BorgWarner Well-Positioned to Meet Industry Demand as Manufacturers Switch From Timing Belts to Timing Chains

    CHICAGO, July 17 With major Japanese auto makers turning
to the use of timing chains for a significant percentage of their engine
programs, BorgWarner is well-positioned to meet the demand.  For one customer,
BorgWarner expects to supply more than one million of its small-pitch silent
chains.
    "The shift from belts to more durable timing chain systems makes engines
more fuel efficient and reduces emissions," said Roger Wood, President and
General Manager, BorgWarner Morse TEC.  "Our small-pitch silent-chain
technology for use in overhead cam engines is designed for low noise, power,
durability, and a compact package to accommodate smaller and smaller engines."
    The use of chain drives by Japanese automakers worldwide is expected to
grow by more than 50 percent -- from 3.6 million engines currently to about
8.5 million by 2005.  BorgWarner will produce these timing chains at its
facilities in Nabari City, Japan and Ithaca, New York.  The company recently
expanded its Nabari City operation by 50 percent in anticipation of demand for
its small-pitch silent chains.
    In the U.S., engine component longevity has become a key factor in engine
design with the Environmental Protection Agency (EPA) requiring emissions
equipment durability of up to 150,000 miles.

    BorgWarner Morse TEC is the global leader in the design and manufacturing
of automotive chain systems and components for engine timing, automatic
transmission and four-wheel drive applications.  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.