Asian markets like China, India and  Korea are the new growth frontiers for  BorgWarner. We have been in China since  1993, India since 1995 and Korea since  the late 1980s. While each country is  unique, they share common needs. Our  customers desire local engineering and  manufacturing as they embrace new tech- nologies for reduced emissions, fuel effi- ciency and driving comfort. Their goal  is to meet European engine emissions  requirements for both local and export  markets and to produce transmissions  that will please the most demanding  customers anywhere in the world.  Local leaders like Freeman Shen, along  with multi-national teams, are changing  the way BorgWarner thinks and works  as it structures for global growth. With  BorgWarner for five years, previously heading the Emissions/Thermal opera- tions in China, Freeman believes that  our technology not only sets us apart, it  allows us to attract good people needed  to drive our growth.  In Korea, we are doing business from  engine and drivetrain campuses. A com- mon BorgWarner manufacturing campus  in China is under construction and our  Shanghai office opened in December  2004. We are starting small and proceed- ing cautiously. Synergies from sharing  services as we enter or build our presence  in emerging markets offer other oppor- tunities for collaboration and cost savings.  As we build our business in these areas,  we are also developing local suppliers that  can serve us around the world. Assuring  quality is a top priority. 13 “ Our technology and reputation  give us exciting  opportunities  in China.” PRO D UCT LEADERS HIP MEANS G L O BAL PRES ENC E Turbocharger  BV50 InterActive Torque  Management 1 VCT Cam Phaser with  Variable Force Solenoid Freeman Shen Country Manager BorgWarner  Shanghai, China 12 Our sales in China, India and Korea are expected to increase about five-fold over the next five years  from a small base today. As they build roads and cars for new drivers, these countries will be the  fastest growing in the auto industry. As a global powertrain product leader, we are well positioned to  take full advantage of this growth and that in other emerging markets.  increasing 5-fold