$850 Million in New Borg-Warner Business Expected
28 October 1999
$850 Million in New Borg-Warner Business Expected; Engine Programs Drive Growth for 2000-2002CHICAGO, Oct. 27 -- Borg-Warner Automotive, Inc. today announced $850 million of expected new powertrain business for 2000 through 2002. About 70% of the new business is anticipated to be engine- related. The company is a product leader in highly engineered components and systems for engines, automatic transmissions and four-wheel drive systems for vehicle makers worldwide. "This is a great book of new business, significantly higher than past levels, and one that reflects our ongoing investment in research and development," said John F. Fiedler, chairman and chief executive officer of Borg-Warner Automotive. "New engine programs continue to be a strong growth catalyst for us because we are addressing the needs of our vehicle-maker customers to improve fuel performance and reduce emissions." Fiedler noted that sales related to turbochargers, engine timing systems and engine cooling and air management comprise about 70% of the anticipated new business which is expected to gain momentum over the three-year period. Sales of these engine-related products are driven by the demand for turbocharged direct-injected diesel engines in Europe, the move to chain- driven timing systems by Japanese vehicle makers, and growing concern for air quality worldwide. About 24% of the company's new business is expected to be generated by sales of automatic transmission components and systems. These include products for more efficient five- and six-speed automatic transmissions and continuously variable transmissions in Europe and Japan, and clutch and controls modules for new concept automated manual transmissions for 2002 model year passenger cars in Europe. The remainder of the new business is expected to come from sales of four-wheel drive components and systems, including the first electronic integrated torque management system for a front-wheel drive vehicle for model year 2002. Chicago-based Borg-Warner Automotive, Inc., operates 60 manufacturing and technical facilities in 13 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Caterpillar, Navistar, PSA, Renault and VW Group. The Internet address for Borg-Warner Automotive is: 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.