BorgWarner Corporate Headquarters Will Move to Metro Detroit

CHICAGO, Sept. 16 -- BorgWarner Inc. announced today that it plans to relocate its corporate headquarters from Chicago to Auburn Hills, Michigan.

"As a top-25 global supplier focused exclusively on the automotive business, BorgWarner is a natural fit for metro Detroit -- a key location in the global automotive industry, home to several of our customer organizations, and the headquarters of three of our global business units," said Tim Manganello, BorgWarner Chairman and Chief Executive Officer. "We expect there will be significant benefits to a Detroit-based location, including closer connections with our global customers and suppliers, opportunities for increased collaboration with the 450 employees at the BorgWarner Powertrain Technical Center in Auburn Hills, and enhanced industry visibility."

The move is expected to be completed by mid-2005. The headquarters will be located in a new, 60,000 square-foot building at 3850 Hamlin Road in Auburn Hills at the southwest corner of Hamlin and Adams Roads. BorgWarner will lease 40,000 square feet of space in the building, which will be owned by Etkin Equities. Construction is expected to begin in early 2004.

"BorgWarner is grateful to the Michigan Economic Development Corporation and the people of Auburn Hills and Oakland County for their positive attitude and spirit of cooperation in bringing BorgWarner to the state of Michigan," Manganello said.

The new headquarters will house Manganello and other corporate officers, as well as approximately 60 corporate employees.

"BorgWarner has been a longtime partner with Michigan, creating good- paying jobs for our workers," said Michigan Governor Jennifer M. Granholm. "We appreciate the company's continued commitment to Michigan. BorgWarner's decision to bring its headquarters here is a testament to a top-notch workforce and excellent business climate."

"I'm proud to welcome the 'powertrain powerhouse' that is BorgWarner to southeastern Michigan, home of Automation Alley and the 1,800 companies that enjoy the unparalleled advantages that Oakland County offers the global business community," said Oakland County Executive L. Brooks Patterson. "BorgWarner has a long and distinguished history, and I am delighted to add such a prestigious name to the growing list of Auburn Hills-based companies."

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 43 locations in 14 countries. Combined 2002 sales were $3 billion. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is: http://www.bwauto.com/. For further information contact BorgWarner Corporate Communications at 312-322-8500.