BorgWarner Opens New Turbo Facilitiy in Korea

BorgWarner Expects to Produce Nearly 2 Million Turbochargers in Korea within Five Years

AUBURN HILLS, Mich., Nov. 19 -- Driven by increasing worldwide demand, BorgWarner's majority-owned subsidiary, SeohanWarner Turbo Systems, opened a 52,000-square-foot (4,800-square-meter) facility on the BorgWarner Engine Group campus in Pyongtaek, Korea. The world- class facility includes office, production and warehousing space for a workforce expected to reach 130 within five years. In addition, the facility will house the first on-site engine and turbocharger testing cells for a turbocharger supplier in Korea. The test facilities will be commissioned later this year and fully operational early next year, further enhancing collaborative relationships with customers.

"Our strong strategic partnership with Hyundai-Kia Motor Company and expertise in turbo technology has driven our considerable growth since establishing a presence in Korea in 2004," said Roger Wood, President and General Manager, BorgWarner Turbo & Emissions Systems. "We look forward to bringing many new and innovative products to the Asian and worldwide markets in the future." BorgWarner expects the new Korean facility will produce a total of nearly two million turbochargers for customers worldwide in the next five years.

BorgWarner launched the first electronically actuated variable turbine geometry (VTG(TM)) turbocharger in the Korean market for the Hyundai 3.0L V6 diesel engine, which powers the Veracruz luxury utility vehicle (LUV). Developed in cooperation with BorgWarner Turbo & Emissions Systems in Germany and SeohanWarner Turbo Systems, the electric actuator allows Hyundai's engineers to better fine tune the engine, resulting in increased fuel economy and performance as well as significantly reduced emissions. The turbocharged V6 diesel engine satisfies the first grade fuel economy standards in Korea and meets the latest Euro IV regulations. SeohanWarner Turbo Systems also produces turbochargers for the Hyundai Grand Starex, Kia Sorento and Kia Grand Carnival.

BorgWarner Turbo & Emissions Systems is a leading global producer of turbochargers and other engine air management systems for passenger cars, light trucks and commercial vehicles. These systems are designed to improve fuel economy, reduce emissions and enhance vehicle performance.

With operations in Korea since 1987, BorgWarner now has six facilities in the country, including the new SeohanWarner Turbo Systems facility.

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 64 locations in 17 countries. Customers include VW/Audi, Ford, General Motors, Toyota, Hyundai/Kia, Daimler, Renault/Nissan, Chrysler, Navistar International, Fiat, BMW, Honda, PSA, and Caterpillar. The Internet address for BorgWarner is: http://www.borgwarner.com/ .