BorgWarner DualTronic Automated Transmission Technology Debuts on VW Golf R32 and Audi TT 3.2

     CHICAGO, Jan. 8, 2003; The first application of
BorgWarner DualTronic(TM), 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.  The
new technology enables a manual transmission to evolve and perform like an
automatic transmission, yet deliver significantly improved vehicle fuel
economy over automatic transmissions of today.  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.
    However, 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 product 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. The Internet address for BorgWarner is: http://www.bwauto.com .