---

Toyota Hybrid Mill Uses Borg-Warner's Custom-Designed Drive Chain

11 August 1998

Borg-Warner Automotive Custom-Designed Drive Chain Part of New Toyota Hybrid Engine

    CHICAGO, Aug. 10 -- In keeping with its 70-year tradition of
product leadership and innovation, Borg-Warner Automotive has
identified a new application for its custom-designed drive chain as part of
the engine system for Toyota's first electric-and-gasoline hybrid vehicle, the
Prius.
    Concerns about fuel economy and emission are driving the development of
alternative technologies in the form of such vehicles, which combine electric
and internal combustion powertrains to achieve extremely high levels of fuel
economy and low emission levels.  The Prius goes twice as far on a gallon of
gasoline as an equivalent gasoline-powered model, yet does not suffer the
range limitations of pure electric cars.
    Toyota announced recently that it is increasing production of the hybrid
vehicle from 1,000 units a month to 2,000 units.  Several other manufacturers
are developing hybrid concepts that incorporate the Borg-Warner Automotive
Morse TEC chain as well.
    "The incorporation of the Morse TEC chain in the Prius is consistent with
our tradition of engineering products for leading-edge technologies, like the
hybrid electric vehicle," said Ronald M. Ruzic, President and General Manager,
Morse TEC.  "It exemplifies the Borg-Warner Automotive commitment to product
leadership, which has never been stronger."
    The Toyota hybrid engine configuration includes a battery pack that
provides power for the electric motor, which drives the wheels, and an
internal combustion engine that drives a generator, which recharges the
batteries.  The battery-powered electric motor is the primary source of power.
Under certain conditions the internal combustion engine engages and runs the
generator to enable recharging of the batteries.
    The Borg-Warner Automotive Morse TEC chain on the engine couples the
electric motor to the final drive gearing.  It helps drive the wheels during
acceleration, and drives the motor during slow-down to recharge the batteries.
    Borg-Warner Automotive's Morse TEC operating group is the global leader in
the design and manufacturing of automotive chain systems and components for
engine timing, automatic transmission and four-wheel drive applications.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader
in highly engineered components and systems primarily for automotive
drivetrain applications.  The company operates manufacturing and technical
support facilities in 12 countries serving the North American, European and
Asian automotive markets.
    Statements contained in this press release which are not historical facts
are "forward-looking" statements as contemplated by the Private Securities
Litigation Reform Act of 1995.  Such 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, and 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.