BorgWarner to launch latest DCT tech first in China

Shanghai, October 23 (Gasgoo.com) BorgWarner will "quite possibly bring to China its latest Dual Clutch Transmission (DCT) technology that has not launched anywhere else in the world," according to Tim Manganello, BorgWarner Chief Executive, who made the remarks alongside the ground-breaking ceremony of its China Technology Center in Shanghai today.

Tim Manganello(middle) at the CTC ground-breaking ceremony.

"We're still in active discussion ... The DCT technology is preferred by the Chinese government and the Chinese OEMs," He said.

BorgWarner has been working with ten big Chinese OEMs on DCT technology under the organization of the Chinese government, since the middle of the year. BorgWarner is likely to take 64 percent stake in the multi-way joint venture under discussion.

Despite of the slowdown in its European business, which roughly contributes half to its total revenue, BorgWarner has continued its huge investment in China. The 27,000-square-meter CTC center based in Shanghai is BorgWarner's largest R&D center around the globe. The new center will initially focus on providing powertrain technology for the Chinese market and over the time support BorgWarner's global business operation.

The Michigan-based company has been negatively affected by the economic slowdown as 50 percent of its business comes from Europe. And the redundancy schedules are on the process. "But we're still in good financial condition. We still see growth in Asia, especially in China, though not as strong as it used to be," said Tim.

BorgWarner may post a  15 percent decrease in its profit to $70.6 million in the third quarter when it reports earnings Oct. 29, according to the average estimate of five analysts. The FORTUNE 500 company hasn't posted a quarterly loss since the three months ended December 2006.