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BWA Completes Purchase of Turbocharger Business

11 December 1998

BWA Completes Purchase of Turbocharger Business; Expects Strong Fourth Quarter and 1999 Results

    CHICAGO, Dec. 10 -- Borg-Warner Automotive, Inc.
today announced that it has completed the purchase of the turbocharger systems
division of AG Kuhnle, Kopp & Kausch.
    "We are excited about the opportunities offered by 100% ownership of the
turbocharger business," said John F. Fiedler, chairman and chief executive
officer of Borg-Warner Automotive.  "We can leverage its outstanding
technology on a global basis with the rest of our engine management business."
    Fiedler added that the turbocharger business will be an important
contributor to expected double-digit growth in earnings for Borg-Warner
Automotive in 1999.  "We expect to end 1998 with fourth quarter performance at
the higher end of analysts' expectations, and believe this strength will carry
into 1999.  Engine technology, like turbocharged direct injected diesel
engines, is replacing four-wheel drive as the near-term growth catalyst for
our company.  Our presence in Europe is also very important, because that is
where much of the technology change is occurring."  He noted that the company
has no material exposure to South America and that its business in Asia has
stabilized.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems primarily for automotive powertrain
applications.  The company operates manufacturing 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.
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