BorgWarner Named Production Supplier by European Automaker

    CHICAGO, Sept. 6 BorgWarner has passed a
significant milestone in the commercialization of its DualTronic(TM)
wet-clutch and control system modules for a new concept automatic
transmission, in being recently named the production supplier of the modules
by a major European vehicle manufacturer.  Production is expected to begin in
2003.  The potential market for the new technology is expected to exceed $1
billion in annual sales in the future.

    "The successful union of BorgWarner Transmission Systems' wet-clutch
expertise with the electronic and electro-mechanical capabilities of
BorgWarner Air/Fluid Systems has enabled an entire new transmission solution
for our customer," said Bob Welding, President and General Manager, BorgWarner
Transmission Systems.

    "Our selection as production supplier is the culmination of a close
collaboration with this customer during the development phase of the project,"
Welding said.  "We are proud to have played a major role in the development
and market introduction of this, 'the world's next automatic transmission,'
and are excited about adding this technology to BorgWarner's long list of
industry innovations."

    The new transmission is an innovative combination of the fuel efficiency
of the traditional manual and the smooth and effortless shifting of an
automatic.  It was conceived with the European driver in mind -- one who
values an enthusiastic and sporty driving experience, but who also expects
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.

    BorgWarner expects the market for this technology to grow from virtually
nothing today to 25 percent of the European automobile market by 2008.
Because of the outstanding fuel efficiency of the transmission, exceeded only
by computer-controlled manual transmissions that exhibit jerkiness during
shifting, DualTronic(TM) is expected to be of increasing interest to
automakers in other markets as pressure intensifies to increase fuel
efficiency and to reduce vehicle emissions.

    Chicago-based BorgWarner is a product leader in highly engineered
components and systems for vehicle powertrain applications worldwide.  The
company operates manufacturing and technical facilities in 46 locations in
13 countries.  Customers include Ford, DaimlerChrysler, General Motors,
Toyota, Caterpillar, Navistar International and VW Group.  The Internet
address for BorgWarner is http://www.bwauto.com .  For additional information,
contact BorgWarner Corporate Communications at (312) 322-8500.