Borg-Warner Automotive to Sell Connecting Rod Business
28 July 1998
Borg-Warner Automotive Agrees to Sell Connecting Rod Business Unit
CHICAGO, July 27 -- Borg-Warner Automotive, Inc.
announced today that it has signed a letter of intent to sell its precision
forged powder metal connecting rod business unit to GKN Sinter Metals, Inc.
based in Auburn Hills, Mich., a subsidiary of UK-based GKN plc. The final
sale is subject to the completion of due diligence, negotiation of a purchase
agreement acceptable to both parties and review by the appropriate
governmental agencies.
"While the connecting rod business is experiencing rapid growth and is a
solid, process-oriented business, it is a much better strategic fit for GKN
than for us," said John F. Fiedler, Borg-Warner Automotive chairman and chief
executive officer. "Ownership by GKN should also be a real benefit to the
employees of the business because GKN has identified powder metals as a core
business for growth. For BWA, our resources are better spent on the core
technologies that will drive our growth and profitability in highly engineered
powertrain products and systems."
The connecting rod product line was acquired as part of Borg-Warner
Automotive's purchase of the Precision Forged Products Division (PFPD) from
Federal-Mogul Corporation in 1995. The PFPD purchase was made to position
Borg-Warner Automotive to provide complete one-way clutch systems for
automatic transmissions.
The connecting rod business plant is located in Romulus, Mich., and
employs 325 people. Capacity for producing connecting rod products has been
expanded at that location over the past year. Powder metal races for
automatic transmissions are produced at an expanded BWA plant in Gallipolis,
Ohio.
Chicago-based Borg-Warner Automotive, Inc. is a product leader of 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.