BorgWarner Receives 2006 'Invest in France Automotive Award' From French Government for Investment in France

New plant built in response to demand for DualTronic(R) transmission technology

AUBURN HILLS, Mich., April 5 -- In response to increasing demand for BorgWarner DualTronic(R) transmission technology in Europe and associated new business gained in transmission controls systems, BorgWarner broke ground in December 2005 for a new, 160,000-square-foot facility in Eyrein, north of Tulle, Correze, France. The project has resulted in a 2006 Invest in France Award from the French government, which recognizes significant new investments in that country.

BorgWarner Chairman and CEO Tim Manganello and BorgWarner Transmission Systems President and General Manager Bernd Matthes accepted the award from Mrs. Clara Gaymard, Ambassador-at-large for International Investment and President of Invest In France, at an April 4 ceremony at the Detroit Institute of Arts.

"We are delighted to accept this award, and are very encouraged by the growth of dual-clutch transmissions in Europe," said Mr. Manganello. "BorgWarner is pleased to expand its capabilities in France in order to accommodate increased production of DualTronic(R) controls systems and other transmission products. We believe the momentum for this technology will continue to increase, as more customers and drivers experience the fuel economy and performance benefits of this exciting technology."

DualTronic(R) clutch and control module transmission technology enables a conventional-looking gearbox to function as a fully automatic transmission while delivering performance and fuel economy that rivals a manual transmission. The technology was honored with a 2005 Automotive News PACE Award, which recognizes automotive suppliers for superior innovation, technological advancement and business performance.

Total BorgWarner DualTronic(R) technology programs announced to date represent about 1.5 million transmissions per year at full production volumes. The company expects the demand for this type of technology to grow to 25 percent of the European passenger car market by 2015.

In Europe, the technology is currently available on a range of other VW and Audi vehicles, including the VW Golf R32; the Audi TT; 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. BorgWarner recently announced that DualTronic(R) is also available on the Skoda Laura in India.

BorgWarner's new operation in France will include application engineering, testing and manufacturing capabilities. The company currently manufactures solenoids and transmission control modules at a plant in Tulle, and plans to move that operation's employees and production to the new facility when it is completed this summer.

BorgWarner Transmission Systems is a supplier to virtually every automatic transmission manufacturer in the world. It produces "shift quality" components and systems including one-way clutches, transmission bands, friction plates and clutch-pack assemblies, and controls including transmission solenoids, control modules and integrated mechatronic control systems.

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, VW/Audi, DaimlerChrysler, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, BMW, Caterpillar, Navistar International, and Peugeot. The Internet address for BorgWarner is: http://www.borgwarner.com/ .