BorgWarner/Hitachi Strategic Alliance Creates Significant Growth Potential For Four-Wheel Drive Business

Apr 03, 2001, 01:00 ET from BorgWarner

    CHICAGO, April 3 /PRNewswire/ -- BorgWarner (NYSE:   BWA), the world's
 largest independent producer of transfer cases for four-wheel and all-wheel
 drive systems, has married its expertise in developing control strategies for
 its transfer cases with the manufacturing strength and efficiency of Hitachi
 Automotive Products (USA), one of the world's largest electronics companies.
 The strategic alliance should initially increase production capacity for
 BorgWarner TorqTransfer Systems' electronic control unit (ECU) threefold, from
 200,000 to 600,000 units.
     But it isn't just a matter of numbers, according to Tim Manganello,
 President of BorgWarner TorqTransfer Systems.  "We can now continue to
 prioritize our focus on development of the control algorithms, including
 writing all of the software for those controls, which is the intelligence of
 the ECU.  This will further differentiate BorgWarner from our competition and
 provide a greatly enhanced product.  We have become a stronger company as a
 result of our new relationship with Hitachi Automotive Products (USA)."
     The trend in automotive control technologies is in the integration and
 attachment of the ECU to the torque management device, such as a transfer case
 or InterActive Torque Management(TM) system, sometimes in much harsher,
 exposed environments, compared with a more traditional installation in the
 "friendly" confines of the passenger compartment of the vehicle.  Hitachi
 Automotive Products (USA) has the current technology to achieve these
 integrations with a high-capacity, high-volume manufacturing capability.
 Additionally, Hitachi's purchasing power and breadth of experience promises to
 bring cost benefits to the OEMs and to dramatically shorten times to market.
     BorgWarner TorqTransfer Systems is the largest independent global designer
 and producer of transfer cases and systems for four-wheel and all-wheel drive
 vehicles for the sport-utility and light truck markets.  Its systems enhance
 driver security, driveability and ease of use.  Chicago-based BorgWarner
 (NYSE:   BWA) is a product leader in highly engineered components and systems
 for vehicle powertrain applications worldwide.  The company operates
 manufacturing and technical facilities in 46 locations in 13 countries.
 Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar,
 Navistar International and VW Group.  The Internet address for BorgWarner is
 http://www.bwauto.com .  For additional information, contact BorgWarner
 Corporate Communications at (312) 322-8500.
     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 "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, which could cause
 actual results to differ materially from those projected or implied in
 the forward-looking statements.  Such risks and uncertainties include:
 fluctuations in domestic or foreign automotive production, the continued use
 of outside suppliers by original equipment manufacturers, fluctuations in
 demand for vehicles containing the Company's products, general economic
 conditions, as well as other risks detailed in the Company's filings with the
 Securities and Exchange Commission, including the Cautionary Statements filed
 as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 2000.
 
 

SOURCE BorgWarner
    CHICAGO, April 3 /PRNewswire/ -- BorgWarner (NYSE:   BWA), the world's
 largest independent producer of transfer cases for four-wheel and all-wheel
 drive systems, has married its expertise in developing control strategies for
 its transfer cases with the manufacturing strength and efficiency of Hitachi
 Automotive Products (USA), one of the world's largest electronics companies.
 The strategic alliance should initially increase production capacity for
 BorgWarner TorqTransfer Systems' electronic control unit (ECU) threefold, from
 200,000 to 600,000 units.
     But it isn't just a matter of numbers, according to Tim Manganello,
 President of BorgWarner TorqTransfer Systems.  "We can now continue to
 prioritize our focus on development of the control algorithms, including
 writing all of the software for those controls, which is the intelligence of
 the ECU.  This will further differentiate BorgWarner from our competition and
 provide a greatly enhanced product.  We have become a stronger company as a
 result of our new relationship with Hitachi Automotive Products (USA)."
     The trend in automotive control technologies is in the integration and
 attachment of the ECU to the torque management device, such as a transfer case
 or InterActive Torque Management(TM) system, sometimes in much harsher,
 exposed environments, compared with a more traditional installation in the
 "friendly" confines of the passenger compartment of the vehicle.  Hitachi
 Automotive Products (USA) has the current technology to achieve these
 integrations with a high-capacity, high-volume manufacturing capability.
 Additionally, Hitachi's purchasing power and breadth of experience promises to
 bring cost benefits to the OEMs and to dramatically shorten times to market.
     BorgWarner TorqTransfer Systems is the largest independent global designer
 and producer of transfer cases and systems for four-wheel and all-wheel drive
 vehicles for the sport-utility and light truck markets.  Its systems enhance
 driver security, driveability and ease of use.  Chicago-based BorgWarner
 (NYSE:   BWA) is a product leader in highly engineered components and systems
 for vehicle powertrain applications worldwide.  The company operates
 manufacturing and technical facilities in 46 locations in 13 countries.
 Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar,
 Navistar International and VW Group.  The Internet address for BorgWarner is
 http://www.bwauto.com .  For additional information, contact BorgWarner
 Corporate Communications at (312) 322-8500.
     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 "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, which could cause
 actual results to differ materially from those projected or implied in
 the forward-looking statements.  Such risks and uncertainties include:
 fluctuations in domestic or foreign automotive production, the continued use
 of outside suppliers by original equipment manufacturers, fluctuations in
 demand for vehicles containing the Company's products, general economic
 conditions, as well as other risks detailed in the Company's filings with the
 Securities and Exchange Commission, including the Cautionary Statements filed
 as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 2000.
 
 SOURCE  BorgWarner

RELATED LINKS

http://www.bwauto.com