BorgWarner Expects $2.9 Billion Of Net New Business For 2014 Through 2016

  BorgWarner Expects $2.9 Billion Of Net New Business For 2014 Through 2016

PR Newswire

AUBURN HILLS, Mich., Nov. 5, 2013

AUBURN HILLS, Mich., Nov. 5, 2013 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA)
today announced $2.9 billion of expected net new powertrain business for 2014
through 2016, up 26% from the previous three-year net new business. Demand
for the company's advanced powertrain technologies, such as gasoline and
diesel turbochargers, all-wheel drive systems, engine timing systems including
variable cam timing devices, and emissions products, is expected to continue
to drive strong growth.

BorgWarner is a leading provider of highly engineered engine and drivetrain
components and systems that help improve fuel efficiency, emissions and
vehicle performance. The company's new business is sourced around the globe
and includes programs with nearly every major automaker in the world.

"Improving fuel economy, lowering emissions and enhancing the driving
experience are increasingly important strategic initiatives for automakers
around the world," said James R. Verrier, President and Chief Executive
Officer. "BorgWarner is uniquely positioned among vehicle suppliers to
deliver powertrain technologies that help automakers meet these objectives.
We believe our fuel-efficient technologies will be in high demand as the
industry continues to implement advanced powertrain strategies."

Of the total new business, approximately 80% is anticipated from
engine-related products such as turbochargers, ignition systems, emissions
products, engine timing systems including variable cam timing devices and
thermal systems. The remaining approximate 20% is expected from
drivetrain-related products including all-wheel drive systems and the
company's fuel-efficient DualTronic^® transmission technology and its
traditional automatic transmission products.

"We have outpaced the growth of the industry by developing fuel-efficient
technologies that meet the needs of the global market," Verrier continued.
"We expect this trend to continue. The European market accounts for
approximately 27% of our expected new business compared with 30% in the
previous three-year net new business. Europe remains an important growth
market for our company, however the adoption of our advanced powertrain
technology in other parts of the world is expected to outpace Europe over the
next few years. New business sales in Asia are expected to account for about
47% of the total by the end of the period. Approximately 32% of our expected
new business is in China as our sales to the world's fastest growing market
continue to accelerate. The top twenty-five customers of our three-year net
new business include eight Chinese domestic original equipment manufacturers
("OEMs"). Approximately 26% of the anticipated new business over the three
years is in the Americas; this includes 19% with the North American domestic
OEMs compared with 11% in the previous three-year net new business."

"Tightening emissions standards and a sharpened focus on fuel economy in the
commercial vehicle market is expected to provide additional growth for
BorgWarner. The top twenty-five customers of our three-year net new business
include five commercial vehicle OEMs. Approximately 13% of the expected new
business is related to the commercial vehicle market."

Turbochargers account for about 50% of the company's net new business, with
growth in the commercial vehicle, diesel passenger car and gasoline passenger
car markets. Turbocharging is a key strategy employed by vehicle
manufacturers to address the issues of fuel efficiency and emissions reduction
while maintaining vehicle performance. Turbochargers produced for light and
commercial vehicle OEMs is expected to grow nearly 50% over the next five
years, from approximately 31 million units produced in 2013 to approximately
46 million in 2018.

Another 7% of the new business is tied to the company's dual-clutch
technology. The technology provides the fuel-efficiency and fun-to-drive
characteristics of a manual transmission with the convenience and smooth
shifting of an automatic. The number of dual-clutch transmissions produced is
expected to more than double over the next five years to over 9 million units
by 2018.

The company's forecast for the U.S. Dollar to Euro exchange rate for new
business over the three-year period is $1.31, up from $1.25 for its previous
three-year net new business. However, the company expects most other foreign
currencies to be weaker for new business over the three-year period compared
with the previous three-year net new business, which more than offsets the
anticipated impact of a stronger Euro.

Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a technology
leader in highly engineered components and systems for powertrain applications
worldwide. Operating manufacturing and technical facilities in 56 locations in
19 countries, the company develops products to improve fuel economy, reduce
emissions and enhance performance. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW,
Honda, John Deere, PSA, and MAN. For more information, please visit
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 "outlook," "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 BorgWarner Inc.

Website: http://www.borgwarner.com
Contact: Ken Lamb, 248.754.0884
 
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