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Borg-Warner Automotive to Sell Torque Converter Assets

3 April 1998

Borg-Warner Automotive to Sell Torque Converter Assets

    CHICAGO, April 3 -- Borg-Warner Automotive, Inc.
has reached agreement to sell the remaining assets of their torque converter
business to Mannesmann-Sachs AG of Schweinfurt, Germany.  The assets include
designs, specifications, production equipment, and test machines used to
produce torque converters for industrial and medium-duty truck applications
for customers in the U.S. and Europe.
    Although Borg-Warner Automotive, Inc. was an early leader in the design
and manufacture of torque converters for the automotive industry, extensive
customer insourcing during the past 15 years has resulted in the business
becoming largely one of low-volume, niche applications.  In 1995, Borg-Warner
Automotive announced its intention to exit the business as the product line
was no longer considered strategic.
    The equipment will be transferred from the Borg-Warner Automotive facility
in Sterling Heights, Michigan into facilities operated by Mannesmann-Sachs.
It is expected that the transfer will be completed by the end of 1998.
    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.

SOURCE  Borg-Warner Automotive, Inc.