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Borg-Warner Automotive Turbo Systems Expands European Operations

27 September 1999

Borg-Warner Automotive Turbo Systems Expands European Operations to Meet Increased Demand; Expects to Double Business

    KIRCHEIMBOLANDEN, Germany, Sept. 27 -- To capitalize on
increased demand for turbochargers and unite its acquired turbocharger
businesses, Borg-Warner Automotive is investing $65 million (US)
to expand its operations in Germany.  Ceremonies this weekend marked the
opening of one of the new facilities.
    The company expects to more than double the size of its $200 million (US)
European turbocharger business in the next four years, leading the growth of
that business worldwide.  The expanded facility combines Borg-Warner
Automotive's 3K-Warner European turbocharger business with the European
turbocharger business acquired from Kuhlman Corporation's Schwitzer Group.
    "The consolidation of our turbocharger businesses has created an important
new growth platform for BWA," said Ron Ruzic, group president and general
manager, BWA Morse TEC and Turbo Systems.  "The newly expanded operation will
be pivotal in our ability to support our current and prospective customers in
this key product area."
    "The explosive growth of direct-injected engines, fueled by concerns for
air quality and fuel economy, has created tremendous demand for our engine
products including turbochargers, air management components and chain-driven
engine timing systems," said John F. Fiedler, chairman and CEO of Borg-Warner
Automotive.  "We expect that half of our revenue in 2000 will be engine-
related.  As a global technology leader in these product areas, we are in an
optimum position to make the most of opportunities presented by the growing
European market," he said.
    Local officials, customers, employees and company officers gathered in
Kircheimbolanden for the grand opening of the expanded facility.  The new
building accommodates about 150 employees who will work in management, sales,
applications, design, purchasing, accounting and finance, information
technology and quality assurance for the group.
    The new Kirchheimbolanden facility is the most recent addition to the
company's expanding global advanced technology network.  In May 1998, BWA
Morse TEC opened a European headquarters in Arcore, Italy, at which engine
timing systems and powertrain drive chains are produced.  Last month the
company opened the Transmission Advanced Product Development Center for Europe
near Heidelberg, Germany, which will house advanced product development
activity for clutch systems and control modules for automatic and automated
manual transmissions for the European market.
    "We are committed to building on our strong history of product leadership
to create a strong future for BWA and its employees, shareholders and
customers worldwide," said Fiedler.  "Our impressive new turbocharger facility
is another tangible example of this commitment."
    Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems for vehicle powertrain applications
worldwide.  The company operates 54 manufacturing and technical facilities in
13 countries serving worldwide vehicle manufacturers.  Customers include Ford,
DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar, PSA and VW
Group.  Website at http://www.bwauto.com .

    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, 1998.