January 10, 2003

BorgWarner DualTronic transmission debuts on VW Golf R32 and Audi TT 3.2

Chicago, Illinois – The first application of BorgWarner DualTronic, the company’s wet-clutch and control-system technology for a new concept automated transmission, will debut on the VW Golf R32 DSG beginning next month, and on the Audi TT 3.2 beginning in March in the U.S. – the cars are not available in Canada.

The new technology enables a manual transmission to perform like an automatic transmission, yet deliver significantly improved vehicle fuel economy over current automatic transmissions. The initials DSG stand for direct-shifting gearbox.

“BorgWarner, whose affiliates introduced one of the industry’s first automatic transmissions in the 1950s, is again redefining the driving experience through innovation,” said John F. Fiedler, BorgWarner Chairman and CEO. “By combining our electrohydraulic controls know-how with our advancements in wet friction materials and friction systems, we’ve created a formula that now enables commercialization of an idea that has existed since the 1980s.”

Fiedler said the new concept was conceived originally with the European driver in mind – one who values an enthusiastic and sporty driving experience, but who continues to demand improved fuel efficiency and the convenience of the automatic when 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 outside of Europe. BorgWarner expects the demand for this technology to grow from virtually nothing today to 18 percent of the European passenger car market by 2010, and to gain a foothold in North America and Japan during that time.

“BorgWarner DualTronic technology offers attractive features for the 80 percent of Europeans who drive manual transmissions and pay up to $5 a gallon for gas – and for North American drivers who want improved responsiveness with lower fuel consumption,” Fiedler said.

Development of the system for VW was the result of collaboration between engineers throughout BorgWarner’s network of technology centers, and centered at the BorgWarner European Advanced Transmission Development Center in Ketsch, Germany.

Fiedler said BorgWarner expects to announce at least two more customers for DualTronic in 2003. “Combining our wet-clutch expertise with our advanced control strategies has resulted in a very exciting and high-potential new technology from BorgWarner’s Driveline Group,” he said.

“DualTronic is an integral part of our growth strategy.” The business with VW and Audi is part of the $1.2 billion in new business for 2003 through 2005 announced by BorgWarner late last year.

Chicago-based BorgWarner Inc. is a leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 50 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Caterpillar, Navistar International, PSA, Renault, ZF and VW Group. BorgWarner is on the web at www.bwauto.com .

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