BorgWarner and Hitachi Form Hitachi Warner Turbo Systems
TOKYO & CHICAGO--June 25, 2001--BorgWarner Turbo Systems and Hitachi, Ltd. , Automotive Products Group today announced that they have agreed to form a 50/50 joint venture to produce and sell turbochargers in the Asian market, in support of the growing worldwide demand for turbochargers. The new company, named Hitachi Warner Turbo Systems, Ltd., based in Hitachi-naka city, Japan, complements BorgWarner Turbo Systems' operations in North America, Europe, South America and an Indian joint venture.
"The expertise and reputation of Hitachi, one of the world's largest and most distinguished electronics companies, combined with BorgWarner's strengths in product development and manufacturing, will maximize our capabilities and cost savings in support of our turbocharger customers worldwide," said John F. Fiedler, BorgWarner chairman and CEO. "Hitachi Warner Turbo Systems, Ltd. joins BorgWarner Turbo Systems' Worldwide Technical Center in Kirchheimbolanden, Germany, and the new North American Technical Center in Asheville, North Carolina, to complete our now-global network of turbocharger operations. The market for turbochargers is expected to increase by 30 percent over the next five years. BorgWarner is exceptionally well-positioned to respond to this growth opportunity."
"Hitachi Warner Turbo Systems will combine Hitachi's development and manufacturing technologies for smaller type turbochargers and engine management system solution capabilities with BorgWarner's advanced turbocharger technologies to provide the most competitive turbochargers in the Asian market. It also will take advantage of BorgWarner's manufacturing and development sites and worldwide network, and maximize opportunities for economies of scale," said Kunihide Kaneko, president and chief executive officer, Automotive Products Group, Hitachi, Ltd.