BorgWarner Brings First Dual-Clutch Transmission Technology to China

AUBURN HILLS, Mich., Oct. 31, 2006 -- BorgWarner Inc. will provide its industry-first DualTronic(R) transmission technology to Shanghai Automobile Gear Works Co. Ltd. (SAGW), a subsidiary of Shanghai Automotive Industry Co. Ltd. (SAIC), for the development of China's first dual-clutch transmission.

"As a global powertrain technology leader, BorgWarner is proud to participate in introducing the first dual-clutch transmission to China," said Bernd Matthes, President and General Manager, BorgWarner Transmission Systems. "This collaboration means that drivers in China can now experience the same exhilarating performance and improved fuel economy that our European DualTronic(R) customers enjoy."

BorgWarner's DualTronic(R) technology enables a conventional-looking gearbox to function as a fully automatic transmission by eliminating the "torque-interrupt" feeling that occurs when a manual transmission shifts gears, while delivering performance and fuel economy that rival that of a manual transmission. DualTronic(R) debuted on the VW Golf R32 DSG and the Audi TT 3.2 in 2003, and is now found on a number of applications within VW Group.

"This advanced technology will be first applied in China in our new SAIC Roewe 750," said Mr. Yang Chunbao, Vice President, Shanghai Automotive Industry Co. Ltd. and President, Shanghai Automobile Gear Works Co. Ltd. "This is our first project with BorgWarner and we look forward to more cooperation in the future."

BorgWarner will develop and provide five production modules, which include the dual clutch, the torsional vibration damper, the hydraulic controls with shift actuation, the synchronizers and the hydraulic pump. The transmission assembly will be jointly developed by SAGW and GIF, a German engineering company. Transmission assembly production will be conducted at SAGW in China.

"We are excited about how the expertise of SAGW, GIF and BorgWarner have been combined to bring cutting-edge transmission technology solutions to the rapidly expanding China market," said Freeman Shen, President, BorgWarner China.

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 63 locations in 18 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/.

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