BorgWarner Begins Production of Sophisticated Four-Wheel Drive System for H2's Premium Powertrain

CHICAGO, June 25 Production has begun on the electronically controlled, full-time four-wheel drive system that is at the heart of the H2, General Motors' all-new vehicle that expands the HUMMER brand's product lineup and customer base with a more refined but still-rugged, full-size SUV. The BorgWarner system is integrated with the powertrain, and is standard on the H2.

The system is capable of further multiplying the vehicle's gear ratios by 2.64:1 when necessary, for highly controlled obstacle climbing. It provides a 40/60 percent front-to-rear torque split in "High Open" or when the differentials are unlocked, and a 50/50 percent front-to-rear power split when the transfer case differential is locked. BorgWarner also supplies the transfer case electronic control unit, which provides five mode selections including rear axle differential lock, to provide optimum performance under all types of driving conditions.

"H2 provides excellent on-pavement power, performance and control for everyday driving and routine tasks like trailer-towing," said Timothy M. Manganello, BorgWarner President and Chief Operating Officer. "But its true character really shines in the off-road arena. It can easily soldier over rocks and through the harshest terrain. BorgWarner is proud to provide such a vital element of this exhilarating, uncompromising vehicle." The system is produced in Muncie, Indiana.

BorgWarner TorqTransfer Systems is a leading independent global designer and producer of torque distribution and management systems -- transfer cases, InterActive Torque Management (ITM)(TM) devices -- for four-wheel drive vehicles for the sport-utility, light truck and cross-over vehicle markets. These systems enhance driver security, driveability and handling. 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 50 locations in 14 countries including joint ventures, with combined worldwide sales of $2.7 billion in 2001. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Caterpillar, Navistar International, PSA and VW Group. The Internet address for BorgWarner is: http://www.bwauto.com . For further information contact BorgWarner Corporate Communications at 312-322-8500. Investor conference calls are webcast at: http://www.videonewswire.com .