BorgWarner Expects $1.6B Bonanza from Push for Fuel Economy

2 November 2005

BorgWarner expects to net $1.6 billion in new powertrain business for 2006 through 2008, propelled by its engine and drivetrain components and systems that improve fuel economy and reduce emissions, according to Timothy M. Manganello, chairman and chief executive officer.

The company’s new business is expanding most rapidly in the diesel car and truck markets, in emerging markets like China, and with Japanese, Korean and European automakers.

About 60% of the new business is expected to be in engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The other 40% is expected in transmission modules and all-wheel drive systems.

With the rise in world fuel prices, BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies, in a broad range of products, that address fuel economy. We believe, over the next three years, our fuel-efficient technology will clearly be a strong growth catalyst for new business as we continue to serve the needs of our global customer base.

—Timothy Manganello

The company expects noteworthy new business during the 2006 through 2008 period to include:

• Next generation passenger car turbochargers for a number of European OEMs

• Advanced turbochargers for light truck programs in North America and commercial vehicle programs in Europe and North America

• Emissions products for a variety of applications and for an expanding customer base worldwide

• Thermal systems for a variety of commercial and light truck applications, including diesel pickups in North America

• Chain-driven timing systems for North American, European and Asian OEMs

• Variable cam timing for North American and European OEMs

• Transmission shifting assemblies and controls for new North American six-speed transmissions, and for transmissions used on hybrid vehicles