The acquisition will strengthen BorgWarner’s engine electronic control capabilities and sensor expertise, according to chairman and CEO Timothy M. Manganello.

BorgWarner Inc. supplies components and systems for vehicle powertrain applications. Beru develops diesel cold starting technology (glow plugs and instant starting systems); gasoline ignition technology (spark plugs and ignition coils), and electronic and sensor technology (tire pressure sensors, diesel cabin heaters and selected sensors).

Separately, BorgWarner Inc. said it expects expects $1.4 billion in new powertrain business for 2005 through 2007, much of it from Volkswagen/Audi, General Motors and Hyundai/Kia. Approximately $400 million should come during 2005, with the remainder spread over the other two years, depending upon production volumes, launch timing and currency.

Presenting at Gabelli & Company’s annual Automotive Symposium, BorgWarner’s Manganello said two-thirds of the new business is coming from engine-related products such as turbochargers, engine timing systems, variable cam timing modules and emissions/thermal products, according to the company. The rest is from transmission modules and four-wheel/all-wheel drive systems, including technology for DualTronic transmission systems and InterActive Torque Management systems.

Engine Group customer programs include next-generation passenger car turbochargers in Europe for VW and Audi, Renault, PSA, BMW, Ford and Fiat; emissions and thermal products for the DaimlerChrysler world engine, and chain-driven timing systems for Honda, Nissan, Hyundai and a Chinese OEM, and for the DaimlerChrysler world engine program.

BorgWarner’s Drivetrain Group will supply electronic all-wheel drive for Hyundai, Honda, a major North American OEM and a Chinese automaker, plus four-wheel drive systems for GM and a major European automaker.