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Borg-Warner Automotive Morse TEC Opens European Headquarters

14 May 1998

Borg-Warner Automotive Morse TEC Opens European Headquarters in Arcore, Italy

    ARCORE, Italy, May 14 -- Local and national governmental
officials, customers, employees and company officers gathered here on May 6
for the opening of a new headquarters for Borg-Warner Automotive Morse TEC
Europe.  The operation employs 166 people who develop and manufacture chain
systems and components for engines, automatic transmission and four-wheel
drive systems.
    One of the trends that is driving the expansion of Borg-Warner Automotive
in Europe is the dramatic growth projected for direct-injected (DI) diesel
engines.  The demands put on these types of engines make them prime candidates
for chain-based timing systems and air-management products.  Use of DI engines
by automakers is expected to increase from one million units in 1997 to 4.5
million units by 2001, in response to tighter emission requirements and fuel
economy needs.  This trend builds on the growing preference for the use of
timing chains over rubber timing belts.
    "As Borg-Warner Automotive marks 70 years in the automotive business this
year, we celebrate our long tradition of engineering innovation and
excellence," said John F. Fiedler, Borg-Warner Automotive chairman and CEO.
"We are committed to building on that product leadership to create a strong
future for the company and its employees, shareholders and customers.  This
event, and the impressive new facility it celebrates, offers compelling
evidence of that commitment."
    Morse TEC's presence in Europe began in 1987 with a joint venture between
Borg-Warner Automotive and Gruppo Regina, Regina-Warner Sp.A.  In 1996,
Borg-Warner Automotive's Morse TEC purchased 100 percent of the operation and
the name was changed to Morse TEC Europe Sp.A.
    "This grand opening represents the achievement of a major strategic goal
of establishing a European operation for the development, testing and
manufacture of advanced technology products and systems -- an operation with
the same leading-edge environment of the Morse TEC operations in North
America, Mexico and Asia," said Ronald M. Ruzic, president, Borg-Warner
Automotive Morse TEC.  "It is another significant milestone in the
distinguished history of Borg-Warner Automotive."  About 120 guests attended
the dedication of the 165,000-square-foot facility.
    "I commend Morse TEC's Arcore employees for the passion and dedication
they brought to the challenge of developing this exceptional facility," said
Alessandro Cavazzini, managing director, Morse TEC Europe.  "The result of
their hard work is an outstanding headquarters that will serve as the focal
point from which we will meet and exceed the expectations of our customers in
this important market," he said.
    Major customers of Morse TEC Europe include Ford Motor Company in Germany,
the United Kingdom, Brazil, and Spain; Rover and Lotus in the United Kingdom;
Fiat Auto, Ferrari and Magneti Marelli in Italy; Opel in Germany; Nissan and
Seat in Spain; and Ford, General Motors and Chrysler through Borg-Warner
Automotive Morse TEC.
    Morse TEC employs more than 1,800 people at facilities in Ithaca, New
York; Guadalajara, Mexico; Nabari City, Japan; Simcoe, Ontario, Canada; and
Tainan Shien, Taiwan, in addition to the new facility in Arcore, Italy.
    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 and technical
support facilities in 12 countries serving the North American, European and
Asian automotive markets.

SOURCE  Borg-Warner Automotive