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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: January 19, 1995
BORG-WARNER AUTOMOTIVE, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-12162 13-3404508
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
200 South Michigan Avenue, Chicago, Illinois 60604
(Address of principal executive offices)
Registrant's telephone number, including area code: (312) 322-8500
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Item 5. Other Events.
On January 19, 1996, Borg-Warner Automotive, Inc. announced its intention
to seek an acceptable buyer for its North American manual transmission
manufacturing business.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
(99) Borg-Warner Automotive, Inc. Press Release dated January 19, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
BORG-WARNER AUTOMOTIVE,INC.
By: Gaspare G. Ruggirello
---------------------
Gaspare G. Ruggirello
Assistant Secretary
Dated: January 19, 1996
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EXHIBIT INDEX Page
(99) Borg-Warner Automotive, Inc. Press Release dated January 19, 1996. 4
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EXHIBIT 99
[BORGWARNER AUTOMOTIVE LETTERHEAD]
News Release
Release Date: Immediate
Contact: Leslie Cleveland Hague
312/322-8683
BORG-WARNER AUTOMOTIVE TO SELL
NORTH AMERICAN MANUAL TRANSMISSION MANUFACTURING BUSINESS
Chicago, Illinois, January 19, 1996 - Borg-Warner Automotive, Inc. (NYSE:BWA)
today announced that it plans to seek an acceptable buyer for its North
American manual transmission manufacturing business. In order to accomplish
this in a comprehensive and orderly manner, an investment banking firm will be
retained to assist in the identification of possible purchasers. This decision
to exit the U.S. market does not affect the company's growing four-wheel drive
(4WD) transfer case business or its manual transmission operations in Asia,
where it operates manufacturing joint ventures in China and India.
Borg-Warner Automotive is one of the last remaining independent producers
of manual transmissions in the United States. There has been a steady decline
in the U.S. of light vehicles with manual transmissions and today, less than 22
percent of the cars and light trucks sold in North America each year are
equipped with manual transmissions. Of that market, most are made in-house by
the Original Equipment Manufacturers (OEMs) or
-More-
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by suppliers that are allied with OEMs through joint ventures or other business
arrangements. These trends will continue to place independent producers like
Borg-Warner Automotive at a competitive disadvantage.
"The shrinking U.S. manual transmission market, combined with the decline
in sales of sporty cars -- our only real U.S. manual transmission market
niche-makes it necessary to sell our U.S. manual transmission manufacturing
business. This strategic move will strengthen our company's future earnings
and protect our 4WD transfer case operations by refocusing our energies on that
growing, but highly competitive segment of business. We will, however, retain
design, engineering and marketing of manual transmissions, especially in Asia
where demand for manual transmissions is expanding," said Borg-Warner
Automotive president and CEO John F. Fiedler.
In the United States, Borg-Warner Automotive produces manual transmissions
for light trucks and 5 and 6-speed high performance sports cars such as the
Dodge Viper, Chevrolet Camaro, Pontiac Firebird and the Ford Mustang at a
subsidiary plant located in Muncie, IN.
Chicago-based Borg-Warner Automotive, Inc. is a leading supplier of highly
engineered components and systems primarily for automotive drivetrain
applications. The company operates manufacturing facilities in 11 countries
serving the North American, European and Asian automotive markets.
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