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Borg-Warner Automotive Expects Weak Second Quarter

4 June 1998

Borg-Warner Automotive Expects Weak Second Quarter; Double Digit Growth in Second Half of 1998

    CHICAGO, June 3 -- Given continued production issues with
Ford F-150 trucks and the weak economy in Asia, Borg-Warner Automotive, Inc.
today advised that it expects its second quarter results to be
down from the 1997 second quarter.  Anticipated double-digit growth in the
second half of 1998, however, is expected to bring full-year earnings above
last year's level.
    The company estimates that second quarter earnings per share will be 20%
to 25% below the $1.23 per share earned in the 1997 second quarter.
    "We continue to be very disappointed with Ford F-150 trucks," said John F.
Fiedler, chairman and chief executive officer of Borg-Warner Automotive.  "Not
only is their truck production down, but four-wheel drive installation rates
are down as well.  An impact of about $0.10 per share is anticipated in the
second quarter because of an estimated 45% decline in our shipments for the
F-150.
    "The weak Asian economy also continues to affect a number of our
operations.  Sales of vehicles with higher-end features with BWA content such
as automatic transmissions and four-wheel drive are depressed.  This trend is
expected to have an adverse effect of about $0.20 per share in the quarter."
    Fiedler continued: "To counter these conditions and strengthen our
business over the next few years, we are taking a number of aggressive
actions.  These include a $10 million cost cutting effort across all of our
operations to reduce material costs and improve productivity.  Because Asia
remains an important long-term growth opportunity for Borg-Warner Automotive,
we are re-sourcing production from other areas to use open Asian capacity.  We
are determined to keep Borg-Warner Automotive on a growth course despite the
difficult conditions under which we are currently operating."
    Fiedler noted that the company expects to return to its historic growth
pattern in the second half of the year.  Earnings are anticipated to be up 15%
for the last six months of 1998.  The improvement in operating conditions is
expected to come from the launch of a new automatic transmission program at
Chrysler with increased content for the company, improved sales of F-150 truck
products to Ford, an increase in production of four-wheel drive systems for
Mercedes and continued stability in the overall auto market.  With this growth
in the second half, full-year 1998 earnings are expected to be up an estimated
$0.05 per share from $4.31 per share in 1997.
    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, 1997.