BorgWarner Plans to Sell Fuel Systems, HVAC Units

April 5, 2000

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BorgWarner Inc. has announced its intention to sell its Fuel Systems and Kysor-Westran HVAC units, two non-core business which were part of the Vehicle Products business of Kuhlman Corporation that the company 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." 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, MI 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, IL and employs about 320 people.

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