BorgWarner Turbochargers Provide Market-Leading Technology for Small Passenger Car Diesel Engines in Europe

    CHICAGO, Sept. 10 With a new order for 1.8 million
turbochargers for Peugeot, BorgWarner now supplies the market-
leading technology for small passenger car diesel engines in Europe.
    BorgWarner's Turbo Systems group expects to supply approximately
1.8 million turbochargers for Peugeot's new small common-rail diesel engine
over the next few years.  The DV4 engine is the first engine emerging from the
Peugeot/Ford diesel engine alliance and will be used in several different
vehicles of both brands.  The supply of the turbochargers to Peugeot's engine
works in Valladolid, Spain began this summer.
    The new turbochargers, called KP 35, are compact, powerful units designed
for smaller 1.4 L diesel 4-cylinder engines with common-rail injection.  The
use of the smaller engines by Peugeot and other European automakers reflects a
trend in Europe towards greater fuel efficiency and lower emissions.
    "Government mandates on fuel consumption and emissions are primary drivers
of innovation in Europe," said Lee Wilson, President and General Manager,
BorgWarner Turbo Systems.  "Our new KP 35 turbocharger is a key factor in
enabling the OEMs to achieve the environmental goals of the downsized engines
without sacrificing performance."
    The turbochargers for the Peugeot engines will be produced at BorgWarner's
plant in Kirchheimbolanden, Germany.  BorgWarner Turbo Systems is a leading
designer and manufacturer of turbochargers for the passenger car and
commercial vehicle market.

    Chicago-based BorgWarner is a product leader in highly engineered
components and systems for vehicle powertrain applications worldwide.  The
company operates manufacturing and technical facilities in 46 locations in 13
countries.  Customers include Ford, DaimlerChrysler, General Motors, Toyota,
Caterpillar, Navistar International and VW Group.  The Internet address for
BorgWarner is http://www.bwauto.com .  For additional information, contact
BorgWarner Corporate Communications at (312) 322-8500.

    Statements contained in this news release may contain forward-looking
statements as contemplated by the 1995 Private Securities Litigation Reform
Act that are based on management's current expectations, estimates and
projections.  Words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar expressions are
intended to identify such forward-looking statements.  Forward-looking
statements are subject to risks and uncertainties, which could cause actual
results to differ materially from those projected or implied in the forward-
looking statements.  Such risks and uncertainties include:  fluctuations in
domestic or foreign automotive production, the continued use of outside
suppliers by original equipment manufacturers, fluctuations in demand for
vehicles containing the Company's products, general economic conditions, as
well as other risks detailed in the Company's filings with the Securities and
Exchange Commission, including the Cautionary Statements filed as Exhibit 99.1
to the Form 10-K for the fiscal year ended December 31, 2000.

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