BorgWarner has broken ground for a second manufacturing plant in Arnstadt Germany to build their DualTronic transmission modules. The DualTronic clutch system is the heart of the renowned Volkswagen/Audi DSG gearbox. The clutch system can be used with most conventional manual transmissions to allow them to function as either fully automatic or sequential shift manual transmissions. The system takes advantage of the inherent mechanical efficiency of a conventional manual gearbox but allows two-pedal driving. The new plant will be finished in November and will double BorgWarner's existing capacity.

[Source: BorgWarner]
BorgWarner Breaks Ground for Second Dual-Clutch Production Plant in Germany

AUBURN HILLS, Mich., May 2 /PRNewswire-FirstCall/ -- Driven by growing global demand for its dual-clutch transmission technology, known as DualTronic(R), BorgWarner Transmission Systems has broken ground for a second manufacturing facility at its Drivetrain campus in Arnstadt, Germany. When completed in November, it will double the manufacturing area of the current site to over 107,000 square feet (10,000 square meters) and is expected to create 150 new jobs by 2010. During the next few years, the company will invest nearly $35 million (euro 26 million) to expand the site, which will include a dedicated vehicle lab and test track for on-site vehicle evaluation.

'Around the world, drivers are enjoying the improved fuel economy and dynamic performance of DualTronic technology,' said Dr. Bernd Matthes , President and General Manager, BorgWarner Transmission Systems. 'Expanding our manufacturing capacity and capabilities in Germany will help BorgWarner meet the growing needs of our new and existing customers.'

BorgWarner was first-to-market with dual-clutch transmission technology, launching its award-winning DualTronic innovation on two VW/Audi models in 2003 with applications on additional models and production volumes increasing steadily since then.

BorgWarner DualTronic clutch and transmission control technology enables a conventional, manual gearbox to function as a fully automatic transmission by eliminating the interruption that occurs when a manual transmission shifts gears, while delivering performance and fuel economy that rival that of a manual transmission. BorgWarner has announced five programs with four customers, including VW/Audi, Getrag, another European OEM and SAIC in China. Total BorgWarner dual-clutch technology applications announced to date represent over 1.5 million transmissions per year at full production volumes.

BorgWarner Transmission Systems is a supplier to virtually every automatic transmission manufacturer in the world. It produces 'shift quality' components and systems including one-way clutches, transmission bands, friction plates and clutch-pack assemblies, and controls including transmission solenoids, control modules and integrated mechatronic control systems.

Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) 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, DaimlerChrysler, Ford, 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 its most recently filed annual report on Form 10-K. The Company does not undertake any obligation to update any forward-looking statement.


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