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Borg-Warner Automotive Completes Sale Of Gallipolis, Ohio Unit to GKN Sinter Metals

11 October 1999

Borg-Warner Automotive Completes Sale Of Gallipolis, Ohio Unit to GKN Sinter Metals

    CHICAGO, Oct. 7 -- Borg-Warner Automotive, Inc.
announced that it has completed the sale of its forged powdered metal
operations in Gallipolis, Ohio to GKN Sinter Metals, Inc., a subsidiary of
UK-based GKN plc.  The transaction includes a long-term supply agreement
between the two companies.
    While financial terms of the transaction were not disclosed, Borg-Warner
Automotive said that 1998 sales for the Gallipolis facility were $40 million,
and the net book value of the assets sold, as of Dec. 31, 1998, was
$37.7 million.
    "This transaction benefits both companies as well as the people in
Gallipolis," said John F. Fiedler, Borg-Warner Automotive chairman and chief
executive officer.  "With the sale, we can focus on our core expertise in
designing and developing shift quality modules for automatic transmissions
with the assurance that a long-term supply agreement with GKN will provide us
the reliable, quality products we need.  The people of Gallipolis will benefit
from being part of an excellent company that has identified powder metals as a
core business for growth."
    The Gallipolis plant is a supplier to the automotive industry of forged
powdered metal races used in vehicle transmissions and torque converters.  The
facility currently employs about 400 people.  The plant is a supplier to
General Motors, DaimlerChysler and Borg-Warner.
    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 Dec. 31, 1998.