BorgWarner Expects to Sell Two Non-Core Businesses

6 April 2000
BorgWarner Expects to Sell Two Non-Core Businesses

    CHICAGO, April 5 BorgWarner Inc. today
announced that it expects to divest two non-core business units and use the
proceeds for general corporate purposes, including repurchasing its stock on
the open market.
    The two units, Fuel Systems and Kysor-Westran HVAC, were part of the
Vehicle Products business of Kuhlman Corporation that BorgWarner acquired in
March of last year.  The units generated about $165 million in annual revenue
in 1999.
    "While both of these units are solid businesses, they do not fit our
strategic focus on powertrain technology," said John F. Fiedler, chairman and
CEO of BorgWarner.  "We continue to concentrate on core technologies that will
drive internal growth and profitability in highly engineered powertrain
products and systems.  We also believe that, given our earnings' potential,
our own stock is a very attractive investment at its current levels."  He
added that the company will only sell the business units if acceptable buyers
are found.
    The Fuel Systems unit, currently part of BorgWarner Air/Fluid Systems,
produces metal fuel tanks for the heavy truck market in North America.  It is
headquartered in Grand Rapids, Michigan and employs about 790 people.
Kysor-Westran HVAC, currently reporting though Morse TEC, serves the
agricultural/off highway market in North America and Europe.  It is
headquartered in Byron, Illinois and employs about 320 people.
    Chicago-based BorgWarner is a product leader in highly engineered
components and systems for vehicle powertrain applications worldwide.  The
company operates 60 manufacturing and technical facilities in 13 countries.
Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar,
Navistar, PSA and VW Group.  The Internet address for BorgWarner 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, 1999.