alignment.                                                                                                               
|   
|(d) |  | Includes the second quarter 2003 legal settlement with a former
    supplier of $38 million.                                                                                                                                              
|   
|(e) |  | Excludes the 2004 Charges of $56 million for Dynamics,
    Propulsion, Thermal & Interior, $44 million for
    Electrical, Electronics & Safety, $29 million for
    Automotive Holdings Group and $7 million for Other.                  

21



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|    |                              
|--- | -----------------------------
|10. | COMMITMENTS AND CONTINGENCIES



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







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







22



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##### Table of Contents







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











23



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##### Table of Contents





|    |                  
|--- | -----------------
|11. | SUBSEQUENT EVENTS



24



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

Restatement






Executive Summary










25



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Results of Operations






| |                                                                             
| | ----------------------------------------------------------------------------
| | Three Months Ended June 30, 2004 versus Three Months
    Ended June 30, 2003

Net Sales.


|                                         |                        |                             |       |       |      |   |       |       | 
|---------------------------------------- | ---------------------- | --------------------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                         |                        | Three Months Ended June 30, |      
|                                         |                        |                             |      
|Product Sector                           |                        | 2004                        |       |       | 2003 |  
|                                         |                        |                             |       |       |      |  
|                                         |                        | (in millions)               |      
|Dynamics, Propulsion, Thermal & Interior |                        | $                           | 3,754 |       |      | $ | 3,602 |      
|Electrical, Electronics & Safety         |                        |                             | 3,611 |       |      |   | 3,251 |      
|Automotive Holdings Group                |                        |                             | 698   |       |      |   | 765   |      
|Other                                    |                        |                             | (521  | )     |      |   | (527  | )    
|                                         |                        |                             |       |       |      |  
|                                         | Consolidated net sales |                             | $     | 7,542 |      |   | $     | 7,091 | 
|                                         |                        |                             |       |       |      |  



Gross Margin.


Selling, General and Administrative.


Depreciation and Amortization.


Employee and Product Line Charges.


26



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Operating Income.




|                                         |                        |                |      |     |      |   |      |     | 
|---------------------------------------- | ---------------------- | -------------- | ---- | --- | ---- | - | ---- | --- | 
|                                         |                        | Three Months   |     
|                                         |                        | Ended June 30, |     
|                                         |                        |                |     
|Product Sector                           |                        | 2004           |      |     | 2003 |  
|                                         |                        |                |      |     |      |  
|                                         |                        | (in millions)  |     
|Dynamics, Propulsion, Thermal & Interior |                        | $              | 87   |     |      | $ | 143  |    
|Electrical, Electronics & Safety         |                        |                | 322  |     |      |   | 272  |    
|Automotive Holdings Group                |                        |                | (131 | )   |      |   | (155 | )  
|Other                                    |                        |                | (22  | )   |      |   | (60  | )  
|                                         |                        |                |      |     |      |  
|                                         | Subtotal               |                |      | 256 |      |   |      | 200 | 
|Second Quarter 2004 Charges(a)           |                        |                | (46  | )   |      |   |     |    
|                                         |                        |                |      |     |      |  
|                                         | Total operating income |                | $    | 210 |      |   | $    | 200 | 
|                                         |                        |                |      |     |      |  






|    |  |                                                                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents the Second Quarter 2004 Charges of $12 million
    for Dynamics, Propulsion, Thermal & Interior,
    $24 million for Electrical, Electronics & Safety,
    $7 million for Automotive Holdings Group and
    $3 million for Other.



Taxes.


27



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| |                                                                         
| | ------------------------------------------------------------------------
| | Six Months Ended June 30, 2004 versus Six Months
    Ended June 30, 2003

Net Sales.


|                                         |                        |                |        |        |      |   |        |        | 
|---------------------------------------- | ---------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                         |                        | Six Months     |       
|                                         |                        | Ended June 30, |       
|                                         |                        |                |       
|Product Sector                           |                        | 2004           |        |        | 2003 |  
|                                         |                        |                |        |        |      |  
|                                         |                        | (in millions)  |       
|Dynamics, Propulsion, Thermal & Interior |                        | $              | 7,455  |        |      | $ | 7,264  |       
|Electrical, Electronics & Safety         |                        |                | 7,136  |        |      |   | 6,468  |       
|Automotive Holdings Group                |                        |                | 1,424  |        |      |   | 1,587  |       
|Other                                    |                        |                | (1,068 | )      |      |   | (1,051 | )     
|                                         |                        |                |        |        |      |  
|                                         | Consolidated net sales |                | $      | 14,947 |      |   | $      | 14,268 | 
|                                         |                        |                |        |        |      |  



Gross Margin.


Selling, General and Administrative.


Depreciation and Amortization.


Employee and Product Line Charges.


28



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|                                  |                                           |                |     |      |            |   |   |       |  |   |     |      |     
|--------------------------------- | ----------------------------------------- | -------------- | --- | ---- | ---------- | - | - | ----- |  | - | --- | ---- | ----
|Employee and Product Line Charges |                                           | Employee Costs |     |      | Exit Costs |   |   | Total | 
|                                  |                                           |                |     |      |            |   |   |       | 
|Balance at January 1, 2004        |                                           | $              | 246 |      |            | $ | 5 |       |  | $ | 251 |     
|                                  | 2004 Charges                              |                |     | 70   |            |   |   |      |  |   |     | 70   |     
|                                  | Usage during the first six months of 2004 |                |     | (219 | )          |   |   |      |  |   |     | (219 | )(a)
|                                  |                                           |                |     |      |            |   |   |       | 
|Balance at June 30, 2004          |                                           | $              | 97  |      |            | $ | 5 |       |  | $ | 102 | (b) 
|                                  |                                           |                |     |      |            |   |   |       | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The total cash paid for the six months ended June 30, 2004
    was $215 million, as shown on our consolidated Statement of
    Cash Flows. The total usage for the three and six months ended
    June 30, 2004 was $74 million and $219 million,
    respectively with $2 million and $6 million of
    non-cash special termination pension and postretirement benefits
    for the three months and six months ended June 30, 2004,
    respectively. In addition, we incurred $14 million and
    $66 million of cash costs associated with the 2004 Charges
    for the three and six months ended June 30, 2004,
    respectively, which were recorded in cost of sales.
|   
|(b) |  | This amount is included in accrued liabilities in the
    accompanying consolidated balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



29



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Operating Income.


|                                         |                        |                |      |     |      |   |      |     | 
|---------------------------------------- | ---------------------- | -------------- | ---- | --- | ---- | - | ---- | --- | 
|                                         |                        | Six Months     |     
|                                         |                        | Ended June 30, |     
|                                         |                        |                |     
|Product Sector                           |                        | 2004           |      |     | 2003 |  
|                                         |                        |                |      |     |      |  
|                                         |                        | (in millions)  |     
|Dynamics, Propulsion, Thermal & Interior |                        | $              | 179  |     |      | $ | 288  |    
|Electrical, Electronics & Safety         |                        |                | 607  |     |      |   | 524  |    
|Automotive Holdings Group                |                        |                | (256 | )   |      |   | (292 | )  
|Other                                    |                        |                | (41  | )   |      |   | (82  | )  
|                                         |                        |                |      |     |      |  
|                                         | Subtotal               |                |      | 489 |      |   |      | 438 | 
|2004 Charges(a)                          |                        |                | (136 | )   |      |   |     |    
|                                         |                        |                |      |     |      |  
|                                         | Total operating income |                | $    | 353 |      |   | $    | 438 | 
|                                         |                        |                |      |     |      |  






|    |  |                                                                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Represents the 2004 Charges of $56 million for Dynamics,
    Propulsion, Thermal & Interior, $44 million for
    Electrical, Electronics & Safety, $29 million for
    Automotive Holdings Group and $7 million for Other.



Taxes.


Liquidity and Capital Resources






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



30



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| |                            
| | ---------------------------
| | Available Credit Facilities





| |                             
| | ----------------------------
| | Other Financing Transactions






31



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| |                            
| | ---------------------------
| | Customer Financing Programs









| |               
| | --------------
| | Credit Ratings



32



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

Operating Activities.


Investing Activities.


Financing Activities.


Dividends.


Stock-Based Compensation.


|                                                       |       |                      |        |        |                     |   |                      |                     |  |  |        |        | 
|------------------------------------------------------ | ----- | -------------------- | ------ | ------ | ------------------- | - | -------------------- | ------------------- |  |  | ------ | ------ | 
|                                                       |       | Number of securities |        |        |                     |   | Number of securities |                    
|                                                       |       | to be issued upon    |        |        | Weighted-average    |   |                      | remaining available | 
|                                                       |       | exercise of          |        |        | exercise price of   |   |                      | for future issuance | 
|                                                       |       | outstanding options  |        |        | outstanding options |   |                      | under equity        | 
|Plan Category                                          |       | and rights(a)        |        |        | and rights(b)       |   |                      | compensation plans  | 
|                                                       |       |                      |        |        |                     |   |                      |                     | 
|                                                       |       | (in thousands)       |        |        |                     |   | (in thousands)       |                    
|June 30, 2004                                          |       |                      |        |        |                     |   |                      |                     |  |  |        |       
|Equity compensation plans approved by stockholders     |       |                      | 73,199 |        |                     | $ | 12.35                |                     |  |  | 25,165 |       
|Equity compensation plans not approved by stockholders |       |                      | 25,357 |        |                     | $ | 16.47                |                     |  |  |       |       
|                                                       |       |                      |        |        |                     |   |                      |                     | 
|                                                       | Total |                      |        | 98,556 |                     |   | $                    | 13.41               |  |  |        | 25,165 | 
|                                                       |       |                      |        |        |                     |   |                      |                     | 

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|                                                       |       |                      |        |        |                     |   |                      |                     |  |  |        |        | 
|------------------------------------------------------ | ----- | -------------------- | ------ | ------ | ------------------- | - | -------------------- | ------------------- |  |  | ------ | ------ | 
|                                                       |       | Number of securities |        |        |                     |   | Number of securities |                    
|                                                       |       | to be issued upon    |        |        | Weighted-average    |   |                      | remaining available | 
|                                                       |       | exercise of          |        |        | exercise price of   |   |                      | for future issuance | 
|                                                       |       | outstanding options  |        |        | outstanding options |   |                      | under equity        | 
|Plan Category                                          |       | and rights(a)        |        |        | and rights(b)       |   |                      | compensation plans  | 
|                                                       |       |                      |        |        |                     |   |                      |                     | 
|                                                       |       | (in thousands)       |        |        |                     |   | (in thousands)       |                    
|December 31, 2003                                      |       |                      |        |        |                     |   |                      |                     |  |  |        |       
|Equity compensation plans approved by stockholders     |       |                      | 64,536 |        |                     | $ | 12.87                |                     |  |  | 15,154 |       
|Equity compensation plans not approved by stockholders |       |                      | 25,900 |        |                     | $ | 16.48                |                     |  |  |       |       
|                                                       |       |                      |        |        |                     |   |                      |                     | 
|                                                       | Total |                      |        | 90,436 |                     |   | $                    | 13.95               |  |  |        | 15,154 | 
|                                                       |       |                      |        |        |                     |   |                      |                     | 






|    |  |                                                                                                                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Includes approximately 65.8 million outstanding options and
    approximately 7.4 million outstanding restricted stock
    units as of June 30, 2004 and 60.5 million outstanding
    options and approximately 4.0 million outstanding
    restricted stock units as of December 31, 2003.
|   
|(b) |  | Includes weighted-average exercise price of outstanding options
    only.                                                                                                                                                                                                                  

Outlook




Forward-Looking Statements




34



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








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





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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       |                   
|                                     |  |              |           |        |            | Total Number of Shares |       |                      | of Shares that may | 
|                                     |  | Total Number |           |        | Average    |                        |       | Purchased as Part of |                    |  | yet be Purchased   | 
|                                     |  | of Shares    |           |        | Price Paid |                        |       | Publicly Announced   |                    |  | Under the Plans or | 
|Period                               |  | Purchased    |           |        | per Share  |                        |       | Plans or Programs(a) |                    |  | Programs(a)        | 
|                                     |  |              |           |        |            |                        |       |                      |                    |  |                    | 
|April 1, 2004 through April 30, 2004 |  |              | 603,000   | (b)    |            | $                      | 9.99  |                      |                    |  |                   |  |  |  | 19,000,000 | 
|May 1, 2004 through May 31, 2004     |  |              | 1,463,166 | (b)(c) |            | $                      | 10.17 |                      |                    |  |                   |  |  |  | 19,000,000 | 
|June 1, 2004 through June 30, 2004   |  |              |          |        |            |                        |      |                      |                    |  |                   |  |  |  | 19,000,000 | 
|                                     |  |              |           |        |            |                        |       |                      |                    |  |                    | 
|Total                                |  |              | 2,066,166 |        |            | $                      | 10.12 |                      |                    |  |                   |  |  |  | 19,000,000 | 
|                                     |  |              |           |        |            |                        |       |                      |                    |  |                    | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | As part of Delphis stock repurchase program, in January of
    2004, 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 2005 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) |  | Includes open-market purchases by the trustee of Delphis
    401(k) plans to fund investments by employees in our common
    stock, one of the investment options available under such plans.                                                                                                                                                                                                                      
|   
|(c) |  | Amount also includes 338,166 shares of common stock that
    were withheld to satisfy our tax withholding obligations arising
    upon vesting of restricted stock units issued pursuant to our
    equity based compensation plan.                                                                                                                                                                                 






|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS





| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) The election of three directors to serve for a
    three-year term beginning at the 2004 Annual Stockholders
    Meeting and expiring at the 2007 Annual Stockholders
    Meeting. The vote with respect to each nominee was as follows:

|                              |  |     |             |  |          |  |             | 
|----------------------------- |  | --- | ----------- |  | -------- |  | ----------- | 
|Nominee                       |  | For |             |  | Withheld | 
|                              |  |     |             |  |          | 
|Oscar de Paula Bernardes Neto |  |     | 366,508,610 |  |          |  | 119,614,018 | 
|Dr. Bernd Gottschalk          |  |     | 367,044,788 |  |          |  | 119,077,840 | 
|John D. Opie                  |  |     | 367,204,719 |  |          |  | 118,917,909 | 

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| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) The ratification of the appointment of
    Deloitte & Touche LLP as Delphis independent
    public accountants for the year ending December 31, 2004:

|    |             |  |         |  |            |         |  |  |           | 
|--- | ----------- |  | ------- |  | ---------- | ------- |  |  | --------- | 
|For |             |  | Against |  |            | Abstain | 
|    |             |  |         |  |            |         | 
|    | 469,342,498 |  |         |  | 11,503,999 |         |  |  | 5,276,126 | 



| |                                                                      
| | ---------------------------------------------------------------------
| | (3) The approval of the Delphi Corporation Annual Incentive
    Plan:

|    |             |  |         |  |            |         |  |  |           | 
|--- | ----------- |  | ------- |  | ---------- | ------- |  |  | --------- | 
|For |             |  | Against |  |            | Abstain | 
|    |             |  |         |  |            |         | 
|    | 373,007,639 |  |         |  | 42,940,408 |         |  |  | 6,567,969 | 



| |                                                                         
| | ------------------------------------------------------------------------
| | (4) The approval of the Delphi Corporation Long-Term
    Incentive Plan:

|    |             |  |         |  |             |         |  |  |           | 
|--- | ----------- |  | ------- |  | ----------- | ------- |  |  | --------- | 
|For |             |  | Against |  |             | Abstain | 
|    |             |  |         |  |             |         | 
|    | 271,925,179 |  |         |  | 144,127,233 |         |  |  | 6,463,598 | 



| |                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | See Managements Discussion and Analysis 
    Stock-Based Compensation disclosure for a summary of shares
    available for issuance under the new Plan as compared to the
    previous plans, which expired in May 2004.



| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | (5) A stockholder proposal requesting the Board of
    Directors to approve the proposal for the redemption of
    Delphis stockholders rights plan:

|    |             |  |         |  |             |         |  |  |           | 
|--- | ----------- |  | ------- |  | ----------- | ------- |  |  | --------- | 
|For |             |  | Against |  |             | Abstain | 
|    |             |  |         |  |             |         | 
|    | 300,327,973 |  |         |  | 114,814,663 |         |  |  | 7,372,379 | 



| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | (6) A stockholder proposal requesting the Board of
    Directors to approve the proposal for the annual election of
    directors:

|    |             |  |         |  |             |         |  |  |           | 
|--- | ----------- |  | ------- |  | ----------- | ------- |  |  | --------- | 
|For |             |  | Against |  |             | Abstain | 
|    |             |  |         |  |             |         | 
|    | 315,009,485 |  |         |  | 100,335,866 |         |  |  | 7,170,735 | 



| |                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (7) A stockholder proposal requesting the Board of
    Directors to approve the proposal for the adoption of a code for
    Delphis international operations:

|    |            |  |         |  |             |         |  |  |            | 
|--- | ---------- |  | ------- |  | ----------- | ------- |  |  | ---------- | 
|For |            |  | Against |  |             | Abstain | 
|    |            |  |         |  |             |         | 
|    | 85,669,629 |  |         |  | 290,884,679 |         |  |  | 45,959,781 | 






|        |                                 
|------- | --------------------------------
|ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K



|        |    |              |  |                                                                                                                                                                                                                                                                           
|------- | -- | ------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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)          |  | By-laws of Delphi Automotive Systems Corporation, incorporated
    by reference to Exhibit 3.2 to Delphis Registration
    Statement on Form S-1 (Registration No. 333-67333).                                                                                           
|       
|        | 10 | (a)          |  | 364-Day Sixth Amended and Restated Competitive Advance and
    Revolving Credit Facility dated June 18, 2004 previously
    filed with the original filing of this quarterly report.                                                                                      
|       
|        | 10 | (b)          |  | 5-Year Second Amended and Restated Competitive Advance and
    Revolving Credit Facility dated June 18, 2004 previously
    filed with the original filing of this quarterly report.                                                                                      

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##### Table of Contents



|        |    |              |  |                                                                                                                                                                                  
|------- | -- | ------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|       
|        | 10 | (c)          |  | Delphi Corporation Annual Incentive Plan, filed as an exhibit to
    this report.*                                                                                               
|       
|        | 10 | (d)          |  | Delphi Corporation Long-Term Incentive Plan, incorporated by
    reference to Exhibit 4(d) to Delphis
    Registration Statement on Form S-8 (Registration
    No. 333-116729).*
|       
|        | 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.







| |                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | April 16, 2004, Form 8-K reporting under
    Item 12. Disclosure of Results of Operations and
    Financial Condition the filing of financial information
    containing highlighted financial data for the three months ended
    March 31, 2004.
|
| | April 30, 2004, Form 8-K reporting under
    Item 9. Regulation FD Disclosure
    disclosing the finalization of a seven-year Supplement to the
    2003 UAW-Delphi National Agreement.                                                           
|
| | May 18, 2004, Form 8-K reporting under
    Item 5. Other Events and Regulation FD
    Disclosure disclosing supplemental information pertaining
    to the Supplement to the 2003 UAW  Delphi National
    Agreement.                            

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##### Table of Contents






SIGNATURE




|              |  |                                                                                                
|------------- |  | -----------------------------------------------------------------------------------------------
|              |  | Delphi Corporation                                                                             
|              |  |                                                                                                
|              |  | (Registrant)                                                                                   
|             
|June 30, 2005 |  | /s/ John D. Sheehan                                                                            
|              |  |                                                                                                
|              |  | John D. Sheehan
    Acting Chief Financial Officer,
    Chief Accounting Officer and Controller

39



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##### Table of Contents






EXHIBIT INDEX


|        |    |              |  |                                                                                                                                             
|------- | -- | ------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |             
|Number  |    | Exhibit Name
|        |    |             
|        | 10 | (c)          |  | Delphi Corporation Annual Incentive Plan, filed as an exhibit to
    this report.*                                                          
|       
|        | 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.