BorgWarner Chosen as Driveline System Integrator for New Chery SUV

Auburn Hills, Mich., Oct. 1, 2007 -- BorgWarner TorqTransfer Systems has been selected by Chery Automobile Company as the driveline system integrator for a new all-wheel drive SUV, which will also feature BorgWarner's patented NexTrac(TM) technology along with BorgWarner control systems. As a driveline integrator, BorgWarner will specify system requirements and coordinate design and execution to provide a competitive edge in the marketplace.

"Drivers are migrating from larger, rear-wheel drive SUVs to the stability and fuel efficiency of front-wheel drive based all-wheel drive vehicles. As a global leader in advanced all-wheel drive technology, we are pleased to provide drivers with the enhanced vehicle traction, stability and handling the NexTrac(TM) system offers," said Cindy Niekamp, President and General Manager, BorgWarner TorqTransfer Systems. "We are honored that Chery has chosen BorgWarner to play an important role in driveline system integration of this new SUV."

As the newest member of BorgWarner TorqTransfer System's i-Trac(TM) portfolio of all-wheel drive products, NexTrac(TM) is an active on-demand all- wheel drive system that produces outstanding stability and traction while promoting better fuel economy as a result of technologies optimizing weight and higher efficiency compared with competitive products. The system is partnered with BorgWarner's controls software, which is custom designed to work in cooperation with other vehicle systems, including anti-lock brakes and electronic stability programs to further improve traction, stability, and performance.

BorgWarner TorqTransfer Systems is a leading independent global designer and producer of transfer cases and torque management devices for all-wheel drive passenger cars, crossover vehicles, sports-utility vehicles and light trucks. These systems enhance vehicle stability, security, and drivability.

Auburn Hills, Michigan-based BorgWarner Inc. 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, Ford, General Motors, Toyota, Hyundai/Kia, Daimler, Renault/Nissan, Chrysler, Navistar International, Fiat, BMW, Honda, PSA, and Caterpillar. The Internet address for BorgWarner is: http://www.borgwarner.com/.