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Borg-Warner Automotive Agrees to Purchase German Turbocharger Business

15 September 1997

Borg-Warner Automotive Agrees to Purchase German Turbocharger Business

    CHICAGO, Ill., Sept. 15 -- Borg-Warner Automotive, Inc.
has agreed to purchase the majority ownership share of Kuhnle,
Kopp & Kausch from Penske Corporation for an undisclosed sum.  The purchase of
the 63% interest in the German manufacturer of automotive and industrial
turbochargers and turbomachinery is subject to review by various regulatory
agencies.
    The German firm supplies most engine manufacturers in the world with
turbochargers for the light and commercial vehicle markets, and turbomachinery
for industrial applications.  Major customers include PSA, VW, Audi, Mercedes
Benz and MAN.  Sales for 1996 totaled DM314 million of which DM210 million was
from the turbocharger business and DM104 million was from the turbomachinery
business.
    "With the tightening of air quality standards in Europe and the growth of
direct injected diesel engines, a turbocharger business gives us another
strategic technology with which to develop advanced powertrain solutions to
reduce emissions and improve fuel economy," said John F. Fiedler, chairman and
chief executive officer of Borg-Warner Automotive.
    "The advantages of turbocharging are no longer just associated with power
improvement.  Emission reduction is a strong justification for using the
technology in both the commercial and passenger car markets."   Mr. Fiedler
noted that the worldwide market for turbochargers is estimated at 6 million
units and is expected to grow to over 8 million units by 2000.  The
acquisition is expected to double Borg-Warner Automotive's sales presence in
Europe, and continues to increase the global aspects of its operations.
    Kuhnle, Kopp & Kausch operates manufacturing plants in Kirchheimbolanden
and Frankenthal, Germany.  Subsidiaries and joint ventures are located in
Italy, France, India and South Africa.  The company employs 1,370 people.
Chicago-based Borg-Warner Automotive, Inc. is a product leader in 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.

SOURCE  Borg-Warner Automotive