Press Release

Borg-Warner Announces Dedication of New Parts Plant

09/27/96

Borg-Warner Automotive Dedicates New Transfer Case Manufacturing
Facility

CHICAGO, Sept. 25 -- Borg-Warner Automotive, Inc.
today dedicated a new transfer case manufacturing plant in
Seneca, South Carolina, at a ceremony held at the facility this
morning. The plant, which will be in full operation for a mid-year
1997 launch, will produce the four- wheel drive (4WD) transfer case
for the new Mercedes Benz sport-utility vehicle.

"As a leading global automotive supplier, Borg-Warner Automotive has
found a home in South Carolina and I'm very happy their future
includes our state," South Carolina Governor David M. Beasley
said. "Innovative, top-notch manufacturers like Borg-Warner greatly
enhance our state's economy, providing a quality workforce with
quality jobs and the hope for a brighter future."

"Responding to companies when they need a quality site is easy in
South Carolina because the entire state has access to major markets
and new customers through ports, highway and train systems," added
Secretary of Commerce Robert V. Royall, Jr. "Borg-Warner Automotive's
decision to locate in the state shows that our business atmosphere is
good for a company's bottom line."

Fred M. Kovalik, president and general manager of Borg-Warner
Automotive Powertrain Systems operating subsidiary, of which the
Seneca plant is a part, said, "Today's dedication of this world class
facility represents the culmination of many years of innovative
engineering and strategic planning by our company.  Borg-Warner
Automotive would like to thank our customer, Mercedes-Benz, for giving
us the opportunity to be a part of the development of its exciting new
All-Activity Vehicle. We would also like to thank the State of South
Carolina for helping us find an excellent location to produce this new
transfer case for Mercedes."

Mercedes-Benz selected Borg-Warner Automotive as the exclusive
designer and manufacturer of the 4WD transfer case for its new All
Activity Vehicle (AAV) in February 1993. In order to serve this
customer, a production base was chosen near the new Mercedes-Benz
U.S. manufacturing facility in Alabama. The current Mercedes-Benz
production target is estimated to be 65,000 vehicles annually.

Borg-Warner Automotive will provide a new two-speed, electronically
controlled 4WD transfer case designed for the Mercedes-Benz AAV. The
transfer case allows a vehicle to shift between two-wheel drive and
four-wheel drive. In addition to the new Mercedes-Benz business, the
company currently designs and produces transfer cases for the Ford
Explorer, Expedition and F-Series trucks as well as for GM, Isuzu,
Rover and Ssang Yong.

Chicago-based Borg-Warner Automotive, Inc. is a leading supplier of
highly engineered components and systems, primarily for automotive
drivetrain applications. The company operates manufacturing facilities
in 12 countries serving the North American, European and Asian
automotive markets.