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Borg-Warner Automotive Completes German Purchase

4 November 1997

Borg-Warner Automotive Completes German Purchase; Intends to Separate Businesses

    CHICAGO, Nov. 4 -- Borg-Warner Automotive, Inc.
completed its purchase of the majority interest in AG Kuhnle, Kopp & Kausch
and announced that it intends to separate the German company's turbocharger
business from its turbomachinery operations.
    "Both the turbocharger and turbomachinery businesses are well-run
operations with excellent prospects for the future," said John F. Fiedler,
chairman and chief executive officer of Borg-Warner Automotive.  "However, our
primary interest is in AG Kuhnle, Kopp & Kausch's leading edge turbocharger
technology.  We're excited about the opportunities it offers us to reduce
automotive engine emissions and to improve fuel performance when added to our
current Borg-Warner Automotive products."
    AG Kuhnle, Kopp & Kausch turbocharger business supplies most European
diesel and spark ignition engine manufacturers with turbochargers for the
passenger car and commercial vehicle markets, as well as for industrial
locomotive and marine engines.  Its turbomachinery business manufactures
compressors and turbines for use in the energy and environmental support
markets.  Sales for 1996 totaled DM314 million of which DM210 million was from
the turbocharger business and DM104 million was from the turbomachinery
business.
    The turbocharger business gives Borg-Warner Automotive another strategic
technology with which to develop advanced powertrain solutions to reduce
emissions and improve fuel economy.  Borg-Warner Automotive's sales presence
in Europe is expected to double and will further increase the global aspects
of its operations.  Terms of the purchase were not disclosed.
    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.