BorgWarner Provides 2007 Guidance Expects to Maintain Historical Growth Levels and Profitability

AUBURN HILLS, Mich., Jan. 11, 2007 -- BorgWarner Inc. today provided 2007 earnings guidance of $4.60 to $4.80 per diluted share on a U.S. GAAP basis. Earnings growth is expected to be in line with BorgWarner historical growth rates of greater than 10%.

"In 2007, our global business will face two distinct business environments. In Europe and Asia, our operations are expected to flourish, experiencing strong growth across both Engine and Drivetrain, while our North American operations will remain focused on stabilization and adapting to the new dynamics of a rapidly changing market," said Tim Manganello, BorgWarner Chairman and CEO. "Ultimately, we expect that our technologies, developed to enhance fuel economy, performance, vehicle stability and emissions, will drive growth in 2007 and beyond."

BorgWarner expects to achieve sales growth in a range of 7% to 9% despite moderate global vehicle production growth in 2007. North American vehicle production is expected to be down marginally, European vehicle production is expected to be up slightly, and solid growth is anticipated in Asia. The impact of foreign currencies in 2007, versus 2006, is expected to be minimal.

The company expects 2007 operating margins to be up from 2006, toward the low end of its historical range of 8.5% to 9.0%. The expectation of improved margins can be largely attributed to incremental income from net new business, the impact of third quarter 2006 headcount reductions in North America, and an intensified focus on cost reductions, which is expected to more than offset the incremental margin lost on lower sales in North America, continued raw material cost pressures, rising healthcare costs and the costs related to global expansion.

Today, at approximately 11:15 am ET, the company will webcast its presentation at the Auto Analysts of New York conference in Dearborn, Michigan, which will include a discussion of its guidance. The webcast can be accessed at: http://www.borgwarner.com/invest/webcasts.shtml.

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/.

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 Risk Factors identified in the Form 10-K for the fiscal year ended December 31, 2005. The Company does not undertake any obligation to update any forward-looking statement.