BorgWarner Inc. announced today that it plans to relocate its corporate headquarters from Chicago to Auburn Hills, Michigan.

“As a top-25 global supplier focused exclusively on the automotive business, BorgWarner is a natural fit for metro Detroit — a key location in the global automotive industry, home to several of our customer organizations, and the headquarters of three of our global business units,” said Tim Manganello, BorgWarner Chairman and Chief Executive Officer. “We expect there will be significant benefits to a Detroit-based location, including closer connections with our global customers and suppliers, opportunities for increased collaboration with the 450 employees at the BorgWarner Powertrain Technical Centre in Auburn Hills, and enhanced industry visibility.”

The move is expected to be completed by mid-2005. The headquarters will be located in a new, 60,000 square-foot building at 3850 Hamlin Road in Auburn Hills at the southwest corner of Hamlin and Adams Roads. BorgWarner will lease 40,000 square feet of space in the building, which will be owned by Etkin Equities. Construction is expected to begin in early 2004.

“BorgWarner is grateful to the Michigan Economic Development Corporation and the people of Auburn Hills and Oakland County for their positive attitude and spirit of cooperation in bringing BorgWarner to the state of Michigan,” Manganello said.

The new headquarters will house Manganello and other corporate officers, as well as approximately 60 corporate employees.

“BorgWarner has been a longtime partner with Michigan, creating good- paying jobs for our workers,” said Michigan Governor Jennifer M. Granholm. “We appreciate the company’s continued commitment to Michigan. BorgWarner’s decision to bring its headquarters here is a testament to a top-notch workforce and excellent business climate.”