BorgWarner Will Expand Strong Position in South America with New Campus in Brazil

AUBURN HILLS, MI--July 21, 2011: Propelled by growing demand in the rapidly expanding Brazilian automotive market, BorgWarner will build a new larger production facility and engineering center in Itatiba City, Brazil (about 70 km northwest of Sao Paulo). The new 204,500-square-foot (19,000-square-meter) facility will replace the current plant in Campinas and is expected to be completed in August 2012. The relocation of production capacity will allow BorgWarner to optimally serve customers with various fuel-efficient technologies, including turbochargers for passenger cars and commercial vehicles, and viscous fans and fan drives. In the future, the facility will be ready to support production for variable camshaft timing (VCT) technology and engine timing systems.

"Increasing demand for our fuel-efficient technologies is driving significant growth for BorgWarner's business, especially in the rapidly expanding Brazilian market where the government is adopting new emissions regulations similar to Euro V standards," said Timothy M. Manganello, Chairman and Chief Executive Officer, BorgWarner. "The new campus in Brazil fits BorgWarner's global growth strategy and underscores our focus on providing technology solutions aimed at improving fuel economy and reducing emissions. With our new facility, we will be able to expand existing product lines and introduce new technologies and products to growing markets in South America."

BorgWarner entered the Brazilian market with its facility in Campinas in 1975.

In the past 35 years, BorgWarner has continuously increased production capacity to meet market demands, achieving a market-leading position for turbochargers, fans and fan drives. With a total area of nearly 100,000 square meters, the newly acquired campus will offer additional space for future expansion to support the growing South American market.

BorgWarner's strong workforce in Campinas has received eight quality, environmental and safety awards since 2002. In 2010, Daimler presented the facility with its Environmental Award. In 2009, employees at the plant received an Innovation Award from BorgWarner and the Supplier Award 2009 in the Quality Product Field category from MAN Latin America.

About BorgWarner

Auburn Hills, Michigan-based 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 59 locations in 19 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN.