The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

BorgWarner Awarded Two New European DualTronic(TM) Programs With New Customers

AUBURN HILLS, Mich., Aug. 16, 2005 -- BorgWarner has been awarded two new European programs with two new customers for its fuel- efficient DualTronic(TM) transmission technology. The programs, which start production in 2007, are for vehicle types that range from compact and mid- sized to luxury passenger cars and sport-utility vehicles. Combined annual production is expected to be 600,000 units at full production volumes.

"Adding business with new DualTronic(TM) customers is an integral part of BorgWarner's growth strategy," said Tim Manganello, BorgWarner Chairman and CEO. "Having demonstrated the technology's popularity with VW/Audi and the drivers of its vehicles, I'm pleased to announce that two new customers will be using DualTronic(TM) for new transmission programs. We are delighted to see the momentum for this technology continuing to build, and to bring its benefits to two new customers who value fuel economy and an exceptional driving experience."

BorgWarner DualTronic(TM) is an industry-first wet-clutch and control- system technology for automated transmissions. It enables a conventional manual gearbox to function as a fully automatic transmission while delivering emissions and fuel economy improvements of up to 15 percent over traditional automatics, depending on the application. The technology also eliminates the "torque-interrupt" feeling that occurs when a manual or automated manual transmission shifts gears, enabling a smooth, yet sporty, fun-to-drive vehicle performance. BorgWarner expects the demand for this technology to grow to 20 percent of the European passenger car market by 2015.

"The innovative combination of BorgWarner's electrohydraulic controls know-how with our advancements in wet-friction materials and clutch systems has resulted in a fuel-efficient and exhilarating driving experience," said Bernd Matthes, President and General Manager, BorgWarner Transmission Systems. "The combination is clearly resonating with more and more customers and with the driving public."

DualTronic(TM) debuted to rave reviews on the VW Golf R32 DSG and the Audi TT 3.2 in 2003. The technology is now available on a range of VW and Audi vehicles introduced since then, including the diesel and turbocharged direct- injected gasoline engine versions of the VW Golf, the VW Touran, the VW Passat; the VW Jetta; the Audi A3 Sportback; the Skoda Octavia; and the Seat Altea, Toledo and Leon.

Auburn Hills, Michigan-based 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 62 locations in 17 countries. Customers include Ford, DaimlerChrysler, General Motors, VW/Audi, Toyota, Hyundai/Kia, Renault/Nissan, Honda, Caterpillar, Navistar International, Peugeot, and BMW. The Internet address for BorgWarner is: http://www.borgwarner.com/ .

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, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed, projected or implied in or by 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, 2004. The Company does not undertake any obligation to update any forward-looking statement.