Borgwarner Signs Letter Of Intent With General Motors For Use Of NVG Muncie, Ind. Facility
FOR RELEASE: January 10, 2002Borgwarner Signs Letter Of Intent With General Motors For Use Of NVG Muncie, Ind. Facility
Chicago, Illinois; Detroit, Michigan, - BorgWarner Inc. and General Motors Corp. have opened talks relative to the future of the New Venture Gear manufacturing facility in Muncie, Indiana, its current product line and opportunities for growth in BorgWarner's four-wheel drive business.
BorgWarner has signed a letter of intent with GM regarding BorgWarner's use of the NVG facility in Muncie with an eye toward expanding its existing line of torque distribution and management products. The NVG Muncie operation currently employs 1,350 people and manufactures a variety of powertrain products including transmissions, differentials, gears and other automotive components. BorgWarner also operates a facility in Muncie, which employs 1,250 people and produces four-wheel drive systems.
BorgWarner's global customer base includes GM, which selected the company to supply four-wheel drive transfer case systems for several GM sport-utility and light-truck platforms beginning in 2002. BorgWarner is a leading global designer and producer of torque distribution and management systems.
Earlier, GM and DaimlerChrysler announced plans to restructure New Venture Gear. Following the restructuring, NVG's principal operations would include its current Syracuse (N.Y.) facility and the Roitzsch facility in Germany. Under the agreement with DaimlerChrysler, GM would manage the Muncie facility as an independent business.
BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 50 locations in 14 countries. In 2000, BorgWarner earned $133 million on sales of $2.65 billion, before restructuring charges. It employs about 13,000 people globally.
General Motors , the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. In 2000, GM earned $5 billion on sales of $183.3 billion, excluding special items. It employs about 363,000 people globally.
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.