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Borg-Warner Announces Expected Losses for Q3

9 September 1998

GM Strike Expected to Cost Borg-Warner Automotive 17 Cents in Third Quarter

    CHICAGO, Sept. 8 -- Borg-Warner Automotive, Inc.
today reported that strike-related production shutdowns at General Motors cost
the company approximately $15 million in sales during July, or about $.17 of
net earnings per share.  The overall strike cost to the company is estimated
at $25 million in sales and $.30 of net earnings per share.
    General Motors in North America represents about 15% of Borg-Warner
Automotive's combined worldwide sales.  GM is a major customer for the
company's engine and automatic transmission products.  About 300 people who
were furloughed at Borg-Warner Automotive facilities during the strike were
back at work within a few days of the strike's end on July 28.
    "Apart from the strike, we continue to believe that we can deliver solid
growth in the second half of 1998 and next year," said John F. Fiedler,
chairman and chief executive officer of Borg-Warner Automotive.  "While we
continue to be affected by the weak economy in Asia, we expect to benefit from
new programs and increased production for most of our major customers, from
new strategic initiatives and from a $10 million cost-cutting and productivity
improvement program."
    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.

    Statements contained in this news release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform
Act that are based on management's current expectations, estimates and
projections.  Words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar expressions are
intended to identify such forward-looking statements.  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, fluctuations in
demand for vehicles containing the Company's products, 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, 1997.