4th December 2007 - BorgWarner First Again With Revolutionary New Dual-Clutch Transmission Design for Small Cars

Emerging Markets Unique Architecture Delivers Additional Fuel Efficiency and Performance Improvements

As a leader in dual-clutch transmission technology, BorgWarner is once again revolutionizing the transmission market.  A unique new dual-clutch transmission for developing markets and small cars is in the final development stages at BorgWarner.  Working in conjunction with several Asian automakers, BorgWarner will be providing patent-pending dual-clutch transmission architecture that delivers fuel efficiency in an affordable package ideal for the growing small car demand in developing markets.

"Drivers in developing markets like China and India are looking for the ease of using an automatic transmission in an affordable vehicle," said Dr. Bernd Matthes, President and General Manager, BorgWarner Transmission Systems. "Up until now, the complexity and cost of automatic transmissions made it impractical to package this option in smaller cars.  With BorgWarner's new design, we can deliver the responsive, fuel-efficient, fun-to drive characteristics of a dual-clutch transmission in a smaller, more affordable package.  The unique architecture of our compact dual-clutch transmission is expected to expand the use of automatic transmissions in emerging markets. Test results with this transmission indicate a 13% fuel efficiency improvement, better top-end speed and a significant improvement in acceleration over automatic transmissions currently in production."

BorgWarner's compact DualTronic(R) dual-clutch transmission design is expected to provide similar performance and efficiency to the driving experience in small and sub-compact cars that made its original dual-clutch technology attractive in larger vehicles. At the same time, the company is significantly reducing the complexity of the transmission hardware.

"The competition in this fast-growing and high-potential market segment is fierce and extremely motivating," Matthes said. "Together with our OEM partners, we are working relentlessly to craft affordable, differentiating systems that distinguish our customers' products from their competition and keep BorgWarner at the forefront of transmission technology."

Working with these partners, BorgWarner is currently testing and refining its first phase transmission hardware and controls software. BorgWarner expects production implementation of its new compact dual-clutch transmission design within two to three years.

The patent-pending "power split" design of the new transmission uses a large number of common and simplified parts and modules which enhance the affordability of the transmission, the ease of packaging in small vehicles and the manufacturability of the transmission in emerging markets.  The small vehicle segment is expected to grow 30% over the next five years from about 19 million to almost 25 million cars.

BorgWarner leads the globalization of dual-clutch transmission technology with awarded business in Europe, North America and Asia.  Customers include VW, Audi, Bugatti, SAIC, Nissan and Getrag dual-clutch transmission programs with five additional global automakers. At full-launch of announced programs, the company will be providing its innovative DualTronic(R) technology to an expected 2.3 million dual-clutch transmissions per year.  The company launched the first commercial production of dual-clutch transmission technology in Europe in 2003 with VW/Audi. Today, BorgWarner is working on over 20 programs with transmission and vehicle makers around the world.

BorgWarner's family of DualTronic(R) dual-clutch transmission technology now includes controls modules for both wet and dry dual-clutch applications, wet clutch modules, synchronizers, and the new compact DualTronic(R) transmission.  The technology combines the efficiency of a manual gearbox with the functionality of a fully automatic transmission, delivering seamless powerflow, improved fuel efficiency, and a fun-to-drive experience.  Global manufacturing capacity for BorgWarner dual-clutch transmission technology is supported by its facilities in the United States, Germany, France and China, and a new facility in Mexico.

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 64 locations in 17 countries. Customers include VW/Audi, Ford, General Motors, Toyota, Hyundai/Kia, Daimler, Renault/Nissan, Chrysler, Navistar International, Fiat, BMW, Honda, PSA and Caterpillar. The Internet address for BorgWarner is: 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 our control, 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 vehicle production, the continued use of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, and other risks detailed in our filings with the Securities and Exchange Commission, including the Risk Factors, identified in our most recently filed Annual Report on Form 10-K.  We do not undertake any obligation to update any forward-looking statements.

Source: Borg Warner Press Release