Borg-Warner Automotive Produces Engine Timing System for Chrysler Corporation
1 December 1997
Borg-Warner Automotive Awarded Third Contract For Chrysler Engine Timing Chain System Business
CHICAGO, Dec. 1 -- Borg-Warner Automotive, Inc.
today announced that it has been selected to design and produce a complete
engine timing system for Chrysler Corporation's new overhead cam
3.7-liter, V6 engine for Dodge Jeeps and Trucks.
Borg-Warner Automotive expects to begin producing the timing systems by
2001. Volumes could reach 150,000 systems annually. This is the company's
third program with Chrysler to supply a complete timing-chain system for a new
overhead cam engine. The program represents additional Chrysler business for
Borg-Warner Automotive and brings the value of the three engine programs to
about $70 million per year.
Borg-Warner Automotive's Morse TEC group will engineer and manufacture the
system using technology similar to that recently developed for Chrysler's
2.7-liter and 4.7-liter overhead cam engines, which will be introduced in 1998
and 1999, respectively. The Morse TEC-engineered timing system consists of
numerous components including chains, sprockets, tensioners and guides. "Our
work with Chrysler on the 3.7-liter V6 cam drive is another example of the
type of success that can be achieved with a complete system supply
relationship," said Ronald M. Ruzic, president and general manager of
Borg-Warner Automotive Morse TEC Corporation. "Our commitment to Chrysler to
support their program needs and provide world-class timing systems remains a
top priority as Borg-Warner Automotive continues to sharpen its focus on
product leadership."
The new engine timing system will be manufactured at Morse TEC's Ithaca,
N.Y. facility. Recently, the company announced its plan to begin high-volume
production of powder metal sprockets in Ithaca with the initial aim of
supporting its timing-system business with Chrysler.
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.
Statements contained in this press release which are not historical facts
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. Such risks
and uncertainties include fluctuations in domestic or foreign automotive
production, the continued use of outside suppliers by original equipment
manufacturers, and 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 1O-K for
the fiscal year ended December 31, 1996.
Note: Borg-Warner Automotive press releases are available on the Internet
via Company News On-Call: http://www.prnewswire.com or via fax, 800-758-5804,
ext. 120941.
SOURCE Borg-Warner Automotive, Inc.