BorgWarner Expects $1.6 Billion in New Business for 2006-2008; Worldwide Focus On Fuel Economy Drives Growth

AUBURN HILLS, Mich., Nov. 2, 2005 -- BorgWarner Inc. today announced $1.6 billion of expected net new powertrain business for 2006 through 2008, providing growth anticipated to outpace that of the auto industry. As a leading provider of highly engineered engine and drivetrain components and systems that improve fuel economy and reduce emissions, the company's new business is expanding most rapidly in the diesel car and truck markets, in emerging markets like China, and with Japanese, Korean and European automakers.

About 60% of the new business is expected to be in engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The other 40% is expected in transmission modules and all-wheel drive systems, including the company's fuel-efficient DualTronic(TM) transmission technology, and electronic InterActive Torque Management(TM) systems.

"With the rise in world fuel prices, BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies, in a broad range of products, that address fuel economy," said Timothy M. Manganello, chairman and chief executive officer, who is presenting the new business outlook today at the 29th Annual Automotive Symposium sponsored by Gabelli & Company. "We believe, over the next three years, our fuel-efficient technology will clearly be a strong growth catalyst for new business as we continue to serve the needs of our global customer base. Our customer base, one of the most diverse in the industry, continues to expand through new business. With the addition of Beru, we have strengthened our technology even further, particularly in the expanding diesel market and electronic controls area."

Manganello pointed out that the anticipated growth in BorgWarner's new business, as well as volume increases in existing business with its global customers, positions the company to continue to deliver growth consistent with its past track record.

"As auto production growth shifts away from developed economies, our new business is expected to provide balanced growth around the world," said Manganello. "Growth in North America with both the Japanese and domestic vehicle makers accounts for approximately 30% of the anticipated new business over the three years. Europe accounts for 55% of our expected new business. As our expansion in Asia continues, sales there are expected to account for about 15% of our new business by the end of the period," he said.

The company expects noteworthy new business during the 2006 through 2008 period to include:

  Engine Group
  *  Next generation passenger car turbochargers for a number of European
     OEMs
  *  Advanced turbochargers for light truck programs in North America and
     commercial vehicle programs in Europe and North America
  *  Emissions products for a variety of applications and for an expanding
     customer base worldwide
  *  Thermal systems for a variety of commercial and light truck
     applications, including diesel pickups in North America
  *  Chain-driven timing systems for North American, European and Asian OEMs
  *  Variable cam timing for North American and European OEMs
  *  Beru's Tire Safety Systems and Instant Start Systems for various OEMs

  Drivetrain Group
  *  DualTronic transmission technology for four European programs that
     moves the technology further into the mainstream of high volume mid-
     market vehicles as well as up-scale luxury applications
  *  Transmission shifting assemblies and controls for new North American
     six-speed transmissions, and for transmissions used on hybrid vehicles
  *  Electronic all-wheel drive for a major North American OEM and for
     Korean, Japanese and Chinese OEMs
  *  Four-wheel drive systems for a number of major global OEMs

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. In addition, our forward looking statements regarding expected new business are dependent on, among other things, the accuracy of the production forecasts provided by our customers and may differ substantially from actual new business if any or some of the customer programs upon which these estimates are based are terminated, modified or delayed. The Company does not undertake any obligation to update any forward-looking statement.