BorgWarner Brings Active All-Wheel Drive to Chery China

AUBURN HILLS, Mich., Jan. 10, 2006 -- BorgWarner will supply its ITM 3e(TM) torque management system for the Chery Tiggo 4x4i, the first domestic OEM-designed crossover vehicle (COV) to be built in China using an active rather than passive all-wheel drive system.

"We are proud to launch another front-wheel, all-wheel drive application using BorgWarner's new ITM 3e(TM) system, and we're delighted to bring to drivers of the Chery Tiggo the enhanced vehicle traction, stability and drivability that the system provides," said Cindy Niekamp, President and General Manager, BorgWarner TorqTransfer Systems. "As a global leader in advanced front-wheel drive/all-wheel drive technology, we are pleased to introduce our active all-wheel drive systems to the Chinese market."

The ITM 3e(TM) system is the latest, next-generation interactive technology available as part of BorgWarner's growing iTrac(TM) torque management systems portfolio, a full-line of active torque management devices focused on the needs of the expanding front-wheel drive/all-wheel drive market. In addition to providing the ITM 3e(TM) hardware, BorgWarner will also supply the Chery Tiggo with the electronics, software controls and electronics vehicle integration support. These capabilities are core competencies of BorgWarner that distinguish it from the competition and provide automakers like Chery with outstanding vehicle performance.

The ITM 3e(TM) system uses sophisticated controls and algorithms to sense slip, and converts the front-wheel drive-based platform to all-wheel drive within milliseconds. This enhances vehicle handling and traction by optimally using grip at both the front and rear wheels. At highway speeds, the system automatically reduces power transfer to the rear wheels to enhance fuel economy over other all-wheel drive systems. In addition, the ITM 3e(TM) system is designed to work in cooperation with other vehicle systems like anti-lock brakes and electronic stability programs to further enhance traction and stability.

BorgWarner TorqTransfer Systems is a leading independent global designer and producer of transfer cases and torque management devices for all-wheel drive passenger cars, crossover vehicles, sports-utility vehicles and light trucks. These systems enhance vehicle stability, security, and drivability.

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 61 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/ .