Magazine for Friends and Customers of BorgWarner Turbo Systems 3/01

Key to SuccessSimon Malins, Key Account Manager for Volvo, talks about Volvo Powertrain and the challenges of the future.

Turb

oN

ews

TeamworkPSA Peugeot Citroën and Ford present a new1.4-liter common-rail diesel engine.

InterviewWith Ulli Fröhn, Vice President of ProductDevelopment & Marketing.

Joint VentureHitachi and BorgWarner Turbo Systemslaunch a joint venture in Asia.

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08071_TurboNews_V3 • E 17.01.2002 16:22 Uhr Seite 17

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Occupying the pole positionwith S400 turbochargers.

Fresh from the IAA: the new Ford Fiestawith 1.4-liter common-rail diesel engine.

Driven by knowledge: thewebsite of BW TS is evolvinginto an information portal.

LEE WILSON ON BORGWARNER TURBO SYSTEMS AND THE GOALS ACHIEVED IN 2001

Success ThroughCommitment

Dear Reader,

It's hard to find the right words to describe the past year. 2001

was overshadowed by the terrorist strikes of September 11 - and

their repercussions on the global economy cannot yet be fully

assessed. Despite this, we are facing the future with optimism

and confidence.

For BorgWarner Turbo Systems, the year 2001 was also marked

by change. In a positive sense, because alongside large projects

such as the construction of the new development center in

Asheville, many smaller improvements are helping to consolidate

the global leadership of BorgWarner Turbo Systems.

In this issue of the TurboNews, we once again report on numerous

large and small innovations. For the first time, you'll also find not

one but two interviews. The first is with Ulli Fröhn, Vice President

for Product Development and Marketing, who we asked about

R&D and the latest product developments in the passenger car

and commercial vehicle sectors. We also talked with Simon

Malins, key account manager, who left no question unanswered

about Volvo Powertrain.

Where customers are concerned, in this issue we present the

new 1.4-liter common-rail diesel engine from Ford and PSA

Peugeot Citroën, and take a close look at the close collaboration

between DaimlerChrysler and BorgWarner, which has recently

come up with a new compressor wheel made of titanium.

We wish you a good start into the year 2002!

If you have any suggestions for improvements or any ideas at all

for the TurboNews, please don't hesitate to contact us. We'll be

looking forward to hearing from you!

Your TurboNews Editorial Team

Editorial

3

TURBONEWS LOOKS BACK ON A YEAR FULL OF CHANGES

Turbolent S. 4

S. 9Indestructible: acompressor wheelmade of titanium.

As we begin 2002, I would like toreflect on several 2001 accom-plishments that will position our

company to better support our cus-tomers globally.

To enhance our position in East Asia, weinitiated a joint venture with Hitachi Auto-motive to design and produce tur-bochargers in that region. The joint ven-ture, named Hitachi Warner Turbo Sys-tems, is located in Hitachi-naka city, andincludes a modern manufacturing facil-ity as well as a strong engineering andcustomer support staff. HWTS hasalready contributed significantly to ourglobal business, having been selected toprovide K-series variable geometry tur-bochargers for 3 new high-volume dieselengine platforms to be produced inJapan and Thailand.

2001 also marks the completion of ournew technical center in Asheville, NorthCarolina, and the move of our NorthAmerican engineering staff to that facilityfrom Indianapolis. Ground was brokenfor the new building in the first quarter of2001, and the team completed the pro-ject on schedule and budget, and in avery compressed timeframe. We fullyexpect the co-location of engineeringand production to quickly result inimproved product quality, as well as anincreased pace of product and processinnovation for our North American cus-tomers.

To support our dramatic growth inEurope, we also began production ship-ments from our new assembly plant inOroszlany, Hungary. This facility wasconstructed on a greenfield site, and wasable to achieve full customer certificationonly nine months from breaking ground.The team, led by Production ManagerKornel Schmidt, has created a world-

Commentar y

Commentary

3 Lee Wilson on Turbo Systems and

the goals achieved in 2001

Markets & Customers

4 New 1.4-liter common-rail diesel engine

from PSA Peugeot Citroën and Ford

8 Titanium compressor wheels

increase the life of commercial

vehicle turbochargers

9 DaimlerChrysler introduces milled

titanium compressor wheel

14 BorgWarner out in front in

Brazilian truck racing

15 Interview with Simon Malins, the new

key account manager for Volvo Powertrain

Inside BW TS

6 Interview with Ulli Fröhn on

worldwide R&D activities

10 BorgWarner Turbo Systems and

Hitachi launch a joint venture in Asia

11 Employees in Campinas launch an

initiative to improve the quality of life

12 Kirchheimbolanden moves plant

logistics to a separate center

13 Continual improvement and

employee education at Bradford

16 New, improved Turbo Systems

website now online

Reviewing the year 2001, BW TS President Lee Wilson is satisfied with the goals achieved.

class facility that will form a base for ourcontinued growth in Europe.

Turbo Systems has also made significantprogress with new and exisiting customersin each of our major regions. We havebeen selected to provide VTG turbos inhigh volume to one of Europe's premierautomotive diesel manufacturers; we havesecured our entrance in the growing NorthAmerican light truck diesel market; andwe have been chosen as the primary sup-plier for one of the largest engine manu-facturers in Brazil. Clearly our customersare recognizing the hard work and dedi-cation of our employees around the globe.Last, I want to note the retirement of oneof our most valued colleagues, KarlWalther. Although Karl is retiring fromBorgWarner, he is known throughout ourindustry, having been actively involved withturbochargers since 1959. Karl is respon-sible for many aspects of modern turbodesign, and led the establishment of ourconsolidated German campus during histenure as Managing Director. Karl's con-tribution will be missed by all of us, andwe wish him well in his much-deservedretirement.

Conten t s

Market s & Cus tomers

5

Rudolf Diesel would surely havebeen proud of the engines beingnamed after him today, which

combine fuel efficiency with outstandingperformance. In the majority of cases,they owe these attributes to modernturbocharging systems.

Credit for the most recent advances goesto PSA Peugeot Citroën and Ford, whichhave been cooperating for a quite a whileto develop diesel engines. At this year'sIAA in Frankfurt they presented the ini-tial fruits of their joint efforts, the new DV4- a 1.4-liter common rail dieselengine.

The two motor vehicle makers hadset themselves very demanding goals interms of downsizing, consumption, emis-sions and performance. It was clear thatthese could only be achieved with anextremely powerful turbocharging sys-tem. Their decision therefore fell on a

T for Two

NEW 1.4-L COMMON RAIL DIESEL ENGINEFROM PSA PEUGEOT CITROËN AND FORD

KP35 turbocharger with wastegatefrom BorgWarner Turbo Systems.The developers were primarily con-vinced by the excellent thermody-namics, low weight and compactdimensions of the KP series, whichis already being used in Renault's new1.5-liter common rail engine.

While developing this new engine, atten-tion focussed on enhancing proven HDItechnology.

This ultimately gaverise to an engine that combines small sizeand low weight with unprecedented per-formance in this displacement class. Evenwithout charge-air-cooler, it boasts per-formance of 43 kW/60 HP and a torqueof 150 Nm at only 1750 rpm, making itsuperbly suited for use in small vehicles.It naturally complies with the EURO3exhaust gas standard, and will also easily

clear the hurdle of the planned EURO4standard. It sets new records in fuel econ-omy, with consumptionranging

between 3.4 and 4.1 litersper 100 km in the MVEG driving cycle,depending on the vehicle type.

The close cooperation that has beenongoing for years among Peugeot/ Cit-roën, Ford and BorgWarner Turbo Sys-tems made it possible to complete thedevelopment project in just 32 months.

The new four-cylinder engine, which willbe used in a large number of vehicle mod-

4

The new 1.4-liter common-rail diesel engines

are setting new standards with significantly

more performance despite their smaller size,

better fuel economy, lower weight, and

reduced pollutant emissions.

These muscular new engines really get com-

pact car models built by Peugot/Citroen and

Ford up to speed.

KKPP3355DV4 from Peugeot/Ford and the K9Kfrom Renault. Both engines share aturbocharging system with KP35turbocharger from BorgWarner TurboSystems. Altogether, an impressivedemonstration of the high level of com-petence that BorgWarner Turbo Systemshas attained in connection with modern,high-performance diesel engines.

els from both makers, will be called the"HDI 1,4 l" at Peugeot Citroën and the"Duratorq TDCI 1,4 l" at Ford. At the IAA,the engine was showcased in a Peugeot206 and a Ford Fiesta. According to thecarmakers, up to 20 additional versionswill follow in the months ahead.

2001saw the appearance of small, mod-ern common rail diesel engines like the

I n s ide BW TS

7

TurboNews asked Ulli Fröhn abouthis main responsibilities as thevice president in charge of prod-

uct development & marketing, the con-solidation of R&D at BW TS, and the lat-est products to emerge for passengercar and commercial vehicle applications.

TN: As the Vice President of ProductDevelopment & Marketing, you're respon-sible for quite a lot. What are your mainduties at BW TS?

Ulli Fröhn: As the person in charge ofdevelopment, my main job is to make surethat we keep generating innovative prod-uct ideas and coming up with new andimproved products that are geared to themarket and our customers' needs. Wehave to identify future customer require-ments in advance and reduce them tocore requirements. And then we have totranslate these insights into appropriatenew product technologies that are in linewith our strategic planning. We naturallyalso need an efficient organization toachieve this. And that, in a nutshell, iswhat product development involves.

Since the merger of Schwitzer and 3Kin 1999, we've also been faced with themajor task of welding together the engi-

neering organizations of two companiesthat used to compete with each anoth-er to forge a single global developmentdivision. This has involved streamliningproduct portfolios, centralizing basicdevelopment activities, and decentraliz-ing customer- and market-specific devel-opment work. It's also been essential forus to standardize processes and meth-ods, prioritize our worldwide engineeringresources and development capacities,and reorganize management for maxi-mum effectiveness. And, of course, we'vehad to keep a close eye on costs.

TN: How far along is the worldwide R&Dconsolidation program two years after themerger?

Ulli Fröhn: Organizationally, we'vemeanwhile grown together into a singleunit. We have divided up global and con-tinental responsibilities for product devel-opment, assigning them to the passen-ger car and commercial vehicle divisions.They are supplemented by one centralunit for testing and another for advancedproduct development. Right now, we'reconducting several highly successfuldevelopment projects with globallyrecruited teams. We're also encouragingdevelopment engineers from Asheville tospend time working in Kirchheimbolan-den and vice versa to help them gain abetter understanding of each other's cul-tures, among other things. I learned howimportant this is during the two years Iworked in Indianapolis

The consolidation process with the intro-duction of standardized procedures andspecifications within Turbo Systems is stillrunning full tilt. So far we've finished morethan half of the work. For instance, we'vealready standardized the CAD systems,the nomenclature for turbocharger spec-ifications, the parts numbering system,and various testing and release proce-dures, to mention just a few things. Inaddition, we've adopted the metric sys-tem worldwide. It's where product con-solidation is concerned that we still havethe furthest left to go. For example,

although we have concrete plans fordesigning a BW Turbo Systems tur-bocharger series for commercial vehicleapplications, its implementation dependsgreatly on our customers. We need a fine-ly differentiated strategy for this, whichhas to be agreed on with each affectedcustomer.

TN: What are the principal R&D chal-lenges facing BW TS for actual productdevelopment and in terms of organiza-tion and processes - especially in view ofthe increasing requirements that tech-nology and services must meet thesedays?

Ulli Fröhn: BorgWarner's declared goalis product leadership. But when are youa product leader? I don't think you haveto be the largest turbocharger maker, justthe one that's "most in demand" - that'swhen you've attained your goal. The firstprerequisite is thorough familiarity withyour customers' needs. It's becomingvery apparent that, in the future, systemcompetence is going to be required of usthat goes far beyond our traditional "tur-bocharger competence". In other words,developing products will increasingly giveway to developing whole systems. We'retackling this challenge, but we can't mas-ter it without more alliances, despite ourconsiderable resources and capabilities.The recently launched joint venture withHitachi in Japan is a step in the right direc-tion, but we're going to need additionalstrategic partnerships.

So that we can optimally leverage ourworldwide resources and know-how, weneed simple, manageable and under-standable processes, plus an organiza-tion that is characterized by short, fastdecision-making paths. This will give usa competitive edge.

TN: A new development facility is cur-rently being built at the Asheville site inNorth America. How far along is the con-struction work, and what goals is BW TSpursuing with this step?

Ulli Fröhn: As you know, the Indianapolissite is going to be closed down at the endof the year and all of its present functionswill be moved to Asheville, including thedevelopment department with its engineand combustion chamber test rigs. A newdevelopment center is being set up inAsheville to accommodate the personneland testing systems. The test rigs startedoperating in November 2001. They are pri-marily being used to develop market- andcustomer-specific turbochargers and sys-tems for engine makers. The rigs are alsoavailable for special development work inglobal development projects.

TN: What can you tell us about the latestproduct developments at BW TS in thepassenger car arena?

Ulli Fröhn: In the passenger car sector,you have to distinguish between devel-opment activities for diesel and spark-ignition engines. Where diesel is con-cerned, we're working hard to enhanceVTG technology by improving thermo-dynamics, regulation, costs and control.BorgWarner is already able to offer cus-tomers various newly developed elec-tric actuator versions. To fully tap thepotential of variable turbines, we alsoneed to come up with innovative ways toimprove compressor performance. Sowe're working on new compressor gen-erations and solutions for variable com-pressors. Then we have the R2S™, whichis an extremely high-performance two-stage, regulated turbocharging systemthat BW TS has already introduced forcommercial vehicles. Studies conductedwith passenger car makers have shownclearly that it offers significant benefitsin terms of consumption and perform-ance.

The challenges in connection with futurespark-ignition engines mainly involve find-ing solutions for higher exhaust gas tem-peratures and downsizing concepts. Herewe're currently focussing on upgradingour proven K and KP series for temper-atures as high as 1050°C. Closely asso-ciated with this, we're working to devel-op thin-wall cast steel and sheet-metalturbine housings. We're also devoting alot of attention to variable turbines(VTG/VST) for spark-ignition engines; infact, we've already released an initial VSTsolution. For implementing downsizingconcepts, we are working to develop anelectrically driven flow compressordubbed eBoosters™, which we exhibit-ed at Engine Symposium 2001 in Vienna.

TN: What's new in the commercial vehi-cle sector?

Ulli Fröhn: We're also going all out todevelop and improve products for com-mercial vehicles - we want to remain theleading supplier in this field. One of ourmain focuses here is on exploiting the fullpotential of VTG. We're also collaborat-ing with major clients on applications forour two-stage, regulated R2S™ turbo-charger. Because of the need for greaterboost pressures and the growing num-ber of applications involving extremeloads, we've been motivated to launcha comprehensive development programto prolong the service life of compres-sor wheels. I'm happy to say that we'realready in a position to provide customerswith the right compressor wheel solutionsfor their particular applications. They cantake their pick from cast and milled ver-sions made of aluminum or titanium -BorgWarner Turbo Systems offers theright compressor wheel technology forevery case.

From Product Development to System Development

INTERVIEW WITH ULLI FRÖHN, VICE PRESIDENT OFPRODUCT DEVELOPMENT & MARKETING

6

Ulli Fröhn is optimistic about

the future - major progress is

being made in consolidating R&D activities

worldwide.

So in rough terms, that's the current sta-tus of our development efforts. We'll bepresenting many of the products I'vementioned in greater detail before long,and mass production of some of themwill also begin soon.

TN: Mr. Fröhn, thank you very much forthis interview.

R2S™, probably thebest-performingturbocharging sys-tem now available,is gaining in impor-tance for use in pas-senger car and com-mercial vehicleengines.

Where passengercar applications areconcerned, the focusis on enhancing VTG.

Tough and Rugged

TITANIUM COMPRESSOR WHEELS PROLONG THE SERVICELIFE OF TURBOCHARGERS FOR COMMERCIAL VEHICLES

Modern turbochargers for com-mercial vehicles are often sub-jected to very high stresses. In

many cases involving extreme stresses,turbochargers wear out faster when theircompressor wheels are made of alumi-num alloy. Especially when low-frequen-cy cyclic stresses are involved, materialfatigue occurs - known appropriately as"low-cycle fatigue" (LCF).

Different things can be done to increasethe service life of turbochargers. One isto reduce the tip speed of the compres-sor wheel by changing its aerodynamicdesign or by controlling or reducing theboost pressure. In many cases, the useof higher-strength aluminum, such as thatmade using the HIP process, also yieldsbetter results. And until recently, the state-of-the-art solution for aluminum wasmilled compressor wheels, which weredeveloped by BorgWarner Turbo Systems.

But engine applications with high cyclicloads and the need for higher boostpressures to comply with stricter emis-sion rules have made it indispensable todevise an innovative solution that goesa step further than milled aluminum com-pressor wheels.

So it could offer customers a technolo-gy that withstands high stresses whileensuring the same service life as underregular conditions, BorgWarner TurboSystems initiated a special developmentprogram.

The conclusion was reached that com-pressor wheels would have to be madeof a stronger material than aluminum tomeet the new requirements. After con-ducting extensive studies, the develop-ers settled on a titanium alloy that exhibits

not only high strength but also an excell-ent strength/density ratio. Running testshave shown that the service life of tita-nium compressor wheels is over 13 timeslonger than that of conventional castwheels.

First, however, it was necessary to exam-ine the other ways in which titanium'sproperties differ from aluminum's and

solve the associated problems. Attentionfocused on suitability tests for burstingresistance, containment, shaft motion,and durability under blade resonanceconditions.

This intensive development programinvolved close cooperation with cus-tomers. Following successful completionof the work, large-volume production hasnow begun.

The new titanium compressor wheelspermit BorgWarner Turbo Systems tooffer a variety of compressor wheel tech-nologies for different applications andcyclic stresses. Depending on the envis-aged use, customers can now choosebetween aluminum or titanium com-pressor wheels, both of which are avail-able in cast and milled versions.

Market s & Cus tomers

8 9

Marble, Stone andIron All Break

DAIMLERCHRYSLER INTRODUCES NEWMILLED COMPRESSOR WHEELS

DaimlerChrysler and BorgWarnerTurbo Systems have been workingtogether for many years to devel-

op engines for commercial vehicles. Theircollaboration has generated a large num-ber of new products and applications tomeet growing requirements in this sector.

Two of the goals pursued have been toreduce engine maintenance requirementsand comply with stricter rules on exhaustemissions. Another, important one hasbeen to meet customers' wishes for moredynamic performance and torque, as wellas more power with greater fuel econo-my. This has naturally challenged the skilland creativity of the development engi-neers. But it has also placed growingdemands on the technology and mate-rials used.

BorgWarner Turbo Systems, being theleading maker of turbochargers for com-mercial vehicles, is well aware of the strin-gent requirements that turbochargersmust meet. It is therefore continually striv-ing to improve the surge and choke linesand map width of compressors. Work isalso always ongoing to enhance the effi-ciencies of compressor and turbinewheels while prolonging their service lives.

One decisive advance is the introduc-tion of milled compressor wheels, whichincrease the life of K16, K27.2, K27 andK31 under extreme conditions. Depend-ing on the application and the stressesit involves, the wheels are made ofwrought aluminum alloy or titanium.

DaimlerChrysler uses these turbocharg-ers in three engines: the OM904LA for theAtego and the Cito, the OM906hLA forthe Citaro, and the OM501LA for theActros. Cast compressor wheels alsocontinue to be used in less-demandingapplications.

Turbochargers with milled compressorwheels are also finding their way into Mex-ican and Brazilian busses equipped withDaimlerChrysler engines.

Marble, stone and iron all break - butnot the new milled compressor wheelsfrom BorgWarner Turbo Systems. Onething that this convincingly demonstratesis the importance of joint developmentefforts for everyone concerned - both forcommercial vehicle makers and forBorgWarner.

BorgWarner Turbo Systems is firmly com-mitted to seeking close collaboration withits customers and intensifying its jointdevelopment activities. The resultingprogress in turbocharging technologypaves the way for advances in enginedesign to benefit customers.

An Atego 6-cylinder diesel engine with milledcompressor wheel.

BorgWarner turbochargerssupport the legendary long lifeand ruggedness of Daimler-Chrysler's commercial vehicles.

Titanium makes for amuch longer service lifeand greater flexibility.

I n s ide BW TS

10

1+1= 3

HITACHI AND BORGWARNER TSPROFIT FROM A JOINT VENTURE BorgWarner Turbo Systems and

Hitachi Automotive Productshave launched a joint venture

called Hitachi Warner Turbo Systems,effective as of October 1, 2001. Each part-ner owns 50 percent of the new firm. Thispowerful alliance will strengthen the posi-tion of both companies in the Asian mar-ket for turbochargers.

The new enterprise is headquartered inHitachinaka-shi, 120 km (72 miles) northof Tokyo in Ibaraki Prefecture. The region-al economic and cultural center is Mito,known for its Kairakuen Gardens, one ofthe famous "three celebrated gardensof Japan".

The administration building of Hitachi Warner Turbo Systems in Hitachinaka-shi.

Mr. Kosuge, CEO of Hitachi Warner, and Mr. Seehars, Director of Sales for Asia, at the traditional inauguration ceremony Kudama.

FFASTASTFFACTSACTS

11

• The joint venture "Hitachi Warner Turbo Systems" was established by Hitachi Automotive Products and BorgWarner Turbo Systems on October 1, 2001.

• The Turbocharger Division of Hitachi Automotive Products has existed since 1977.

• About 50 employees work in the joint venture, with Hitachi Automotive Products providing additional support.

• Floorspace: approx. 2,400 sq m(26,000 square feet)

• Output in 2000: about 120,000 turbochargers

South Americans have not onlyrhythm, but also drive and initia-tive in their blood. This was

demonstrated by a group of employeesat the BorgWarner Turbo Systems site inCampinas, Brazil, who launched a cam-paign to improve the quality of life ofcoworkers and people living in the region.

For instance, they organized a largespring festival on September 22 and invit-ed all of the site's employees and theirfamilies. Quite a bit was offered: the chil-dren had the opportunity to get to knowtheir parents' colleagues and workplaces,and had fun as well. They naturally alsolearned what a turbocharger is and howit works. The adults were invited to takepart in a singing contest featuring attrac-tive prices.

The same employees who organized thespring event had previously launched avery successful initiative for recyclingpaper and plastic cups in connection withthe preparations for complying with the

BW TS EMPLOYEES PROMOTE GREATER QUALITY OF LIFE IN CAMPINAS

ISO 14000 standard at the plant. The newsystem now permits about 1.5 metric tonsof paper to be reused each month. Twoecologists were also invited to hold pre-sentations on environmental protectionand recycling at the spring festival. After-wards employees and their children plant-ed trees of species native to the area forfuture generations to enjoy.

The exemplary involvement of these staffmembers not only benefits the Campinasarea. It also fills the employees of Borg-Warner Turbo Systems with pride at work-ing for a company that takes care of itsown and the environment. This is the feel-ing that everyone attending the festivaltook home with them that evening.

At a large spring party in Campinas, BW TS employeesand their families showed that working to improve thequality of life and protect the environment can be a lotof fun and bring people together.

As is the case in any good partnership,both companies will benefit from thepowerful synergies the joint venture isexpected to generate. Hitachi gainsaccess to the newest, most successfulproduct technologies from BorgWarnerTurbo Systems and the know-how of itsglobal production network. BW TS alsostands to win a great deal: a gatewayto the Asian turbocharger market and alocal production facility. Japanese cor-porate structures and ways of workingalso promise to beneficially stimulate theperformance of other sites of the Borg-Warner Turbo Systems network.

Turbochargers of the HT series - rangingfrom the HT06 for minicars to theHT25 for trucks - will be produced inHitachinaka-shi for major customersincluding Suzuki, Mazda, Nissan Diesel,and Isuzu. However, the main focus isstill on small turbochargers for spark-igni-tion engines for passenger cars, andespecially for minicars.

The production activities will includemachining of nearly all components plusassembly and testing of turbochargers.The joint venture also has its own devel-opment department and advises localcustomers on all aspects of turbocharg-ing. Application groups have been set upto reflect the customer mix; they will becollaborating closely with the speciallycreated Sales and Application Group Asiain Kirchheimbolanden. This will enablefast know-how transfer, especially in con-nection with VTG technology. In addition,a resident engineer from Kirchheim-bolanden will support the applicationgroups on-site at Hitachi Warner andassist customers there.

The new joint venture is more than thesum of its parts. It combines the out-standing strengths of Hitachi and Borg-Warner Turbo Systems under one roof,offering customers market-leading prod-uct technology in conjunction with com-petent local consulting.

ExemplaryInvolvement

Advanced Logistics

PLANT LOGISTICS IN KIRCHHEIMBOLANDENMOVED TO ITS OWN CENTER

I t's naturally a good thing when salesincrease. That is, as long as you makesure that your production capacities

keep pace with demand.

To make room for more production in theKirchheimbolanden plant, in the late 1990sBorgWarner Turbo Systems started think-ing about moving logistics and storageelsewhere. After working out what wasneeded, the company then rented about1,000 square meters of space in a ware-house - formerly a production and stor-age facility for sausage and baked prod-ucts - in the Kirchheimbolanden indus-trial park to begin putting the plan intoeffect. It was initially used to store reusablepackages received back from customers.

But sales volumes continued to grow, andsoon even more space was needed forproduction. This made it essential to moveadditional logistics operations out of theplant. In 2000 and 2001the external stor-age facility was expanded to 9,000 squaremeters in eight steps, with the installationof shelves holding 4,000 large bins and1,000 small ones. About twenty percentof the space is used for consignmentstock from suppliers.

Today the resulting logistics centeremploys 35 workers in three shifts, sup-plying the plant with about 80 percentof the required materials. Two trucks shut-

tle back and forth between the produc-tion plant and the logistics center oncean hour, around the clock. This shuttleservice has the positive side effect ofimproving security on the plant premis-es, since the number of trucks enteringto deliver goods from suppliers has beenconsiderably reduced.

The logistics center takes care of receiv-ing incoming goods, storage, stock pick-ing and supply for the Kirchheimbolan-den plant. A materials management sys-tem groups items depending on how fre-quently they are needed, placing them atappropriate locations to ensure fast, opti-mized material flows. Kanban - a methodfor optimizing business processes devel-oped in Japan - is used to help efficient-ly organize the operation. In addition, thelogistics center handles nearly all outgo-ing shipments to passenger car makers.

further improvements. Mick Gray, whoheads a department that makes com-pressor wheels, stressed that all of hisworkers had benefited from the work-shops. Christine Cliff, in charge of theplant's human resources department,was enthusiastic about the workshops:"We want all our employees to get evenmore opportunities like these. So we'reencouraging them to sign up for pro-duction courses which are being held incooperation with the local technical train-ing association and are recognized by the

British National Vocation Qualifications(NVQ) system. Employees who attendthese courses have to devote a certainamount of time to learning. But it's worthit - for Bradford, and for each individualworker."

12 13

CONTINUOUS IMPROVEMENT AT THE BRADFORD SITE

The present and future competi-tiveness of manufacturing sitesdepends crucially on efforts to

continually improve work and productionprocesses at them. To meet this require-ment, the Bradford site engages in non-stop process optimization and, especially,personnel development. For instance, in2001 one of the world's top productionand process specialists was brought into share his know-how with all produc-tion employees in a series of two-dayworkshops.

"Our goal is to provide our employees withknowledge they can use to make theirown decisions on how to effectively makeimprovements," commented operationsdirector Paul Morgan. "We're taking aproven, thoroughly structured approach

to solving problems so they will have allthe decision-making tools they need attheir fingertips."

The workshops covered various topics:the design of production cells, how to cutdown on tooling times, process reduc-tion analysis, and cleanliness. On the first

day of each training event, the partici-pants analyzed actual production prob-lems. They then spent the second dayimplementing appropriate solutions.

Production Manager Gus McQuillan wasvery satisfied: "The results were very pos-itive," he stressed. "Since introducing theprogram we have regrouped 40 percentof the machines and significantly reducedthe quantities of unfinished product with-in the plant. Average tooling times havedropped throughout the factory, and in

one production area we accommodat-ed new machine cell layouts in 80 per-cent as much space as before, freeing uproom for other things."

In some production departments themachines were regrouped for the secondtime to fine-tune production and achieve

A Model ofSuccess

A successful initiative for continuingemployee education at the Bradford plantinvolved a series of workshops that intro-duced numerous improvements to workand production processes.

The logistics center in Kirchheimbolanden. About 80% of thematerials used in production at the plant come from here.

I n s ide BW TS

Market s & Cus tomers

14 15

Battle of the Giants

BORGWARNER OUT IN FRONT INTRUCK RACING IN BRAZIL

Blistering heat, earth-shakingpower, dramatic passing maneu-vers: truck racing in Brazil is about

as exciting as it gets. It's also extremelydemanding on the participants - driversand pit crews alike - and, of course, onthe vehicles. To succeed there, a prac-ticed team and strong partners are anabsolute must.

The Brazilian truck racing championshipshave been consistently dominated bytractors equipped with BorgWarner tur-bochargers. Specifically, it's turbocharg-ers of the S400 series that get the bestteams up to speed, enabling them topractically subscribe to the title. RenatoMartins kicked off the series of victoriesfor the S400 turbocharger in 1996 by bag-ging first place in the first Brazilian cham-pionship with his Scania. He was followedin 1997 and 1998 by Osvaldo DrugovichJr., also driving a Scania, and in 1999 and2000 by Jorge Fleck piloting a Volvo.

The mighty engines of these racing behe-moths are subjected to incredibly great,nonstop stresses. So the S400 series tur-bochargers are prepared for the strenu-ous racetrack battles in special test labsat the Campinas facility. The enginesunder the trucks' hoods deliver up to 1,100

INTERVIEW WITH SIMON MALINS, NEW KEYACCOUNT MANAGER FOR VOLVO POWERTRAIN

Malins: A key account manager is main-ly concerned with coordinating all glob-al activities - in this case, between Borg-Warner Turbo Systems and Volvo Pow-ertrain. Our customer base is steadilyshrinking as a result of mergers andacquisitions. This makes it even moreimportant to serve the remaining cus-tomers, most of which are joint ventures,attentively and well. We can only main-tain close contacts with these globalmanufacturers and continue our past suc-cesses by being flexible and having the

capability to operate worldwide ourselves.In particular, I will be responsible for coor-dinating the technical programs we con-duct with Volvo Powertrain. I will also bemaking sure that we exploit and extendworldwide synergies in connection withour products.

TN: In your new job, what do you expectfrom the sales & applications groupsaround the world?

Malins: Our sales & applications groupsin Kirchheimbolanden, Bradford andAsheville are directly involved in our busi-ness relationships with Volvo Powertrainand Deutz. Volvo Powertrain and Deutzhave engine development units in Swe-den, France, Germany and North Amer-ica. Because Volvo is developing a new

engine platform strategy, we also needa cross-country approach for supportingour customers in this. It's vital for us todeliver top quality and meet deadlines.But we also have to promote a corporateculture that is able to respond to changes.This is essential if we are to remain ourcustomers' first choice for turbocharger

systems.

TN: What are the greatest chal-lenges facing you personally?

Malins: I'd have to mentionbringing together many differentcultures to shape a successfulfuture. We have to continue driv-ing this process in the interests ofour customers within the VolvoPowertrain Sales & ApplicationsGroup. Ultimately, BorgWarner'sbiggest strength are its employ-

ees around the world and their knowl-edge. To be successful, we have to lever-age this know-how as effectively as pos-sible.

TN: Mr. Malins, thank you forthis interview.

HP with a maximum of 12 liters of dis-placement, although this is still far fromenough: work is already ongoing to devel-op the next generation of turbocharg-ers for the 2002 season.

The truck racing championship counter-part of Bernie Ecclestone in Formula Oneracing is Aurelio Batista Félix, who cre-ated the event in 1996 and still organiz-es it today. Some 40,000 enthusiasticfans loyally attend the monthly races,which are also broadcast live on televi-sion and reported on in detail by localnewspapers.

With only two races remaining in thisyear's championship, Renato Martinsdriving a VW is the clear favorite to win.His main rival, Cirino at the wheel of abrand-new Mercedes, is hard on his heelswith only four points fewer on his score-card, so spectators can look forward toan edge-of-the-seat, merciless finale.

At BorgWarner, the champagne hasalready been put on ice. No matter whowins - Martins or Cirino - the S400 will bevictorious, since both contenders' vehi-cles are equipped with it.

A whole series of victories: trucks equipped with turbochargers of theS400 series have dominated the truck racing championships in Brazil.

Masterful: the BorgWarner logo markspotential winners.

Simon Malins works at the Brad-ford Sales & Applications Officeand is the new key account man-

ager for Volvo Powertrain. He joinedSchwitzer in 1987 as an account man-ager, and most recently was Sales &Applications Group Manager beforeoccupying his new position. TurboNewsasked him about Volvo Powertrain, hispromotion to key account manager andthe challenges of the future.

TurboNews: Mr. Malins, can you tell ussomething about our customer VolvoPowertrain?

Simon Malins: At the beginningof the year, the responsibleauthorities in Europe and theUnited States approved theacquisition of Renault VI byVolvo. The new Volvo Group nowcomprises Volvo Truck, theRenault VI & Mack Truck Divi-sions, Volvo Bus, Volvo Penta,Volvo Construction Equipment,Volvo Aero, Volvo Finance, andVolvo Powertrain. Volvo Power-train supplies the engines, transmissionsand axles for the other parts of the com-pany.

BorgWarner is the main supplier of tur-bochargers to the companies of the VolvoGroup and to Deutz, in which Volvo ownsa ten percent stake. Deutz will be devel-oping and supplying midrange enginesfor the Volvo Group. Our plants inAsheville, Bradford and Kirchheimbolan-den now supply engine factories of Volvo,Renault VI, Mack and Deutz around theglobe.

TN: What does your new position as keyaccount manager for Volvo entail?

The Keyto Success

For Simon Malins, the crucial factors for success are technology, quality and consistent meeting of deadlines.

Published byBorgWarner Turbo Systems GmbHMarnheimer Straße 85/87, D-67292 Kirchheimbolanden

Editing and CoordinationGünter Krämer, Global Marketing, BorgWarner Turbo Systems

AuthorsMichael Schmieder, Helmut Mathes, Dr. Berthold Engels, Jürgen Graumann, Thorsten Seehars, Sabine Bossert, Paul Morgan

PhotographyBW Turbo Systems, Ford, PSA, DaimlerChrysler, Volvo

Concept, Design and PrepressHaas Werbeagentur GmbH, Mannheimwww.haas-partner.com

PrintingDruckerei Peter Dewitz GmbH, Ketsch

Copyright © 20013K-Warner Turbo Systems GmbH, KirchheimbolandenAll rights reserved, including that to make technicalchanges. Printed in Germany

TurboNews – 3/2001 Issue

I n s ide BW TS

Prettier, Faster,Simpler

BORGWARNER TURBO SYSTEMS' NEW WEBSITE

The Internet is still booming, andhas evolved into an indispensablemedium for companies around

the globe. More and more business andcommunication processes are being con-

ducted electronically. And to permitsmooth handling of everyday businesstransactions, a company's website hasto be user-friendly and fast. It's alsoessential to design it and present con-

tent in an immediately rec-ognizable way while reflect-ing the company's charac-ter. "Corporate Design" is themagic word here. This

involves a set of rules for ensuring thatthe company projects a consistent visu-al image with its logo, corporate colorsand fonts.

BorgWarner Turbo Systems has given itswebsite a thorough facelift. The aim wasto make sure that its appearance con-forms to the same Corporate Design rulesas the company's printed documents.And the results not only make a goodimpression, but are also a pleasure to nav-igate. Besides the purely visual changes,more information is now available andhandling has become easier. Time-con-suming, superfluous animation effectshave been intentionally left out so userscan quickly get their bearings and pin-point the information they need.

The site's extended content means thatvisiting it is more worthwhile than ever.From a complete overview of the K andS series for passenger cars and com-mercial vehicles all the way to an updat-ed company history, there's somethingfor every user. All BW sites are now includ-ed with brief profiles, and a specially cre-ated press section lets you download thelatest press releases. And this is only thefirst step toward creating a comprehen-sive information platform for BorgWarn-er Turbo Systems. Under the motto "driv-en by knowledge", a new website sec-tion is now also being set up so that BWTS presentations can be downloaded.

The address is the same:wwww.turbos.bwauto.com.So what are you waiting for?

No frills: nothing but useful information at the

new website of BW TS.

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About Th i s Pub l i ca t ion

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