BorgWarner TorqTransfer Systems to Supply InterActive Torque Management System To Hyundai Santa Fe CM

CHICAGO, Sept. 4 -- BorgWarner TorqTransfer Systems will supply its InterActive Torque Management (ITM)(TM) system to the new Hyundai Santa Fe CM crossover utility vehicle, beginning in June 2005. The Santa Fe CM will be unibody, as is the current model construction, which gives the vehicle car-like performance and handling.

"The first application of BorgWarner ITM-I(TM) was on the Hyundai Santa Fe, and we are delighted to supply the system to its replacement model, the CM, as well," said John McGill, President and General Manager, BorgWarner TorqTransfer Systems. "The popularity of the Santa Fe underscores the trend toward blending the functionality of the SUV with the ride, handling and fuel economy of car platforms. The BorgWarner system contributes significantly to the exceptional driving experience that Santa Fe customers seek." Vehicle production will begin in Ulsan, Korea in June 2005, and in Hope Hull, Alabama, in January 2006. Front-wheel drive and four-wheel drive models will be available, along with 4-cylinder and V6 engines.

The patented BorgWarner system uses electronic sensors and microcomputer controls to sense slippage in a vehicle's front wheels and automatically transfers power to the rear wheels. Then, when the front wheels are no longer slipping, the system reduces or eliminates power to the rear wheels. This provides efficiencies that enhance vehicle handling and traction and improve fuel economy. In addition, because ITM-I(TM) is fully interactive, it can work with other systems such as anti-lock brake systems and electronic stability programs to further enhance traction and stability. And, because it is an integrated, self-contained system, it provides greater reliability and durability while lowering weight and cost. It also provides flexible packaging and is scalable for a variety of applications.

As a complete torque management system integrator, BorgWarner TorqTransfer Systems develops and supplies the ITM(TM) hardware, control strategy and the electronic control unit. The ITM(TM) systems are produced at BorgWarner TorqTransfer Systems in Seneca, South Carolina.

BorgWarner TorqTransfer Systems is the largest independent global designer and producer of transfer cases and torque distribution management systems for four-wheel and all-wheel drive vehicles for the sport-utility and light truck markets. These systems enhance vehicle stability, security, drivability and ease of use.

BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is:

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