$950 Mil. In New B-W Business

CHICAGO--BorgWarner Inc. has achieved $950 million in expected new powertrain business for 2001 through 2003.

About 43 percent of the new business is anticipated to be engine-related and another 40 percent is expected in four-wheel drive systems.

“Our technology is clearly the strong growth catalyst for this net new business,” said John F. Fiedler, chairman and chief executive officer. “We believe that we can outpace the growth in our industry because our technology addresses the needs of our vehicle-maker customers to improve fuel economy, air quality and to provide solutions to the growing concern about vehicle stability,” he said “By leveraging our powertrain expertise worldwide, we expect to broaden our customer base and increase our content in new vehicle programs.”

Fiedler noted that the anticipated new business represents a 12 percent increase over the previous three-year period, a significant accomplishment, he said, given the impact of the weak euro and some customer delays and volume weakness in the company’s new business for 2001.

“Our investment in research and development is evident in the new business momentum we are building,” Fiedler said. “The anticipated new business over the coming three-year period reflects continued strength in our engine products, the expansion of our four-wheel drive business and the opening of an entirely new market for us, with our first business for innovative transmission technology just beginning at the end of the period. We expect that the value of each year’s business will increase over the three years.”

Significant programs during the period include chain-driven timing systems for Honda, Ford and DaimlerChrysler engines; next generation turbochargers for European customers; electronic engine cooling systems for a major North American sport utility and light truck maker; InterActive Torque Management (ITM) 4WD systems for Acura; and 4WD transfer cases for General Motors and Hyundai. Also included are a number of transmission programs for more efficient five-and six-speed automatic transmissions; continuously variable transmissions in Europe, North America and Japan; and dual clutch and controls modules for new concept automated manual transmissions in Europe.

Fiedler also reiterated that the company expects to deliver full-year 2000 earnings above last year’s level of $5.07 per share, exclusive of a restructuring charge, and that growth from continuing operations in 2001 is expected to be about 3 percent to 5 percent, including the new business.

The company operates 60 manufacturing and technical facilities in 13 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar and VW Group.

The Internet address is www.bwauto.com.