Borg-Warner Automotive Previews Growth Strategy, New Business
28 October 1997
Borg-Warner Automotive Previews Growth Strategy, New Business
NEW YORK, Oct. 28 -- Borg-Warner Automotive, Inc.
today previewed its growth strategy and announced new business opportunities
through the year 2000.
John F. Fiedler, chairman and chief executive officer, told investors
attending the Lehman Brothers Industrial Stocks Conference that the company
seeks to double its size over the next five to seven years through both
internal growth and selected acquisitions.
"Our name has been synonymous with pioneering innovation in the automotive
industry since 1928," said Mr. Fiedler. "Given our proud past, we are setting
a course to firmly establish Borg-Warner Automotive as the recognized
worldwide leader in advanced powertrain solutions well into the next century."
Borg-Warner Automotive executives and managers have been actively involved
during the past six months in creating a strategic framework for future
growth. Mr. Fiedler told investors that to sustain its track record of
consistently outperforming the automotive industry, the company will intensify
its focus on product leadership in developing advanced powertrain solutions
for worldwide original equipment manufacturers.
In addition to outlining its growth strategy, the company presented a list
of new automotive programs through the year 2000 that include the company's
powertrain technology. The new business is valued at approximately $600
million and includes components and systems for five-speed automatic
transmissions for cars and trucks, engine timing systems and four-wheel drive
chain for a variety of Japanese vehicles, diesel engine timing systems for
several European vehicles and air/fluid management devices for a number of
major manufacturers.
Mr. Fiedler indicated that a number of key factors are driving the
company's growth. These include its continued focus on integrating components
and systems in an environment of industry consolidation and increased reliance
on suppliers for research and development; the globalization of the industry
and opportunities offered in developing countries; the growth of automatic
transmissions and overhead cam engines throughout the world; the popularity of
four-wheel drive systems; increasing concerns for air quality and fuel
economy; and the move to direct injected diesel engines in Europe.
Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems primarily for automotive powertrain
applications. The company operates manufacturing facilities in 12 countries
serving the North American, European and Asian automotive markets.
Certain statements contained in this press release are "forward looking
statements" as contemplated by the Private Securities Litigation Reform Act of
1995. Such 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. Factors which could effect whether
or not these forward looking statements are realized are described in the
company's Securities and Exchange Commission filings.
SOURCE Borg-Warner Automotive, Inc.