The company expects to more than double the size of its $200 million (US) European turbocharger business in the next four years, leading the growth of that business worldwide. The expanded facility combines Borg-Warner Automotive's 3K-Warner European turbocharger business with the European turbocharger business acquired from Kuhlman Corporation's Schwitzer Group.

Local officials, customers, employees and company officers gathered in Kircheimbolanden for the grand opening of the expanded facility. The new building accommodates about 150 employees who will work in management, sales, applications, design, purchasing, accounting and finance, information technology and quality assurance for the group. The new Kirchheimbolanden facility is the most recent addition to the company's expanding global advanced technology network. In May 1998, BWA Morse TEC opened a European headquarters in Arcore, Italy, at which engine timing systems and powertrain drive chains are produced. Last month the company opened the Transmission Advanced Product Development Center for Europe near Heidelberg, Germany, which will house advanced product development activity for clutch systems and control modules for automatic and automated manual transmissions for the European market.

PSA PEUGEOT CITROËN is considering the sale of the La-Barre-Thomas unit to one of the leading parts manufacturers in the sector, the Italian group CF GOMMA. This operation would enable the Rennes-La-Barre-Thomas site to ensure its future, thanks to its integration in a group that is internationally recognised for its expertise. This integration would open up new avenues for La-Barre-Thomas in terms of research and production, and would give it access to new markets outside the PSA PEUGEOT CITROËN group.

In the framework of this project, the PSA PEUGEOT CITROËN group undertakes to contribute towards maintaining the current activity at La-Barre-Thomas over a sufficiently long period to be able to stock up on existing products. Furthermore, the PSA PEUGEOT CITROËN group will develop close co-operation with the La-Barre-Thomas site, consulting it on the supply of future new products.