BorgWarner Turbo Systems will supply a new range of turbochargers developed for small diesel engines to Renault under a contract worth approximately $125 million.

Renault has begun producing new 1.5-litre diesel engines for 2001 model-year Clio car and Kangoo van models using the KP35 turbochargers produced at BorgWarner’s plant in Kirchheimbolanden, Germany.

“The use of the smaller engines by Renault and other manufacturers reflects a trend in Europe towards greater fuel efficiency and lower emissions,” said BorgWarner Turbo Systems president Lee Wilson.

European demand for diesel engines has accelerated significantly as engine performance and refinement have improved with the development of direct injection, common rail fuel systems and compact turbochargers.

Diesel models accounted for 32 percent of cars sold in Europe last year and penetration is expected to reach 40 percent by 2003.

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