BWA 10 3Q StrongFutureSlides (PDF)

A Proud Past
A Strong Future

October 2010

Our Beliefs
Respect
Collaboration
Excellence
Integrity
Community

The BorgWarner Strategic Difference
ƒ Technology Focus
ƒ Customer & Geographic Diversity
ƒ Cost Control
ƒ Financial Strength

450%

350%

Global Production

250%

North American Production
150%

Compound Growth

BorgWarner Sales

50%

'93

-50%
'10E

2

BorgWarner = Powertrain Innovation
Engine

72% / SALES

Drivetrain

28% / SALES

Turbo Systems

Morse TEC (Chain)

Transmission Systems

4WD/AWD Systems

• Wastegate

• Engine Valve Timing Systems
• Timing Chain
• Variable Cam Timing
• HY-VO® Transmission Chain

• DualTronic® Clutch Modules
• DualTronic® Control Modules
• Solenoids / Solenoid Modules
• One-way Clutches
• Friction Plates
• Transmission Bands

• AWD Couplings
• Transfer Cases
• eGearDrive™ Electric
Drive Transmissions
• AWD Electronic Controls
and Systems Integration

• Variable Turbine Geometry
(VTG)
• Regulated 2-stage
(R2S™)

BERU Systems
Thermal Systems
• Thermal Management
Components and Systems
• Visctronic® Systems
• Fans/Fan Drives

Emissions Systems
• Exhaust Gas Recirculation
(EGR) Valves
• EGR Coolers & EGR tubes
• Integrated EGR Modules
• Secondary Air Systems
• Actuators

• Glow Plugs
• Instant Start System
• Pressure Sensor Glow Plugs
• Cabin Heaters
• Tire Pressure
Monitoring System

Thermal Morse TEC
Systems

Drivetrain
Systems

Emissions
Systems
Turbo
Systems

BERU
Systems

3

Customer Diversity Worldwide
2010 Sales Outlook*
Toyota 6%

VW/Audi 16%
Daimler

6%

Ford

4%

BMW

3%

3%
Fiat
Renault/
3%
Nissan
1%
GM
1%
PSA
Commercial
Vehicles 3%
10%
Other

Americas
Asia
Europe

~25%* 29%**
~25%* 15%**
~50%* 56%**

Hyundai/Kia 3%
Honda 2%
Renault/Nissan 1%
China 5%
Other 7%
Ford
GM
Chrysler
Asian OEMs
Aftermarket
Commercial Vehicles
Other

7%
3%
2%
2%
1%
6%
5%
4

*
**

NSK-Warner included
NSK-Warner excluded

Long-Term Opportunities
Actual and Projected Fuel Economy for Light Vehicles

Miles per Gallon Equivalent
(CAFE/Local test cycle)

70

15%-30%
more fuel
economy

E.U. Proposed

60

Gas and Diesel
Turbochargers

50
E.U. Enacted

40

5%-15%
more fuel
economy

China Proposed
Japan Enacted

30
20

China Enacted
5% fuel
economy
possible

U.S. Enacted

10

Cam Phasers -with
CTA™ Technology

0
2002

Dual Clutch
Transmissions

2004

2006

2008

2010

2012

2014

2016

2018

2020

4% more
fuel
economy

Year
Source: International Council on Clean Transportation, November 2009 Update
U.S. Environmental Protection Agency, “Proposed Rulemaking to Establish Light-Duty Vehicle
Greenhouse Gas Emissions Standards and Corporate Average Fuel Economy Standards”

Tire Pressure
Monitoring System

Percentages may vary depending on vehicle application, use and data sourced for comparison

5

Net New Business 2010 thru 2012
$1.8 Billion of Net New Business

Americas*: 20%

Europe: 50%

Asia**: 30%

Chrysler
• Transfer cases
• Engine timing

Ford
•Turbochargers
•Diesel cold start
•DualTronic®

Japanese OEMs
• Engine timing
• Variable cam timing

Ford
• Engine timing
• Variable cam timing
• Turbochargers

BMW
•Turbochargers
•Diesel cold start

Commercial Vehicles
• Emissions
• Turbochargers
• Thermal systems

VW/Audi
•DualTronic®
•Turbochargers
•Beru systems
•Diesel cold start

GM
• Emissions
• Transfer cases
• Turbochargers
• Engine timing

GM
• Transmission components

Daimler
•Turbochargers
•Transmission components

Hyundai/Kia
• Engine timing
• Transmission components
New OEMs
• eGearDriveTM transmissions

Fiat
•Turbochargers
•DualTronic®
•Engine timing
•Diesel cold start

Hyundai/Kia
• Transmission components
• Turbochargers
• Engine timing
Chinese OEMs
• Turbochargers
• Engine timing
• DualTronic®
VW
• Turbochargers

Renault/Nissan
•Turbochargers
•Beru systems
6
* Net new business with GM, Ford and Chrysler in the U.S. is 9% of total net new business
** Net new business in China and Korea is ~18% and ~5% of total net new business, respectively

Net New Business 2010 thru 2012
$1.8 Billion of Net New Business—By Product
DCT
13%

GDI, VTG & R2S
Turbochargers
35%

Transmission
Components
2%
AWD
5%
eGearDriveTM for EV
1%

VCT & Engine Timing
14%
Turbo & Emissions
16%
Drivetrain: ~20%
Engine: ~80%

Ignition Systems
6%
Thermal
8%

7

Global Engine Downsizing
Light Vehicle Engines Produced—by Engine Size
100.0
90.0
2.4

80.0
Millions of Engines

70.0
60.0

2.7
4.7

2.9
2.3
8.8

7.3

8.1

7.7
7.9

5.8

50.0
40.0
30.0

8.0

2.5

8.0

2.8

3.2
10.5

2.5

61.8
51.6

54.0

64.4

66.6

58.1

48.6

48.8

4.0

4.0

4.0

4.3

5.2

6.4

8.0

8.9

9.4

2007

2008

2009

2010E

2011E

2012E

2013E

2014E

2015E

44.0

20.0
10.0
0.0

8 and 10 cylinder engines
6 cylinder engines
4 cylinder engines
2 and 3 cylinder engines
Other

4 cylinder engines account for more than 70% of
total engine growth 2010-2015
8
Source: CSM Worldwide, BorgWarner forecasts (July 2010)

Global Light Vehicle Engine Market
Light Vehicle Engines Produced—by Technology Type
100

2-10%

90

1%
5%

Millions of Engines

80

20%
20%

70
60
50

5%

5%
20%

23%

7%

~20%
HEVs

35%

30%-50%
HEVs

40
~6%
HEVs

30
20

68%

51%

33%

2010E

2015E

2020E

10
0

Alternative Fuel

Gasoline—Port Fuel Injection and Other

Diesel

PEV and PHEV

9

Gasoline—Direct Injection

Source: BorgWarner forecasts, CSM, JD Power, Global Insight, others (July 2010)