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BorgWarner Receives Commitment for its Automated Transmission Technology

20 September 2000

BorgWarner Receives First Commitment for its New-Concept Automated Transmission Technology for Fuel Economy, Convenience, Sporty Feel

    CHICAGO, Sept. 19 - BorgWarner has received a letter of
intent from a major European auto maker to supply the first application of wet
clutch and control system technology for a new concept OEM automated
transmission.  The potential market for the technology is expected to exceed
$1 billion in annual sales in the future.
    "BorgWarner, which introduced one of the industry's first automatic
transmissions in the 1950s, is again redefining the driving experience through
innovation," said John F. Fiedler, BorgWarner chairman and CEO.  "By combining
our electrohydraulic controls know-how with our advancements in wet friction
materials and friction systems, we've created a formula that now enables
commercialization of an idea that has existed since the 1980s."  Fiedler said
the new technology enables a manual transmission to evolve and perform like a
conventional automatic transmission yet deliver significantly improved vehicle
fuel economy.
    Fiedler said the new concept was conceived originally with the European
driver in mind -- one who values an enthusiastic and sporty driving
experience, but who continues to demand improved fuel efficiency and the
convenience of the automatic while navigating congested cities.  With the new
system, starting and shifting characteristics can be easily adapted to achieve
a very smooth feel that rivals the conventional automatic transmission
generally preferred in markets outside of Europe.  Fiedler said that
BorgWarner expects the market for this technology to grow from virtually
nothing today to 25 percent of the European market by 2008.
    "The successful cross-business union of the wet-clutch expertise of
BorgWarner Transmission Systems with the advanced control strategies of
BorgWarner Air/Fluid Systems has resulted in a very exciting and
high-potential new technology," said Fiedler.  "We are proud to add this
concept to our long list of industry innovations as more evidence of our
continued commitment to product leadership on behalf of our customers."
    Dr. Bernd Matthes will serve as General Manager of the program, which will
be based at the BorgWarner European Advanced Transmission Development Center
in Ketsch, Germany.  Before being named program manager for the project in
late 1998, Dr. Matthes was Chief Engineer for BorgWarner's Transmission
Systems operations in Heidelberg for five years.