BorgWarner Acquires Electric Cabin Heater Business

LUDWIGSBURG, Germany, May 3 /PRNewswire-FirstCall/ -- In anticipation of market growth expected for its electric cabin heaters, BorgWarner BERU Systems has completed the acquisition of BERU-Eichenauer GmbH by acquiring the shares of its former joint venture partner, Eichenauer Heizelemente GmbH & Co. KG. The former 50/50 joint venture was formed in 2000 to develop and manufacture electric cabin heaters in Kandel, Germany. The acquisition formally took effect on May 1, 2010.

(Photo:  http://www.newscom.com/cgi-bin/prnh/20100503/DE97213 )

"Trends in electrification and down-sized internal combustion engines are expected to continue to drive demand for electric cabin heaters," explained Dr. Thomas Waldhier, President and General Manager, BorgWarner BERU Systems.

Whether gasoline, diesel, hybrid or electric, today's more efficient powertrains run cooler. When outside temperatures drop, these engines frequently do not provide enough heat to adequately warm the cabin or defrost the windshield. Installed as heating elements behind the coolant fluid heat exchanger, BorgWarner BERU System's electric cabin heaters generate warmth quickly and efficiently, providing drivers and passengers with a clear view and a comfortable ride. These high-power electric cabin heaters are currently being utilized in BMW Mini E rental vehicles in the United States, Great Britain, Germany and other countries.

BorgWarner BERU Systems is a worldwide leading supplier and manufacturer of diesel cold start technology and ignition technology for gasoline vehicles. Its electronics and sensor technology provide more comfort and safety for applications in various engine and vehicle functions with products such as direct-measuring tire pressure monitoring systems and sensors for applications in engines, powertrain and exhaust systems.

Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) 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 61 locations in 19 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN. The Internet address for BorgWarner is: http://www.borgwarner.com.

From compact mechanical solutions to electronically controlled comfort systems, BorgWarner BERU Systems offers customers and climate control equipment manufacturers flexible cabin heater solutions for internal combustion engines, hybrids or all-electric vehicles.

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 "outlook", "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, 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 of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, and other risks detailed in our filings 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 any forward-looking statements.

SOURCE BorgWarner Inc.