BWA BorgWarner Inc

BorgWarner Expects $1.4 Billion in New Business for 2005-2007; Fuel-Efficient Engine and Drivetrain Technology Drive Worldwide Growth CHICAGO, Nov. 3 /PRNewswire-FirstCall/ -- BorgWarner Inc. (NYSE:BWA) today announced $1.4 billion of expected net new powertrain business for 2005 through 2006, providing growth anticipated to outpace that of the auto industry. As a leading provider of highly engineered engine and drivetrain components and systems to vehicle makers worldwide, the company's new business is expanding most rapidly with automakers including Volkswagen/Audi, General Motors and Hyundai/Kia. About 66% of the new business is expected to be engine-related products such as turbochargers, engine timing systems, variable cam timing modules and emissions/thermal products. The other 34% is expected in transmission modules and four-wheel/all-wheel drive systems including the company's first to market technology for DualTronic(TM) transmission systems and InterActive Torque Management(TM) systems. "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," said Timothy M. Manganello, chairman and chief executive officer, who is presenting the new business outlook today at the 28th Annual Automotive Symposium sponsored by Gabelli & Company. "With BorgWarner's anticipated acquisition of Beru AG, we have strengthened our technology even further, particularly in the expanding diesel market and electronic controls area." Manganello pointed out that the anticipated growth in BorgWarner's new business, as well as volume increases in existing business with its global customers, positions the company to continue to deliver growth consistent with its past track record. He also noted that in 2006, about 40% of the company's sales are anticipated from the traditional "Big Three" automakers while the remaining 60% will come from other global car and truck makers. "Our new business is expected to provide balanced growth around the world, even if auto production is flat," said Manganello. "Growth in North America with both the Japanese and domestic automakers accounts for 45% of the new business over the three years. Europe remains our fastest growing market with 34% of our new business. As our expansion in Asia continues, those markets are expected to account for about 20% of our new business by the end of the period," he said. The company expects significant customer programs during the 2005 through 2007 period to include: Engine Group -- Next generation passenger car turbochargers in Europe for VW and Audi, Renault, PSA, BMW, Ford and Fiat -- Turbochargers for light truck programs in North America and commercial vehicle programs in Europe and North America -- Emissions and thermal products for Asian and European car and truck makers and the DaimlerChrysler world engine -- Chain-driven timing systems for Honda, Nissan, Hyundai and a Chinese OEM, and for the DaimlerChrysler world engine program -- Variable cam timing for OEMs in North America Drivetrain Group -- DualTronic transmission technology for four European programs -- Electronic all-wheel drive for a major North American OEM and for Hyundai, Honda and a Chinese automaker -- Four-wheel drive systems for General Motors and a major European automaker New business programs are expected to yield approximately $400 million in sales in 2005, with the remainder in the next two years. The value will depend on production volumes, launch timing and currency. BorgWarner Inc. (NYSE:BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. Investor conferences are webcast at: http://www.bwauto.com/investor_webcasts.html . 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 Cautionary Statements filed as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 2003. The company does not undertake any obligation to update any forward-looking statement. DATASOURCE: BorgWarner Inc. CONTACT: Mary Brevard, +1-248-373-2406, or Beth Feikens, +1-248-373-7962, both of BorgWarner Inc. Web site: http://www.bwauto.com/ http://www.bwauto.com/investor_webcasts.html

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