BorgWarner and General Motors Corp. have opened talks relative to the future of the New Venture Gear manufacturing facility in Muncie, Indiana, its current product line and opportunities for growth in BorgWarner’s four-wheel drive business.

BorgWarner has signed a letter of intent with GM regarding BorgWarner’s use of the NVG facility in Muncie with an eye toward expanding its existing line of torque distribution and management products. The NVG Muncie operation currently employs 1,350 people and manufactures a variety of powertrain products including transmissions, differentials, gears and other automotive components. BorgWarner also operates a facility in Muncie, which employs 1,250 people and produces four-wheel drive systems.

BorgWarner’s global customer base includes GM, which selected the company to supply four-wheel drive transfer case systems for several GM sport-utility and light-truck platforms beginning in 2002. BorgWarner is a leading global designer and producer of torque distribution and management systems.

Earlier, GM and DaimlerChrysler announced plans to restructure New Venture Gear. Under the announced plans, GM would manage the Muncie facility as an independent business.