BorgWarner Breaks Ground for New World Headquarters in Auburn Hills, Michigan

AUBURN HILLS, Mich., July 14 -- BorgWarner Inc. has broken ground for new world headquarters located at 3850 Hamlin Road in Auburn Hills, at the southwest corner of Hamlin and Adams Roads. The top-25 global powertrain supplier announced in September 2003 that it would relocate its corporate headquarters from Chicago to metro Detroit, to maintain closer connections with the company's global customers and suppliers and maximize opportunities for increased collaboration with the 450 employees at the two-year-old BorgWarner Powertrain Technical Center in Auburn Hills.

BorgWarner will lease 40,000 square feet of the new, 60,000 square-foot building, which will be owned by Etkin Equities. Completion is expected by April 2005.

"Every day we get a few steps closer to establishing ourselves in metro Detroit -- the heart of 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 are already seeing the benefits of a Detroit-based location for a leading powertrain supplier that is focused exclusively on providing solutions for enhancing fuel economy, reducing emissions and enhancing vehicle stability and performance."

About 70 employees will eventually be based at the headquarters, including the staffs of departments such as the chairman and CEO's office, finance and administration, business development, corporate communications and investor relations, human resources, information technology, and legal/patent.

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. Sales in 2003 were $3.1 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.