1. 1 Automotive News World Congress January 17, 2006 “It’s not all that bad.” A look at the flip side of the coin

2. 2 Company Overview Focused on Powertrain Systems Drivetrain Engine 2005E Sales Employees Operations Growth Drivers 1987 LBO ~$4.3 Billion 17,500 61 Locations 17 Countries Fuel Economy Performance Air Quality Vehicle Stability Restructured/Refinanced and went public again in 1993

3. 3 BorgWarner 13.1% North American Production 1.3% Global Production 3.3% Sustainable Long Term Growth BorgWarner Sales CAGR vs. Auto Industry Production CAGR

4. 4 Technology Focus *Technologies rated individually relative to benefits **Relative to passive AWD *

5. 5 Customer and Geographic Diversity * Includes Beru and NSK Warner Hyundai/Kia 6% Renault/Nissan 7% VW/Audi 12% GM 8% DCX 12% Toyota 7% BMW 2% Honda 3% PSA 2% Caterpillar 2% International 2% ZF 1% John Deere 1% All Others 21% Ford 14% 2006 Projected Revenue by Customer* 2006 Projected Revenue by Region* Detroit Big 3 approximately 22% of total 2006 projected revenue

6. 6 Europe: 55% VW/Audi TurbochargersTurbochargers DualTronic TMDualTronic TM Transfer casesTransfer cases GM, Ford, PSA, Renault/Nissan TurbochargersTurbochargers SynchronizersSynchronizersBMW TurbochargersTurbochargers European OEMs DualTronic TMDualTronic TM Asia: 15% Hyundai Transfer casesTransfer cases TurbochargersTurbochargers Transmission componentsTransmission components Chinese OEMs TurbochargersTurbochargers Engine timingEngine timing Transfer casesTransfer cases Japanese OEMs Engine timingEngine timing TurbochargersTurbochargers Americas: 30% International TurbochargersTurbochargersGM Transfer casesTransfer cases Variable cam timingVariable cam timing Transmission componentsTransmission components DaimlerChrysler Transmission modules and componentsTransmission modules and components AWD systemsAWD systems Engine timingEngine timing John Deere TurbochargersTurbochargersToyota Engine componentsEngine components Transmission componentsTransmission components $1.6 Billion of New Business Expected value based on Fall 2005 forecasts; includes Beru Demonstrable Future Growth New Business 2006 thru 2008

7. 7 Operating Margins *Excludes charge related to the anticipated cost of settling all Crystal Springs-related alleged environmental contamination personal injury and property damage claims, income associated with divestitures and the immediate write-off of the excess purchase price associated with Beru’s in-process R&D. Including these items, operating margin in the first nine months of 2005 was 7.2% Maintaining Profitability Predictability of Earnings

8. 8 Return on Invested Capital* * Rolling four quarters Generating Investment Returns “Financial Discipline”

9. 9 Financial Strength Investment Grade Balance Sheet Pre- and Post- Q1 2005 Beru Acquisition $ in Millions

10. 10 Auto Sector Returns Good Place to Invest? Total returns assuming dividends are re-invested during the period shown

11. 11 BorgWarner Difference Superior, Sustainable Sales Growth Through Technology Leadership Customer and Geographic Diversity Maintaining Profitability/ Predictability of Earnings Generating Investment Returns/ Financial Discipline

12. 12 Forward-Looking Statements Statements contained in this presentation 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, many of which are difficult to predict and generally beyond the control of the Company, 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 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, 2004. The Company does not undertake any obligation to update any forward- looking statement.