BorgWarner Launches Chain Timing System for World Engine; Will Provide Electronic Throttle Control Beginning Next Year

CHICAGO, Sept. 23 -- BorgWarner has begun production of the engine chain timing system and will also supply the electronic throttle control for the "world engine", a family of four-cylinder gasoline engines produced by the Global Engine Alliance LLC. The Alliance, a joint venture between Hyundai Motor Company, DaimlerChrysler AG and Mitsubishi Motors Corporation, was announced in May 20, 200402. Total annual world engine production is estimated at more than 1.6 million units, which would make Alliance's global output the highest-volume engine family in the world.

"BorgWarner's globally integrated organization allows us to provide our customers with local service in each of the world engine production regions, utilizing our expertise from all over the world," said BorgWarner Chairman and CEO Tim Manganello. "This capability is a consideration in many sourcing decisions today and, when combined with our value-added, differentiating technology, gives BorgWarner an important competitive advantage."

The world engine will be manufactured in production facilities located in the United States, South Korea and Japan. Shared development costs between five operations in these three markets mean that the three OEMs anticipate significant economies of scale.

BorgWarner will supply the chain timing system in all three markets. Drivers of vehicles equipped with these systems will benefit from reduced engine noise, increased performance and durability. The system also aids emissions reduction. Production is currently being launched for the Korean market. In North America and Japan, production is expected to begin in mid- 2005.

In addition, BorgWarner will supply DaimlerChrysler with the electronic throttle control for the North American volumes of the engine, which are produced in Dundee, Michigan. This system provides unlimited calibration possibilities for improved drivability and fuel economy. Production is expected to begin in late 2005.

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. 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.