BorgWarner Supplies Dual-Clutch Modules to Automaker in China

BorgWarner United Transmission Systems Co., Ltd., a BorgWarner

majority-held joint venture with 12 leading Chinese automakers in Dalian, China, has recently started delivery of its DualTronic® control modules and clutch modules with integral torsional dampers for SAIC Motor Corporation's new six-speed wet dual-clutch transmission (DCT), the first developed completely in-house by a domestic Chinese automaker. Introduced at the 15th annual Shanghai International Automobile Industry Exhibition (Auto Shanghai) in April, the transmission improves shift quality, durability and reliability and debuts in the Roewe 550 midsize sedan in 2013. SAIC Motor plans to equip additional models, including the Roewe 350 and 750, with BorgWarner's wet dual-clutch technology in the future. "After several years of development efforts, we have taken an important step to establish our DualTronic wet-clutch technology in the fast-growing dual-clutch transmission market in China," said Robin Kendrick, President and General Manager, BorgWarner Transmission Systems. "BorgWarner is pleased to support our Chinese joint venture partners with our high-performance DCT technology, which provides improved fuel economy and a dynamic driving experience." BorgWarner's DualTronic clutch module uses two wet clutches to engage the odd and even gears respectively, allowing shifts within fractions of a second with no perceived interruption of powerflow. BorgWarner's DualTronic control module employs low-leakage electro-hydraulic solenoids to precisely control the clutch and the transmission's gearshift actuation system for responsive shifting and dynamic performance. Featuring tunable launch characteristics, high thermal robustness, scalable torque capacity and a compact package, BorgWarner's dual-clutch technology delivers fuel economy that rivals single-clutch automated gearboxes and shift quality that rivals the best conventional automatic transmissions. Both DualTronic modules are being built at the BorgWarner United Transmission Systems plant in Dalian, China, and include components from BorgWarner plants and joint ventures in Beijing and Shanghai. About BorgWarner Auburn Hills, Michigan-based BorgWarner Inc.

is a technology leader in highly engineered components and systems for powertrain applications worldwide. Operating manufacturing and technical facilities in 57 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 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 outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "initiative," "intends," "outlook," "plans," "potential," "project," "pursue," "seek," "should," "target," "when," "would," 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 by original equipment manufacturers of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, as well as other risks noted reports that we file 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 or announce publicly any updates to or revision to any of the forward-looking statements.