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BorgWarner Wins Major Contract to Supply Transfer Cases to Kia Motor Company

BorgWarner Wins Major Contract to Supply Transfer Cases to Kia Motor Company

    CHICAGO, July 9 BorgWarner TorqTransfer Systems has won a
major contract to supply four-wheel drive transfer case systems to Kia Motor
Company of Korea.  The transfer cases will be applied to Kia's new sport-
utility vehicle, which is scheduled to launch in January of 2002.  Kia Motor
Company is part of the Hyundai Motor Company, which is also a major customer
of BorgWarner TorqTransfer Systems in Korea.  Both Kia and Hyundai are
experiencing significant growth.
    "We are delighted to begin this relationship with Kia, and look forward to
exceeding our new customer's expectations for leading-edge four-wheel drive
technology," said Tim Manganello, BorgWarner TorqTransfer Systems president.
    The transfer cases will be manufactured and assembled at the BorgWarner
TorqTransfer Systems facility in Margam, Port Talbot, UK.
    BorgWarner TorqTransfer Systems is the leading independent global designer
and producer of torque distribution and management systems -- transfer cases,
InterActive Torque Management (ITM) devices -- for four-wheel drive vehicles
for the sport-utility, light truck and crossover vehicle markets.  These
systems enhance driver security, driveability and handling.
    Chicago-based BorgWarner is a product leader in highly
engineered components and systems for vehicle powertrain applications
worldwide.  The company operates manufacturing and technical facilities in 46
locations in 13 countries.  Customers include Ford, DaimlerChrysler, General
Motors, Toyota, Caterpillar, Navistar International and VW Group.  The
Internet address for BorgWarner is http://www.bwauto.com .  For additional
information, contact BorgWarner Corporate Communications at (312) 322-8500.

    Statements contained in this news release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform
Act that are based on management's current expectations, estimates and
projections.  Words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar expressions are
intended to identify such forward-looking statements.  Forward-looking
statements are subject to risks and uncertainties, which could cause actual
results to differ materially from those projected or implied in the forward-
looking statements.  Such risks and uncertainties include:  fluctuations in
domestic or foreign automotive production, the continued use of outside
suppliers by original equipment manufacturers, fluctuations in demand for
vehicles containing the Company's products, general economic conditions, as
well as other risks detailed in the Company's filings with the Securities and
Exchange Commission, including the Cautionary Statements filed as Exhibit 99.1
to the Form 10-K for the fiscal year ended December 31, 2000.