SUPPLY AGREEMENT

                                 BAJA ORIENTE

                                JANUARY 1, 1994

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TABLE OF CONTENTS

          Pages                    Contents
          -----                    --------       

          1-4                      Terms and Conditions

          4                        Signature Page

          5                        Exhibit I

          6                        Exhibit II

          7                        Attachment A, B

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                           ALLIEDSIGNAL INC. - T&TBS
                           GARRETT AUTOMOTIVE GROUP
                             3201 W. Lomita Blvd.
                              Torrence, CA 90503

                               SUPPLY AGREEMENT

Supplier Baja Oriente ("Seller"), address - 13747 Escelsior Dr., Santa Fe
Springs, CA 90670, has entered into a supply agreement with AlliedSignal Inc.
on behalf of Garrett Automotive Group ("Buyer").  In consideration of the
mutual covenants and conditions herein, the parties agree as follows:

1.   TERM
     ----

1.1  The term of this supply agreement (the "Agreement") shall be a period of
     three (3) year(s) commencing January 1, 1994 and ending on December 31,
     1996. (the "Term")

2.   SALE OF PROCEEDS
     ----------------

2.1  Buyer agrees to purchase and Seller agrees to sell component parts used in
     the manufacture of repair of Turbochargers and Charged Air Coolers and
     specified on Exhibit I, and Exhibit II of Buyer requirement during the
     Term for products as set forth on the fac of the purchase order (Form BWS-
     1004A 1/93) as amended by the specific warranty clause, Attachment A,
     which is attached hereto and is made a part of this agreement
     ("Products").  Buyer and Seller agree to commence negotiations for a new
     supply agreement no later than September, 1996, and further agree to a
     target date of December 1, 1996 for the signing of such new supply
     agreement, provided such new supply agreement is acceptable to both
     parties.

3.   PRICE
     -----

3.1(A)    The initial price Buyer shall pay to Seller for Products are set
          forth in Exhibit I, and Exhibit II.

3.2(B)    The price of Aluminum is established at $0.62/lb for 319 Aluminum
          alloy, and $0.67/lb for 356 Aluminum alloy per the American Metal
          market dated 11/23/93.  The prices shall be adjusted to reflect cost
          decreases or increases by Seller resulting from changes to the
          published prices of plus or minus ten percent (10%) from the prices
          stated.  The American Metal Market will serve as the agreed upon
          published price source.  Adjustments shall e no more frequent that
          once during any three month period.

4.   PRODUCTIVITY
     ------------

4.1  As of January 1, 1994, 1995 and 1996, Seller will reduce the price for
     products by an amount no less than 2% for those items on Exhibit I, and 6%
     for those items on Exhibit II commencing on January 1, 1995.  The prices
     will be reduced in a manner so that the effect of said reduction will
     lower the base price of the total volume of work for each exhibit based on
     the preceding 12 month period.  The base pricing will only change based on
     the 

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     adjustments for Aluminum ingot as defined in section 3.2, and exceptional
     economic hardship as defined in section 5.

4.2  Successful productivity suggestions made under the ASPIRE program will
     count 100% toward the commitments shown, up to 6%, after which said cost
     savings will be shared with the supplier on a 50-50 basis.

4.3  Machined parts or other value added activity that results in a net savings
     to Buyer will be credited 100% toward the productivity commitments
     previously stated in section 4.1.

5.   ECONOMIC ADJUSTMENT
     -------------------

5.1  The prices identified in Exhibit I, and Exhibit II, are based on the
     Seller's labor cost and raw material cost.  From time to time, but no more
     frequently than once during any 12 month period, Buyer or Seller may
     initiate negotiations to adjust prices to account for extraordinary
     changes to the labor portion of the product cost.  The change to the labor
     cost must e deemed extraordinary after such economic influences as the
     Peso-Dollar Exchange rate is taken into consideration.  The Seller will,
     at the request of the Buyer, provide documentation to substantiate the
     proposed change to the labor percentage of the part cost.  The prices
     referenced on Exhibit I will remain firm and fixed for entirety of 1994.

5.2  From time to time, but no more frequently than once during a three month
     period, Buyer and Seller will agree to change the purchase price of
     Product in accordance with section 3.2 to allow for fluctuations greater
     than 10% to the published price of aluminum ingot per the American Metal
     Market.

6.   QUALITY CRITERIA
     ----------------

6.1  Seller must maintain quality and delivery standards that are at least
     consistent with a score of fifty (50) as measured by Buyer on Buyers
     Quality Survey (BC-2522).  If for some reason, Seller does not meet a
     minimum score of fifty (50) on the Buyer's Quality Survey, Seller will
     have six months to achieve this minimum score of fifty (50), otherwise,
     Buyer may terminate the Agreement with respect to some or all of the
     Products, without further obligations to the Seller.

6.2  In addition to Seller's obligations under Paragraph 6.1, Seller shall also
     maintain a cumulative rejection rate per Attachment B.  Dates for
     continued improvements by Seller are included in Attachment B which is
     attached to and made a part hereof.

6.3  In the event Seller ships non-conforming Products, Buyer shall so notify
     Seller and allow Seller a maxzimum of twenty-four (24) hours to ship
     Products conforming to Buyer's specifications. Buyer shall debit Seller a
     fee of $105 per rejected shipment whether rejected in whole or in part to
     cover internal processing of the rejection and notify Seller of the
     rejection and estimated charges.  If Seller fails to ship conforming
     Products within the twenty-four (24) hour period referred to above, Buyer
     shall debit Seller $75 per hour that may be

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     required to sort and/or modify Products to meet specifications only if
     approval is obtained by Seller of total cost estimate.  Additionally,
     Buyer shall debit the costs of returning the non-conforming Products to
     the Seller.  The $105 per shipment charge will be waived for Seller, given
     that the improvements listed on Attachment B are met and that cumulative
     rejects of less than 1% are achieved on a quarterly basis subsequent to
     January 1, 1994.

7.   CHANGES
     -------

7.1  If Buyer initiates design, process, or other changes which result in
     decreased production costs, prices will be decreased to reflect the entire
     effect of the decreased production costs.  If Seller initiates design,
     process, or other changes as through the framework of the ASPIRE program,
     the net effect of the decrease after non-recurring costs will count 100%
     toward the commitments mentioned in section 4.1.  Additional savings after
     the commitment is met will be shared 50-50 between Buyer and Seller.

8.   INVENTORY
     ---------

8.1  Prior to the expiration of any of Seller's labor contracts, Seller will
     make best effort to , at its expense, fabricate and locate in an area not
     to be affected by any labor disruption, a finished inventory of salable
     Products sufficient to fulfill Seller's obligation to Buyer for a minimum
     of thirty (30) calendar days after expiration of such contracts.

8.2  As per the terms on the reverse side of Buyer's production schedule, Buyer
     commits to thirty (30) days forward schedule during which all efforts will
     be made by Buyer to maintain consistent scheduling.  In the event that
     unforeseen events cause radical changes to the requirements of Buyer, a
     mutually acceptable arrangement will be made to relieve Seller of on hand
     and in process inventory.

9.   PROHIBITION OF USE OF PRODUCTS AND TOOLING
     ------------------------------------------

9.1  Seller shall not sell or transfer to any third party or allow any such
     third party to use Products (including rejected Products, Buyer's drawings
     and specifications, or any other confidential information of Buyer) for
     any reason whatsoever.  Furthermore, Seller shall not manufacture parts
     for other customers which would engage the use of Buyer's Tooling, without
     the prior written consent of Buyer.

10.  SERVICE REPLACEMENT
     -------------------

10.1 At Buyer's request, during the seven year period after Buyer completes
     current purchases, Seller, will sell Product to fulfill Buyer's past model
     service and replacement requirements at the prices specified in this
     Agreement plus reasonable actual setup or manufacturing costs.  During the
     seventh year of such period, Buyer and Seller will negotiate in good faith
     with regard to Seller's continued manufacture of service and replacement
     Products.

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11.  TERMINATION
     -----------

11.1 In addition to its rights under Section 6 and Article 11 of Buyer's
     Purchase Order Form, Buyer may terminate this Agreement without liability
     upon at least ninety (90) days of written notice if, (a) Buyer determines
     in its reasonable discretion that Seller is no longer competitive in price
     (including non-competitiveness due to exchange rate fluctuations, if
     applicable) or delivery, or quality levels fall below the acceptability
     limits established by section 6 and Attachment B, or, (b) Buyer can
     substitute parts of significantly advance design or pricing.  Upon Buyer's
     notice, Seller may respond to Buyer's notice no later than sixty (60) days
     prior to the effective date of such termination it being understood that
     Seller's opportunity to respond to Buyer's notice shall in no way limit,
     modify, or alter Buyer's sole right to terminate this Agreement. Seller
     will be given the last right of refusal to meet the competitive price
     thereby retaining the business on the part in question.  If Buyer
     determines that Seller is no longer competitive in price for a product, or
     if Quality and Delivery performance falls below acceptable limits, the
     Agreement for that part may be terminated by the Agreement for the Balance
     of the parts will remain in effect in accordance with the balance of the
     terms of this Agreement.

12   INCORPORATION BY REFERENCE
     --------------------------

12.1 The terms anc conditions set forth in Buyer's Purchase Order Form (BWS-
     1004A-1/93), as amended by Buyer's warranty clause, per Attachment A, and
     any releases issued thereunder (GAR-637-5/91) are incorporated herein and
     are made a part hereof, in the event of any conflict between the terms and
     conditions of the reverse side of the purchase order forms, and the terms
     and conditions of the Agreement, the terms and conditions of this
     Agreement shall prevail.

                                   SELLER


                                   By:  "MICHAEL JOYCE"                
                                        -------------------------------
                                   Title:    President


                                   BUYER

                                   ALLIED SIGNAL INC.
                                   AUTOMOTIVE SECTOR

                                   By:  "J.W. RICHARD"                 
                                        -------------------------------
                                   Title:    Vice President, Materials
                                             Management

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                                   EXHIBIT I

Garret Automotive - Mexicali Charged Air Systems


The following pricing structure is based on current pricing and the terms of
this Agreement.  FOB will remain "DESTINATION" for the duration of this
Agreement.  Allied Signal agrees to procure 100% of the casting requirements
for the following parts as the provisions of this Agreement are upheld. 
Additional work that is rewarded to Baja Oriente after January 1, 1994, will
follow a 6% year or year productivity improvement schedule



PART NUMBER         CALENDAR '94   CALENDAR '95    CALENDAR '96
-----------         ------------   ------------    ------------

485442-0002           16.43           16.13            15.80
485444-0002           20.04           19.63            19.23
485446-0002           18.22           17.85            17.49
485448-0002           18.22           17.85            17.49
485456-0001           16.29           15.96            15.64
485458-0001           16.93           16.59            16.25
485622-0003           16.93           16.59            16.25
485622-0004           16.93           16.59            16.25
485632-0001           18.47           18.10            17.73
485634-0001           20.87           20.45            20.04
485642-0002           17.40           17.05            16.70
485644-0002           18.81           18.43            18.06
485806-0001           16.82           16.48            16.15
486002-0001           18.03           17.66            17.30
486004-0001           17.54           17.18            16.83
486122-0003           18.34           17.97            17.61
486124-0003           18.34           17.97            17.61
486132-0005           21.80           21.36            20.93
486132-0006           21.80           21.36            20.93
493815-0002           18.90           18.52            18.14
493816-0002           18.90           18.52            18.14

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                                  EXHIBIT II

                  Garrett Automotive - Lomita Turbo Charging


The pricing set forth in this exhibit is reflective of the current prices
quoted by Baja Oriente.  Prices shown are FOB Ensenada with delivery to Santa
Fe Springs, CA quoted at .08/lb.

Allied Signal agrees to procure 100% of the casting requirements of the
following parts as long as the provisions of this Agreement are upheld. 
Additional work that is awarded to Baja Oriente after January 1, 1994, will
follow a 6% year over year productivity improvement schedule.



PART NUMBER         EAU        CALENDAR '94  CALENDAR '95    CALENDAR '96
-----------        ------      ------------  ------------    ------------
409168-0608         6200           23.94          22.50         21.15
443534-0751         3000           19.63          18345         17.34
447296-0004         40,000         25.88          24.33         22.87
442820-0750         5000           20.97          19.71         18.53
442087-0950         1800           20.03          18.82         17.69
442087-0750         7200           20.96          19.70         18.52
408173-0139         8000            7.58           7.15          6.72
443567-0012         6000           25.62          24.08         22.64
448709-0011         23,000          7.33          *6.89         *6.48


* This part is currently scheduled to be phased down by end of calendar year
1994.

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                                 ATTACHMENT A

                              WARRANTY LIABILITY


Beginning January 1, 1994, if Buyer can prove that a failure in the field is
directly attributable to a deviant condition caused by Sell, whether is to the
Seller's part or Seller's part directly causes the failure of another part,
Seller agrees to pay warranty penalty according to the following scale:



Failure Rate             Liability

1 to 10,000 PPM          Seller replaces the cost of the casting at the current
                         cost as determined by this Agreement.
> 10,001 PPM             * Seller agrees to pay the replacement cost of the
                         Turbocharger or Charged Air Cooler.

* Estimated liability - Turbo Charger:    $250
                      - CAC:              $275





                                 ATTACHMENT B

                           PPM IMPROVEMENT SCHEDULE


As with reductions to the salable prices of the Products in this Agreement,
Seller agrees that the learning curve guarantee by this long term Agreement
will facilitate the following improvement to Part Per Million Reject Rate.  PPM
will be measured starting January 1, 1994, based on a 12 month rolling average.


                         1994 - 10,000 PPM
                         1995 -  7,500 PPM
                         1996 -  5,000 PPM

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