Press Release

Rockwell Automotive Announces Joint Venture in China

12/23/96

Rockwell Automotive Enters Joint Venture with China
National Heavy Truck


TROY, Mich., Dec. 19 -- Rockwell Heavy Vehicle Systems
has established a joint venture with China National Heavy Truck Corp.,
a leading manufacturer of heavy-duty trucks in China. Each company
holds equal interest in the joint venture named Jinan Rockwell Axle
Co., Ltd., that begins operations on January 1, 1997 in Jinan,
Shandong Province, China.

"This joint venture brings together the technological and
manufacturing strengths of two companies in order to offer leading
technology components to our customers in China, as well as the
growing Southeast Asian market," said Richard C. Quaid, president of
Rockwell's Off-Highway and Specialty Products business, and vice
chairman of Jinan Rockwell Axle Co., Ltd.

Jinan Rockwell Axle Co., Ltd. will produce Rockwell's RS-26-163 and
-183 single drive axles and RT-52-163 tandem axles, completely
assembled with brakes, hubs and drums; front and rear assembled axles
for Yellow River Truck 4x2 and 6x4 vehicles; and 6.5 ton front
non-drive steer axles for Steyr 4x2 and 6x4 vehicles.

In addition, the Automotive Industry Bureau has nominated Jinan
Rockwell Axle Co., Ltd. to be the primary supplier single-reduction
bus axles to the Chinese market.

Board members of the joint venture are:

* Zhang Shicheng, chairman
* Richard C. Quaid, vice chairman
* Han Ruilin, director
* Prakash R. Mulchandani, director
* Liu Guixiang, director
* Glenn A. Eggert, director

Newly-appointed executives responsible for the joint venture
operations include:

* Victor L. Scully, general manager, former general managing director
of Rockwell's Braseixos axle and brake manufacturing facility in Sao
Paulo, Brazil
* Liu Wen Zhi, deputy general manager, former factory director of the
Jinan Axle plant
* Daniel L. Koehler, chief engineer; former sales manager for
Rockwell's Off-Highway and Specialty Products business
* Eugene Heimerich, treasurer; former accounting supervisor for
Rockwell Automotive
* Tian Xi Shui, deputy treasurer; former chief accountant of the Jinan
Axle plant

Jinan Rockwell Axle Go., Ltd. will be based at the former Jinan Axle
plant, formerly owned and operated by China National Heavy Truck
Corporation.

Previously, a licensing agreement had been entered into in September
1993, with Rockwell Automotive and China National Automotive Industry
Import & Export Corporation, an agency acting on behalf of China
National Heavy Truck Corporation.

Rockwell's Heavy Vehicle Systems is a leading global supplier of
drivetrain components and systems for medium- and heavy-duty trucks,
trailers, off-highway equipment, and specialty vehicles including
military, coach and fire/rescue.

Rockwell's industrial automation, semiconductor systems, avionics and
communications systems and automotive component systems businesses are
leading providers of technology solutions to customers worldwide. The
company has annual revenues in excess of $10 billion and employs more
than 56,000 people.