SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One)
[X] Annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934
For the fiscal year ended July 31, 1998
[ ] Transitional report pursuant to Section 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 001-13683
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States (1)
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Delco Remy International, Inc.
2902 Enterprise Drive
Anderson, Indiana 46013
(1) This initial Form 11-K filing is being filed concurrently with the Form S-8
Registration Statement for the "Delco Remy America Personal Saving Plan for
Hourly-Rate Employees in the United States."
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
REQUIRED INFORMATION
<S> <C>
A. Financial Statements and Schedules:
Report of Independent Auditors
Statement of Net Assets Available for
Benefits as of July 31, 1998 and 1997
Statement of Changes in Net Assets Available for
Benefits for the Years Ended July 31, 1998 and 1997
Notes to Financial Statements
Schedule of Assets
Held for Investment Purposes as of July 31, 1998
Schedule of Reportable Transactions
B. Exhibits
Consent of Independent Auditors
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustee (or other person who administers the employee benefit plan) has duly
caused this annual report to be signed on its behalf by the undersigned hereto
duly authorized.
Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States (See footnote 1, above.)
- -------------------------------------------------------------------
(Name of Plan)
Date: December 23, 1998
/s/ Roderick English
Roderick English,
Senior Vice President Human Resources and Communications
<PAGE>
<PAGE>
Financial Statements and Schedules
The Delco Remy America Personal Savings Plan
for Hourly-Rate Employees in the United States
(Formerly Delco Remy America
Hourly 401(k) Savings Plan)
Years ended July 31, 1998 and 1997
with Report of Independent Auditors
PAGE
<PAGE>
The Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States
(Formerly Delco Remy America
Hourly 401(k) Savings Plan)
Financial Statements and Schedules
Years ended July 31, 1998 and 1997
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors 1
Financial Statements
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 4
Notes to Financial Statements 6
Schedules
Schedule of Assets Held for Investment Purposes 11
Schedule of Reportable Transactions 12
</TABLE>
PAGE
<PAGE>
Report of Independent Auditors
Plan Administrator
The Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
We have audited the accompanying statements of net assets available for benefits
of the The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in
the United States (formerly Delco Remy America Hourly 401(k) Savings Plan) as of
July 31, 1998 and 1997, and the related statement of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its assets available for benefits
for the years then ended, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998 and reportable transactions
for the year then ended, are presented for purposes of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. The fund information in the statement of net assets available for
benefits and the statement of changes in assets available for benefits is
presented for purposes of additional analysis rather than to present the assets
available for benefits and changes in assets available for benefits for each
fund. The supplemental schedules and fund information have been subjected to
the auditing procedures applied in our audits of the financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
October 2, 1998
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Statement of Net Assets Available for Benefits, with Fund Information
July 31, 1998
Fund Information
<S> <C> <C> <C> <C> <C> <C> <C>
Vanguard
Vanguard Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity Templeton
Portfolio Corporate Balanced Index 500 Emerging Contra Foreign
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund Fund
--------------- ----------- ---------- ---------- ------------ --------- ----------
Assets:
Investments, at fair value: $ 2,561,671 $ 319,475 $1,382,429 $3,614,451 $ 2,383,541 $ 352,011 $ 124,383
Participant contribution receivable - - - - - - -
Net assets available for benefits $ 2,561,671 $ 319,475 $1,382,429 $3,614,451 $ 2,383,541 $ 352,011 $ 124,383
=============== =========== ========== ========== ============ ========= ==========
<S> <C> <C> <C>
Temporary
Loan Fund Fund Total
---------- ---------- -----------
Assets:
Investments, at fair value: $ 434,227 $ - $11,172,188
Participant contribution receivable - 74,713 74,713
Net assets available for benefits $ 434,227 $ 74,713 $11,246,901
========== ========== ===========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Statement of Net Assets Available for Benefits, with Fund Information
July 31, 1997
Fund Information
<S> <C> <C> <C> <C> <C> <C>
VANGUARD
FIXED
VANGUARD INCOME
MONEY SECURITIES FIDELITY
MARKET PRIME SHORT-TERM FIDELITY VANGUARD EMERGING
PORTFOLIO CORPORATE BALANCED INDEX TRUST GROWTH FIDELITY
RESERVES, INC. PORTFOLIO FUND 500 PORTFOLIO FUND CONTRA FUND
--------------- ----------- --------- -------------- ---------- ------------
ASSETS:
Investments, at fair value: $ 2,791,887 $ 252,244 $ 963,126 $ 2,274,089 $1,537,641 $ 206,182
Participant contribution receivable - - - - - -
LIABILITIES:
Refund of participant contribution payable - - - - - -
Net assets available for benefits $ 2,791,887 $ 252,244 $ 963,126 $ 2,274,089 $1,537,641 $ 206,182
=============== =========== ========= ============== ========== ============
<S> <C> <C> <C> <C>
TEMPLETON
FOREIGN TEMPORARY
FUND LOAN FUND FUND TOTAL
---------- ---------- ----------- -----------
ASSETS:
Investments, at fair value: $ 117,754 $ 274,381 $ - $8,417,304
Participant contribution receivable - - 74,713 74,713
LIABILITIES:
Refund of participant contribution payable - - (68,129) (68,129)
Net assets available for benefits $ 117,754 $ 274,381 $ 6,584 $8,423,888
========== ========== =========== ===========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Statement of Changes in Net Assets Available for Benefits, with Fund Information
Year ended July 31, 1998
Fund Information
<S> <C> <C> <C> <C> <C> <C>
Vanguard
Fixed
Vanguard Income
Money Securities Fidelity
Market Prime Short-Term Fidelity Vanguard Emerging
Portfolio Corporate Balanced Index 500 Growth Fidelity
Reserves, Inc. Portfolio Fund Trust Fund Contra Fund
---------------- ------------ ----------- ---------- ---------- ------------
Additions:
Employee voluntary contributions $ 770,617 $ 136,548 $ 393,933 $ 848,076 $ 546,101 $ 119,650
Rollover Contributions 24,409 730 10,903 14,595 13,444 622
Interest and dividends 144,204 19,191 129,058 58,853 358,283 304
---------------- ------------ ----------- ---------- ---------- ------------
Total additions 939,230 156,469 533,894 921,524 917,828 120,576
Deductions:
Benefits paid to participants 698,314 122,743 114,191 311,813 159,133 75,888
Administrative expenses 6,612 709 2,818 6,896 4,574 -
---------------- ------------ ----------- ---------- ---------- ------------
Total deductions 704,926 123,452 117,009 318,709 163,707 75,888
---------------- ------------ ----------- ---------- ---------- ------------
234,304 33,017 416,885 602,815 754,121 44,688
Interfund transfers (464,520) 34,264 (29,441) 279,754 7,990 51,700
Net appreciation in fair value
of investments - (50) 31,859 457,793 83,789 49,441
---------------- ------------ ----------- ---------- ---------- ------------
Net increase (decrease) (230,216) 67,231 419,303 1,340,362 845,900 145,829
Net assets available for benefits:
Beginning of year 2,791,887 252,244 963,126 2,274,089 1,537,641 206,182
End of year $ 2,561,671 $ 319,475 $1,382,429 $3,614,451 $2,383,541 $ 352,011
================ ============ =========== ========== ========== ============
<S> <C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
----------- ----------- ----------- -----------
Additions:
Employee voluntary contributions $ 78,306 $ - $ 74,713 $ 2,967,944
Rollover Contributions 2,118 - - 66,821
Interest and dividends 12,298 26,878 - 749,069
----------- ----------- ----------- -----------
Total additions 92,722 26,878 74,713 3,783,834
Deductions:
Benefits paid to participants 28,368 33,221 - 1,543,671
Administrative expenses - - - 21,609
----------- ----------- ----------- -----------
Total deductions 28,368 33,221 - 1,565,280
----------- ----------- ----------- -----------
64,354 (6,343) 74,713 2,218,554
Interfund transfers (39,352) 166,189 (6,584) -
Net appreciation in fair value
of investments (18,373) - - 604,459
----------- ----------- ----------- -----------
Net increase (decrease) 6,629 159,846 68,129 2,823,013
Net assets available for benefits:
Beginning of year 117,754 274,381 6,584 8,423,888
End of year $ 124,383 $ 434,227 $ 74,713 $11,246,901
=========== =========== =========== ===========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Statement of Changes in Net assets Available for Benefits, with Fund Information
Year ended July 31, 1997
Fund Information
<S> <C> <C> <C> <C> <C> <C>
Vanguard
Fixed
Vanguard Income
Money Securities Fidelity
Market Prime Short-Term Fidelity Vanguard Emerging
Portfolio Corporate Balanced Index 500 Growth Fidelity
Reserves, Inc. Portfolio Fund Trust Fund Contra Fund
---------------- ------------ ---------- ---------- ----------- ------------
Additions:
Employee voluntary contributions $ 890,551 $ 112,693 $ 305,739 $ 571,002 $ 492,978 $ 68,293
Rollover contributions 525,325 31,000 52,952 196,130 135,901 19,206
Interest and dividends 148,535 11,495 33,225 31,681 3,556 286
---------------- ------------ ---------- ---------- ----------- ------------
Total additions 1,564,411 155,188 391,916 798,813 632,435 87,785
Deductions:
Benefits paid to participants 1,025,173 35,626 168,340 211,030 171,321 19,938
Administrative expenses 6,171 443 1,540 3,188 2,628 -
Participant contribution refunds - - - - - -
---------------- ------------ ---------- ---------- ----------- ------------
Total deductions 1,031,344 36,069 169,880 214,218 173,949 19,938
---------------- ------------ ---------- ---------- ----------- ------------
533,067 119,119 222,036 584,595 458,486 67,847
Interfund transfers (423,470) (24,050) (29,201) 282,666 (153,998) 103,524
Net appreciation (depreciation) in
fair value of investments - 3,027 182,616 596,913 367,412 34,811
---------------- ------------ ---------- ---------- ----------- ------------
Net increase 109,597 98,096 375,451 1,464,174 671,900 206,182
Net assets available for benefits:
Beginning of year 2,682,290 154,148 587,675 809,915 865,741 -
End of year $ 2,791,887 $ 252,244 $ 963,126 $2,274,089 $1,537,641 $ 206,182
================ ============ ========== ========== =========== ============
<S> <C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
---------- ----------- ---------- ----------
Additions:
Employee voluntary contributions $ 49,042 $ - $ 74,713 $2,565,011
Rollover contributions 19,276 - - 979,790
Interest and dividends 532 17,876 - 247,186
---------- ----------- ---------- ----------
Total additions 68,850 17,876 74,713 3,791,987
Deductions:
Benefits paid to participants 14,710 49,625 - 1,695,763
Administrative expenses - - - 13,970
Participant contribution refunds - - 68,129 68,129
---------- ----------- ---------- ----------
Total deductions 14,710 49,625 68,129 1,777,862
---------- ----------- ---------- ----------
54,140 (31,749) 6,584 2,014,125
Interfund transfers 50,037 194,492 - -
Net appreciation (depreciation) in
fair value of investments 13,577 - - 1,198,356
---------- ----------- ---------- ----------
Net increase 117,754 162,743 6,584 3,212,481
Net assets available for benefits:
Beginning of year - 111,638 - 5,211,407
End of year $ 117,754 $ 274,381 $ 6,584 $8,423,888
========== =========== ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
The Delco Remy American Personal Savings Plan for
Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Notes to Financial Statements
July 31, 1998
1. Significant Accounting Policies
Investments
Investments are maintained at Keycorp Investment Management and Trust Services
("Trustee"). Investments in mutual funds are valued at the quoted market price
as of the most recent valuation date at the end of the plan year. Dividends on
mutual funds are recorded as investment income on the date received.
Investment options, which invest in mutual funds as described below, are
available to participants as follows:
Vanguard Money Market Prime Portfolio Reserves - This fund invests in Treasury
- ------------------------------------------------
Bills, commercial paper, certificates of deposit and other short-term securities
with an average maturity of less than four months.
Vanguard Fixed Income Securities Short-Term Corporate Portfolio Fund - This fund
- --------------------------------------------------------------------
invests in high quality, short-term bonds with an average maturity between one
and three years.
Fidelity Balanced Fund - This fund invests in common stocks and corporate,
- ------------------------
government and agency bonds.
Vanguard Index 500 Trust - This fund invests in common stocks of large
- ---------------------------
companies.
- ---------
Fidelity Emerging Growth Fund - This fund invests primarily in stocks of
- --------------------------------
developing companies that have demonstrated or are expected to achieve rapid
growth in earnings and/or revenues.
PAGE
<PAGE>
The Delco Remy American Personal Savings Plan for
Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Notes to Financial Statements (continued)
1. Significant Accounting Policies (continued)
Fidelity Contra Fund - This fund invests primarily in stocks of smaller
- ----------------------
companies that are undervalued.
Templeton Foreign Fund - This fund invests primarily in stocks of international
- -----------------------
companies consistency of bonds and other long-term debt instruments.
Temporary Fund serves an administrative function that temporarily holds funds
received into the Plan but not yet specifically allocated into the appropriate
investment fund due to timing. Interest earned in this fund is allocated back
to the other funds.
Administrative Expenses
Cash management fees are paid by the Plan. All other administrative expenses
are paid by Delco Remy America, Inc. ("Company").
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
2. Description of Plan
The Plan is a defined contribution plan which was established effective August
1, 1994 to provide retirement and other benefits to participants. The Plan
covers substantially all hourly employees of the Company, who have attained
seniority, which is defined in the applicable collective bargaining agreement.
The Plan is subject to the provisions of ERISA.
Employees may make voluntary contributions to their account through periodic
payroll deductions at rates from 1% to 25% of gross pay. In addition,
participants may elect to contribute from 1% to 100% of their share of the
Company profit sharing distribution. The profit sharing contribution and payroll
deductions combined cannot exceed the maximum contribution limitations
established annually by the Internal Revenue Service.
PAGE
<PAGE>
2. Description of Plan (continued)
Participants may designate that their contributions be deposited in any of seven
investment options designated by the Plan administrator. Participant
contributions vest immediately.
A participant may make a complete or partial hardship withdrawal of amounts held
in his or her account. The withdrawal must be necessary in light of immediate
and heavy financial needs of the participant. During the twelve months
following a withdrawal, employee contributions are suspended.
Participants may borrow from their accounts a minimum of $1,000 up to a maximum
of the lesser of $50,000 or one-half of the vested account balance. Loans bear
interest at a rate of one percent above the Plan Trustee's prime rate. Payments
on the outstanding loans must be made at least quarterly and the repayment
period can range from twelve months to five years, unless the loan is for the
purchase or construction of the participant's principle residence, in which case
the repayment period is ten years.
The Company has the right to amend or terminate the Plan.
More detailed information concerning the Plan may be found by consulting the
Summary Plan Description which is available from the Plan Administrator.
3. Investments
All investment information disclosed in the accompanying financial statements
and schedules in total and by fund, including investments held at July 31, 1998
and 1997, interest and dividends and net appreciation (depreciation) in fair
value of investments for the years ended July 31, 1998 and 1997, were obtained
or derived from information supplied to the plan administrator and certified as
complete and accurate by Keycorp Investment Management and Trust Services, the
trustee.
PAGE
<PAGE>
3. Investments (continued)
During the years ended July 31, 1998 and 1997, the Plan's investments in the
various funds (including investments purchased, sold, as well as held during the
year) appreciated (depreciated) in fair value as presented in the following
table. The fair value of individual investments that represent 5% of more of
plan assets are separately identified.
<TABLE>
<CAPTION>
<S> <C> <C>
Net Appreciation
(Depreciation)
in Fair Value Fair Value at
During Year End of Year
------------------ --------------
Year ended July 31, 1998:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 2,561,671
Vanguard Index 500 Trust 457,793 3,614,451
Fidelity Emerging Growth Fund 83,789 2,383,541
Fidelity Balanced Fund 31,859 1,382,429
Fidelity Contra Fund 49,441 352,011
Templeton Foreign Fund (18,373) 124,383
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio (50) 319,475
Fair value estimated:
Participant loans - 434,227
$ 604,459 $ 11,172,188
================== ==============
Year ended July 31, 1997:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 2,791,887
Vanguard Index 500 Trust 596,913 2,274,089
Fidelity Emerging Growth Fund 367,412 1,537,641
Fidelity Balanced Fund 182,616 963,126
Fidelity Contra Fund 34,811 206,182
Templeton Foreign Fund 13,577 117,754
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio 3,027 252,244
Fair value estimated:
Participant loans - 274,381
$ 1,198,356 $ 8,417,304
================== ==============
</TABLE>
PAGE
<PAGE>
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated May 21, 1998 stating that the Plan is qualified under section 401(a) of
the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Sponsor has
indicated that it will take the necessary steps, if any, to maintain the Plan's
qualified status.
5. Year 2000 (unaudited)
The Plan Sponsor has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting critical data
processing systems. The project also includes determining whether third party
service providers have reasonable plans in place to become year 2000 compliant.
The Plan Sponsor currently expects the project to be substantially complete by
early 1999. The Plan Sponsor does not expect this project to have a
significant effect on plan operations.
PAGE
<PAGE>
Schedules
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan
for Hourly-Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Line 27a - Schedule of Assets Held for Investment Purposes
Year ended July 31, 1998
<S> <C> <C> <C>
(B) (C) (D) (E)
DESCRIPTION OF
INVESTMENT
INCLUDING MATURITY
DATE, RATE OF
IDENTITY OF ISSUE, BORROWER, INTEREST, PAR OR CURRENT
LESSOR, OR SIMILAR PARTY MATURITY VALUE COST VALUE
- ---------------------------------------- -------------------- ----------- ------------
Mutual Funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. 2,561,671 units $ 2,561,671 $ 2,561,671
Vanguard Index 500 Trust 34,696 units 2,799,378 3,614,451
Fidelity Emerging Growth Fund 80,503 units 2,027,909 2,383,541
Fidelity Balanced Fund 83,008 units 1,224,646 1,382,429
Fidelity Contra Fund 20,023 units 286,106 352,011
Templeton Foreign Fund 12,327 units 131,564 124,383
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio 29,526 units 318,477 319,475
----------- ------------
9,349,751 10,737,961
Participant loans Terms from 1 to 5
years with interest
rates ranging from
9.25% to 10% - 434,227
----------- ------------
$ 9,349,751 $ 11,172,188
=========== ============
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
The Delco Remy America Personal Savings Plan for Hourly Rate Employees in the United States
(Formerly Delco Remy America Hourly 401(k) Savings Plan)
Item 27d - Schedule of Reportable Transactions
Year ended July 31, 1998
EIN: 35-1909405
Columns (e) and (f) not used as they are not applicable. Plan Number: 002
<S> <C> <C> <C> <C> <C> <C>
(H)
CURRENT
VALUE
(C) (D) (G) OF ASSET ON (I)
(A) (B) PURCHASE SELLING COST TRANSACTION NET
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE OF ASSET DATE GAIN (LOSS)
- --------------------------------- --------------------- ----------- ----------- ----------- ------------- ------------
Category (iii)
- ---------------------------------
Vanguard Money Market Prime Mutual fund
Portfolio Reserves, Inc. Purchases $ 1,156,234 $ - $ 1,156,234 $ 1,156,234 $ -
Sales - 1,395,512 1,359,512 1,359,512 -
Vanguard Fixed Income Securities Mutual fund
Short-Term Corporate Portfolio Purchases 309,403 - 309,403 309,403 -
Sales - 249,104 247,849 249,104 1,255
Fidelity Balanced Fund Mutual fund
Purchases 662,628 - 662,628 662,628 -
Sales - 274,650 242,404 274,650 32,246
Vanguard Index 500 Trust Mutual fund
Purchases 1,837,334 - 1,837,334 1,837,334 -
Sales - 949,293 729,754 949,293 219,539
Fidelity Emerging Growth Fund Mutual fund
Purchases 1,143,621 - 1,143,621 1,143,621 -
Sales - 381,041 350,859 381,041 30,182
E B Money Market Fund Mutual fund
Purchases 1,343,665 - 1,343,665 1,343,665 -
Sales - 1,348,790 1,348,790 1,348,790 -
<FN>
Category:
(i) Single transactions in excess of 5% of plan assets.
(ii) Series of transactions other than securities transactions.
(iii) Series of securities transactions.
(iv) Transactions with or in conjunction with a person if any single transaction with that person was in excess of 5%.
Note: There were no category (i), (ii), or (iv) transactions.
</TABLE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8) pertaining to The Delco Remy America Personal Savings Plan for Hourly-Rate
Employees in the United States of our report dated October 2, 1998 with respect
to the financial statements and schedules of The Delco Remy America Personal
Savings Plan for Hourly-Rate Employees in the United States included in this
Annual Report (Form 11-K) for the year ended July 31, 1998.
/s/ ERNST & YOUNG LLP
Indianapolis, Indiana
December 18, 1998
