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Borg-Warner Powertrain Gets Ford Quality Award

19 August 1998

Borg-Warner Automotive Powertrain Systems Receives Ford's Coveted Customer-Driven Quality Award

    DETROIT, Aug. 18 -- Borg-Warner Automotive Powertrain Systems
has received Ford Motor Company's Customer-Driven Quality Award  (CDQA) in
recognition of significant achievements during 1997 in total cost management,
delivery performance and quality improvements by a Ford/Borg-Warner Automotive
transfer case improvement team.  The announcement was made by Fred Kovalik,
president and general manager, Borg-Warner Automotive Powertrain Systems.
    "Ford's prestigious Customer-Driven Quality Award recognizes excellence in
areas that are at the very heart of our companies' shared objectives of
achieving leadership in quality and customer satisfaction," said Kovalik.
"The members of the Ford/Borg-Warner Automotive Transfer Case Improvement Team
are to be commended for this exceptional achievement."  Representatives of the
award-winning team were honored at a luncheon in Detroit.
    Kovalik said the CDQA is generally reserved for internal Ford teams.
However, the Borg-Warner Automotive contribution to the total cost management
process was deemed significant enough to be included among a select group of
internal Ford teams that qualified for the award.  "This bodes well for the
Ford/Borg-Warner Automotive partnership that continues to strengthen as we
work together to meet or exceed the expectations of our customers," he said.
    According to Tim Manganello, vice president of operations in the Muncie,
Indiana manufacturing facility where the transfer cases are produced, the team
used a total cost management process.  A target achievement plan was developed
which resulted in highly successful cost reductions in both design and
non-design.  The team also achieved significant improvements in delivery
performance, scrap reduction and first-time capability.
    "The award and the accomplishment it represents are particularly
noteworthy considering the Muncie facility was charged with increasing its
manufacturing capacity by roughly 20 percent during the period in which these
results were achieved," Manganello added.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader
in highly engineered components and systems primarily for automotive
drivetrain applications.  The company is the leading independent supplier of
four-wheel drive transfer cases for light truck and sport utility vehicles,
the fastest-growing segment of the North American auto industry.  Borg-Warner
Automotive operates manufacturing and technical support 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 10-K for
the fiscal year ended December 31, 1996.