At this time, I would like to welcome everyone to the BorgWarner 2007 fourth quarter and full year Earnings Call. (Operator Instructions) I would now like to turn the call over to Mary Brevard, Vice President, Investor Relations. Ms. Brevard, you may begin your conference.

Thank you very much, Thea, and thank all of you for joining us today. We are having an out-of-town board meeting today with a very tight schedule of events, which is why we released mid-afternoon and are talking to you now rather than earlier in the morning when we would normally do this. So, this is just a one-time difference, because of our regularly scheduled board meeting. The copies of the release went out to you today around 2o'clock Eastern Standard Time. We've also posted financial talking points on our website that should help you to follow the financial discussion. They are located at borgwarner.com, Investor Information, webcast fourth quarter 2007 conference call talking point. The conference call today will be replayed till February 14, 2008. The dial-in number is 800-642-1687. Our conference call ID is 30058888. And then a replay of the call is also available on our website. We have a number of analyst conferences that we will be having in the next few months: Lehman Brothers Industrial Conference, Monday, February 11th; The City Global Industrial Manufacturing Conference on March 5th; and the Morgan Stanley Global Automotive Conference on March 19th. Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. Moving onto our results, Tim Manganello, Chairman and CEO, will be providing comments on 2007; and Robin Adams, our CFO will be discussing operating results. Tim?

Thank you, Mary, and good day, everyone. Once again, BorgWarner has delivered excellent results both in the fourth quarter and the full year for 2007. Strong sales in Europe and Asia were coupled with the benefits of our restructuring plans in North America. So, now let's take a look at the highlights. The full year highlights include record sales of $5.3 billion, up 16%. Sales outside the US grew 17% over 2006. Excluding the impact of currency compared with vehicle production outside of US, it was up 7%. Sales in our US operations were flat despite lower domestic vehicle production, which was down 3%. We had record earnings of $2.44 per share, excluding special items. The Engine Group sales were up 19% to $3.8 billion, and Drivetrain Group sales were up 9% to $1.6 billion. Our 2007 accomplishments include our $1.95 billion of net new business for the three-year period covering 2008 through 2010, which then implies a growth rate of approximately 11% for the same three-year period. 50% of our new business is expected to be in Europe, 30% in Asia and 20% in North America. We also opened new facilities around the globe. We have a new European Drivetrain technical center in Germany, an expansion of our turbo facility in Hungary, an additional facility to Turbo Systems on our Engine Campus in Korea and a second Arnstadt, Germany facility opened this week to handle additional DCT growth. We also have facilities under construction for 2008. And they include: Thermal Systems, which has broken ground for a new facility near Chennai, India, and they will open another new facility in Ningbo, China, this Spring; a new turbocharger plant in Poland that will have capacity to make 500,000 turbochargers per year; a Drivetrain manufacturing campus in Mexico that will produce…

Thank you, Tim, and good afternoon, everyone. Before I get into the details of the financials, let's go over the industry environment a little bit. In the fourth quarter, as Tim said, we saw improved vehicle production growth in every region of the world with the exception of North America. Vehicle production outside of the US was up 7%, with Europe up 6% and Asia up 8%. In the US, however, vehicle production slowed with the overall economy and was flat against the weak comparable in the fourth quarter 2006. For the full year, the results were pretty similar, strong growth in Europe and Asia, up 6% and 7% respectively, and weakness in North America where production was down 1.5%. Now, let's contrast that with our sales growth. Our sales growth was 14% in the quarter and 16% for the full year compared to 6% and 5% global industry growth during the same periods respectively. Excluding the impact of foreign currency, sales growth was approximately was 7% in the quarter and approximately 11% for the year, in line with our original guidance for 2007. And consistent with our results during the last few years, our growth at both the quarter and the full year came from our foreign operations. In the quarter, sales outside of US were up 24%, 13% excluding currency, while sales in the US were down 3%. For the full year, sales outside of the US were up 27%, 17% excluding currency compared to about 7% industry growth outside the US. In the US, sales for the year were flat despite the decline in North America production. And as a result, sales from our US operations in the fourth quarter on a consolidated basis represented 31% of our total sales, down 5 percentage points from the 36%…

Thank you, Robin. I will, Thea, the call coordinator please to go into the Q&A session. Thea?

(Operator Instructions) The first question is from Rich Kwas with Wachovia.

Hi. Good afternoon.

Hi, Rich.

Tim, in Europe here there seems to be some concern about economic weakness over there. I know a couple of weeks ago you indicated that you're seeing substantial growth over there with new business and that would offset expected any potential weakness in Europe. How do you feel about Europe now that we're about five weeks into the new year and what you're seeing out there?

Well, Rich, the quick answer is nothing has changed. Our products continue to have strong demand. Our challenge is to make enough turbochargers, continue to expand. Like I said, we're putting in more expansion on dual-clutch transmissions. So, for us, the strong demand for better fuel economy and the European cars coupled with the down-sizing from larger engines to smaller engines plays to build BorgWarner's strength and is a benefit to us. So, so far so good, and we expect it to continue for the year.

Okay. Could you remind us what you are assuming for European production for 2008?

I think we we’re flat in Europe, as a basic assumption, down about 5% in North America, sales slightly up in Asia, and the global market up about 3%. That will take care of the whole spectrum.

Okay. And a bigger picture question in terms of diesel, here in North America with the Japanese, what are you seeing on that front in terms of development contracts and momentum with them?

You are talking about diesel development with the Japanese OEMs in North America? Well, let's just say that we are working and we have a lot of active development programs going on with diesels with the Japanese. I know they are developing diesel engines for both Europe and North America. We work in Japan with the Japanese. We have active programs with the main players. And where they shift those engines or what vehicles they put them in and what countries they end up with, I don't know. But all I can tell you is that the core developments done in Japan and we're in the thick of it.

Okay. And then finally, Robin, what should we be assuming for the tax rate 2008?

We reaffirmed our guidance today for 2008 that we gave a couple of weeks ago. Within that guidance, we assume 26% effective tax rate.

Okay.

Lower than 2007. And as we said before, it's a result of lower tax rates in the foreign jurisdictions.

Okay. Thank you.

The next question is from David Leiker with Robert W. Baird.

Good afternoon.

Hi, David.

Hi, David.

Just a housekeeping item first. Purchase accounting adjustment, is that an SG&A or does that fall in cost of goods sold or somewhere else?

Mostly in cost of goods sold. There might be a little bit in SG&A, but it's predominantly cost of goods sold.

Okay. And, Tim, if you look at downsizing the gas engines and going to direct injection with turbos, there are some pluses and minuses there in terms of timing system and cooling in the turbo and the transmission. What kind of change do you have in vehicle if you have all those components? What kind of change in content?

Well, if you downsize and go from a larger engine to a downsized turbocharged smaller engine, it actually plays to our strength, David. It requires more BP or robust timing drive systems, stronger transmission components. While they are doing that, they may be interested in switching from a traditional automatic transmission to a dual-clutch automatic transmission. Those are all things that play to our strengths.

And you said 20%, if you had timing and transmission on a larger and then downsize that still have those in turbo, that 20%...

I think another way to look at it, Dave, is if you go from a V8 dual to dual-overhead cam that we happen to be a famous player of, you have a right bank and a left bank. Okay? And that maybe, I don't know. Let's just say $80 contact per engine. Now, let's say you are going to sort of -- if you go all the way to a four cylinder, which -- you can actually go from a gas V8 to a downsized turbocharged four cylinder and get probably the same performance of the gas as a V8. You actually obviously eliminate bank, so the timing driver is slightly less complex. So we may see a more robust timing drive, but it will have a little bit less content because of only one bank.

Right. But then you would add a turbo to that?

Yes, you picked up the turbo and maybe you picked up some more transmission speeds. Typically, they may go from the four-speed to a six-speed or something like that. Those are all more clutches on a traditional side. And if it's a dual clutch, we'll probably open it.

I'm trying to get the scale of increased content that you have there.

I'd have to go back and have some people run some numbers. If I give you a number now, it'd be really a ballpark guess. And I'll just follow-up with you on a real, more accurate number.

And then as you go through this process, how quickly can a one-year customer take gasoline engine and convert it to direct injection turbo or is that a newly designed engine?

Pretty much a newly designed engine. You're right on there.

Okay.

Engine programs are like in the three or four year time horizon. But some of these guys have been working on it for a year or two. So, it's not likely they are caught totally with their pants down.

Okay, great. Thank you.

Thank you, David.

The next question is from Rod Lache with Deutsche Bank.

Hello, everybody.

Hello, Rod.

I have a few questions. Firstly, you show corporate expenses net of equity in affiliate earnings in your release. And if I make an adjustment for the equity in affiliate earnings, it looks like your corporate expenses went from almost $39 million down to $31 million year-over-year. Is there a big drop in corporate overhead here or am I looking at this incorrectly?

The year-over-year change there is primarily related to provisions for environment expense that we incurred in 2006 versus 2007.

Okay, all right. And that's contributing to the incremental margin that we're seeing, I guess, on year-over-year basis, or did you exclude that?

At the corporate level, yes. But at the business unit level, if you look at the reporting segments, the incremental margin year-over-year, obviously they had nothing to do with it.

Okay. And, Ken, did you give us the organic growth excluding FX for Drivetrain and Engine?

Yes.

Would you mind repeating that just overall for those divisions?

If you're talking about for the quarter?

Yes, for the quarter.

Net of FX is $95 million for the company. And sales-wise, sales were up 16% with currency for the Engine group, actually 16.3%. But excluding currency, the sales were up 7.4%. On the Drivetrain, sales were up 9.2% including currency and up 3.8% if you exclude currency for the quarter.

Okay. And did you say what the EBIT impact overall from currency was?

It comes pretty close to our average operating income for the business. So the quarter was slightly above 9%.

Okay. And then, lastly, what percentage of BERU do you own now and what's the plan for that?

We own in excess of 75%. The requirement under Germany now is that we tender for the remaining portion. And we're just going to have to see if the rest of the shareholders that own the stock are interested in selling. They weren't interested a few years ago.

Okay. So there will be some kind of release or something on that coming out?

There will be details in the 10-K. There is a requirement in Germany that there'll be a transaction that gets approved at their Annual Shareholder Meeting. Basically that will require a tender for the remaining shares.

Okay. Thank you.

The next question is from Robert Barry with Goldman Sachs.

Hello, can you hear me?

Yeah, we can hear you.

This is actually Pat Archambault here for Rob.

All right.

Yeah. In terms of the outlook that you reaffirmed of 8% to 10%, I was wondering if you could maybe break that down by business group and potentially even by geography for us, just in terms of what you expect to do for '08.

I'll handle it by geography, which is probably an easier discussion. As we said when we gave the guidance, we're expecting 2008 to be another year of sizable decline in the US market. We're expecting our sales in North America to be down 5%, which is approximately another $100 million, and then our growth outside the US to be 15% plus. So, from a geographic perspective, if you look at that 8% to 10% growth, you are looking at the US down 5% and outside the US up 15%. We expect good growth performance in both the Engine and Drivetrain segments in 2008.

And how about within the US, can you just give us a little bit more color as to your expectations for the various businesses, Engine versus Drivetrain?

Well, we continue to see pressure from all our customers in the US markets, if they are not building vehicles or not building engines or transmissions or four-wheel drive. So we're seeing pressure on both side of the business in the US.

Okay. So in terms of the Engine Group, there is no offset from increasing segment of turbos and the US starting to trickle down to light vehicles or anything like that?

No.

Okay. Last question, can you just give us, or refresh us, in terms of your outlook for commodities that factored into your guidance?

As we look to 2008, we look for a little bit of a breather maybe. Commodity increases right now for us are about $25 million plus or minus, a few million. Not an exact science, stuff to catch right now.

And I think as we said at the last call, there's still a little bit of a question mark kind for aluminum and steel for this year, not necessarily with BorgWarner, but within the industry.

Is most of your buy contracted out on a longer term basis? I guess at what point would sort of that amount be relatively baked in without much credibility?

Well, some of our buy is covered by contractual pass-through. So we have contracts with our suppliers and contracts with our customers and some just goes right through. There is a lot of aluminum on some of that pass-through. We've got some nickel on that pass-through. We have some hedging. I think my people have done a really good job of managing commodities over the last couple of years. This year, like Robin said, we're going to see the total numbers definitely less than the total number was last year.

Yeah. Patrick, if you look at the level of expectations in 2008 it’s kind of back to our normal run rate of business. 2007 was a unique year for us, primarily due to the increase in nickel in the first half of 2007. But for the back half of 2007, raw material prices, while increasing, were more in line with our historical levels, and 2008 looks to be more of the same. So, this is nothing out of the ordinary for BorgWarner. It's part of our G&A each year to see raw material price increases $25 million to $35 million range, and that's just part of our cost reduction efforts throughout the year to offset that.

Okay, great. Thanks a lot, guys.

The next question is from Chris Ceraso with Credit Suisse.

Thanks. Good afternoon.

Hi, Chris.

Hi, Chris.

A few things. Tim, you mentioned all of the interesting downsized gas turbos, which was very clear at the trade show this year. Can you talk a little bit about your plans to grow your capacity? You mentioned a few things in your prepared remarks, but maybe if you can talk through where your current utilization rate is on turbo production capacity and what does that mean for CapEx over the next few years. Would you have to meaningfully dial up your capital spending to keep up with all the demand for turbos?

Yes. I can give you a real quick answer on the capacity utilization. Our demand is higher than capacity. We are probably producing 110%. We are putting capacity in China. We're putting capacity in Korea. We're putting capacity in Mexico. We're putting capacity in Poland. And it still probably won't be enough. So, we're having internal discussions as to how to forecast maybe more capacity than actually some of the customers have asked for, because what happens is the customer typically -- especially in Europe, but I think it will show up in lot of places in the future -- the customers will give us forecasts for the year. They end up taking more than that forecast, and we put capacity in for their forecasts or maybe even a little extra. And they end up taking more than we have capacity for. So, we are back to where we were a few years ago. The only difference is we're doing a better job of predicting the business and managing the business. And we're starting to see a profitability improve too. So, there will be more capacity put in, but I am not going to say where at this point in time for competitive reasons.

But --.

I am sorry go ahead, Robin.

I am going to say, Chris, it's not going to be outside our normal capital expense.

No, it all falls within our 5.5% to 6.5% range, which is, we kind of average in that 6% range, plus or minus. But with our growth platforms, 6% target per year, because there is plenty of room to work in terms of increased capacities or capital spending.

I want to be clear that capital spending, if you add in tooling, it's more like 6.5% to 7%.

Right.

Okay. What side of --

Chris, could I go back for a second and answer while we are still on this issue? Dave, I liked your asset question, which was a good question. I had a chance to do a little more noodleing here. If you go from a V engine with two banks to a four-cylinder engine on a downsized gas engine or even for diesel, you are taking out maybe 30% to 40% of the cost of the timing drive, and so you're maybe going from $80 an engine to $60 or maybe even, let's just roughly, even down the $50 or something like that. So, you're from $80 to $50, let's say. But you are adding in a turbochargers that could be, if it's a single turbocharged engine, it could be in that 250 to 350 range and if it's a regenerator of two stage, which you could have an R2S regenerator of two-stage four cylinder that would replace an eight sounder, you can double that in terms of turbocharger sales. So, the net is a big gain, if they downsize engines for BorgWarner. That assumes all the transmission stuff stays the same.

Okay. The flip side of the first question I asked about all the turbo demand is that it does seem to be bringing more competitors into the market. Any signs yet that there is extra pressure on pricing, or are you concerned that there will be me more pressure on pricing? Generally when you add more competitors, the pricing tends to go down?

The people who have announced that they're coming into the market are very smart rational suppliers. I think they are good companies, and we're used to competing against good turbocharger companies. We have been competitive all these years. We plan to continue to be competitive. We're focused on the higher technology portion of the turbocharger business. So as is typical across all our product lines, technology leadership tends to help us with our pricing structure. And I think that will continue in the future, including on turbochargers. That being said, the people who are thinking about coming into the marketplace are not known for being irrational suppliers. There is a huge amount of market growth. We have a strategy and not to be the market share leader. We have a strategy to be the technology leader. We are in lower mid-30% market share range, and that market is going to explode in terms of increased volumes. There is room for another competitor, no doubt about it. We have a strategy if we just keep our market share and growth at the market or even a pick up a little percent here and there, it shouldn't be too difficult for us to do. And I think we'll do very well for a long period of time.

Last one real quick. Do you have production contracts yet for the new compact DCT transmission?

I couldn't hear the end. You faded all at the end. Fresh for the new what?

Do you have any contracts yet for the new compact DCT?

Let's just say this, we've got development contracts. We're close to having some of our customers make some final decisions on what they want to do in terms of that technology versus, maybe, competing technology. We think we're in a good position to win some business. It tends to be in Asia right now. I won't say where, but we have a couple of countries in Asia that have a strong interest. So we don't have to worry about if we're going to sell that new unique BorgWarner design transmission. It's just a matter of when for dual-clutch.

Okay. Thanks a lot.

Thanks, Chris.

The next question is from Rob Hinchliffe with UBS.

Thanks. Good afternoon.

Hello.

Hey, just a couple left here. One, could you talk about the cadence for '08 in terms of earnings, obviously with the full year, and first half, second half; and when does your new business come in, and what do you think of the economy globally in general?

Well, I think as we're looking at 2008, we certainly see the first half of the year tougher than the second half of the year. Two things: I think the there is some inconsistency by some our customers here in North America with respect to schedules in the first quarter that's going to make it difficult for us. But to your point, as we ramp-up new business, a lot of new programs will be starting in the summer and early in the fall. And so we'll see more sales growth year-over-year in new programs in the back half of the year. But we're not expecting any quarter to be a decline from the prior year. Some will be just little higher than ours.

Okay. And then, just one more. Magna is getting close with the UAW up in Syracuse, it sounds like. Any implications, any read-through for your business, if Magna gets a little bit more aggressive on price and that impacts Drivetrain business or what should we think there?

The way I look at it is the longer they stay in Syracuse, the better off it is for BorgWarner. We're going to be in Mexico with a very competitive facility. We're going to compete head-to-head against anybody in the four-wheel business for transfer cases or the all-wheel drive side. We're going to be a fairly low-cost producer. Our footprint will be in Mexico, China, Korea, in addition to Seneca, which is currently and has been, is and will be a competitive location for us on transfer cases in all-wheel drive. So that being said, the customers, let's just say the North American customers are heavily involved with transfer cases. They are looking for multiple options. Some of them have been single sourced for long time without competition, some of them are looking for, when the contracts break up, they are looking for alternate sources and let's just say dual-sourcing arrangement. So we think in the long run we are going to be a beneficiary.

Makes sense. Thanks, Tim.

Sure. Thank you.

The next question is from Brian Johnson with Lehman Brothers.

Well, I think you're going to see some growth in North America maybe on some variable timing products. You're going to see some growth in North America, slight growth maybe on some tiny chain products. You're going to see growth. I don't know what your definition of midterm to long-term is, but we're going to see growth in turbochargers on pass cars and light truck vehicles in North America overtime. We continue to grow, although it's a lousy market, on the commercial truck side, we continue to do well. And we're growing our market share on the commercial truck side North America, really that's not pass car. In terms of engine growth, that will probably do well on the thermal side. So, North America may be shrinking as a percent of our total sales but we're still growing in North America. Just that we're growing so fast everywhere else that the percentages start to slip.

Right. But if you look at the difference in 4Q between Drivetrain down 1% US and Engine Group down 5%, what was driving that?

If you're talking about a sales decline of about $12 million in the quarter, no, it's not a significant decline relative to the size of the business. But certainly, you look at some of the reductions in production --

Well, on the Engine side in North America, we saw a little bit slippage on turbos, Morse products, chain products, emissions products, and they are down. And turbos kind of have to do with the Ford truck. And then the Morse and emissions tends to be on some of the truck side along with -- the thermal is up in North America. So there is a little bit of an offset. So, I mean once you see North stabilize, you're going to see growth.

Right.

I should also point out that compressor hasn't been really good for us is in the fourth quarter either.

Okay. So, it sounds like for the short term, meaning the next couple of quarters, Engine Group US won't be simply better than US production, it sounds like.

As I said earlier, we're expecting a decline of almost $100 million in our operations in the US, and that will be both in the Engine and Drivetrain side of the business.

Okay. Thanks.

Your next question is from Brett Hoselton with Key Banc Capital.

Good afternoon, gentleman.

Hi, Brett.

Hi, Brett.

First of all, just kind of a softball question for you, Tim. Something you could tell us how did you approach the new DCT transmission versus the old DCT transmission? In other words, I think people are under the impression that you're just making a cheapy DCT transmission.

Well, I appreciate your telling me the softball questions, you can give all the tough stuff to Robin. But actually that's a very good question, Brett. It's not a low-cost transmission. It's not a cheapy transmission. It is a transmission when we back up the original DCT transmission, it started as a manual transmission. It was currently in production with various manufacturers of manual transmissions. They wanted to convert it to automatics. So, the original DCT product started with -- first of all, it was new technology, so it started with the fairly sophisticated and somewhat slightly expensive design, which we have cost reduced and are continuing to cost reduce. But it also started as a manual and had to be converted. So, there were some inefficiencies in that conversion. The new design starts with a blank sheet of paper. We just say, don't design a manual, don't design an automatic, design an optimized fully-efficient, fully-optimized from clean sheet of paper approach on a DCT transmission. So, we are able to come up with completely new designs, patented architecture from BorgWarner, lower cost designs. We have probably confused the marketplace a little bit. Originally, we developed it for all those high-volume, low-cost cars that only had a manual transmission that wanted a very competitive price point automatic transmission. So, we developed that transmission for that market. But what we've done now is being able to reengineer that basic concept on that transmission, and we've now taken a torque range all the way up to 330 newt meters for diesels and gas, and that pretty much covers all the way up through the mid-sized vehicles. So, what started as a concept for one part of the market segment, we've now expanded to a significant portion of the light vehicle market segment.

Okay. So, as you think about China who is developing or building new transmission plants and adding capacity and so forth, they're faced with a traditional automatic transmission, a manual transmission or the choice of your transmission possibly, which sounds like… a CVT. Why would you choose your transmission design versus a manual and an automatic?

Better fuel economy, lower cost. China loves to be the leader in new technology. This will put them on the leading edge of technology. And those are three major points. Reduced packaging size, reduce costs, like I said.

So, as you are looking out into the future, Tim, and you're thinking about the revenue growth opportunities for the DCT transmission, do you see that as kind of just growing slowly or consistently with where we are at, or do you see if there is a possibility of a hockey stick increase in revenue growth for the DCT transmission?

Well, transmissions, they are on a long growth curve. People don't change transmissions and develop new transmissions, or launch new transmissions, or incorporate new transmission very quickly. They do it typically with new power trade, new engine combinations or new vehicles. It will be a long, steady growth platform, but there will be some major step functions in that curve where transmission capacity doesn't go in a little at a time, it goes in 150,000 to 200,000 units at a crack. And so, once you get an application, you're pretty much making step functions of 200,000 units at a pop. And I don't know if you call that steady, or do you call that large growth step by step, but it has the ability to be very a long self-sustaining growth platform with significant amount of content for us.

Thank you very much. And, Robin, BERU, the current ownership is, what, 75%?

North of 75%.

75%-plus. The minority interest hit for BERU at this point in time? In other words, you consolidated BERU.

Yes.

And you deduct the minority interest portion? How much is that?

It will be less going forward.

How much is it today? Robin, I think you just said that you're going to have to tender the shares, right?

Right.

And you may go from 35%-plus up to 100%. It depends on what the sellers might do. And you and I both know the game they are playing in China and Germany. So, the question is what would that 25% count -- how much would that juice your EPS by?

I think this will help you. The increased acquisition of shares of BERU is not meaningful from an EPS perspective. It's slightly accretive, but it barely rounds to a penny.

Okay. And then, finally, just on the acquisition front, what are you guys thinking at this point in time?

We have money to spend. We are looking at acquisitions that are strategic in nature. It's the same answer, probably the last year or two. We are very interested in doing acquisitions. They have to be the right opportunity for technology, or customer base, or geographic location, or all three. And they will be in the power train arena. There's probably a better chance that they will not be a distress asset. We're not in the business of going and cleaning up somebody else's problems. We have too much growth and we're too lean to go in and keep a lot of extra managers on board to solve somebody else's problems. So someone like a BERU will be a fairly robust decent asset.

If you were to say, look, we're in discussions with this many folks right now. Realistically, we think that we might be able to do something over this timeframe, what kind of --

Let's just say we have some kind of a program, some degree of activity, and a half dozen programs. And I would expect that we would land one fish, hopefully, sometime in the next 12 months.

Okay. Perfect. Thank you very much

Thanks, Brett.

We have time for one final question and that question comes from Joe Amaturo with Buckingham Research.

Good afternoon.

Hi, Joe

How are you? Just a quick question. Remind us how many shares to remain under your share repurchase authorization, and if you have any expectation of continuing to buyback the stock?

Just shy of 1 million left, under the existing authorization. And as we did in 2007, we'll continue to look at opportunities to kind of manage the capital structure.

Okay. And then, with the respect to the cash flow, how should we think about the working capital fluctuations in 2008 compared to 2007?

That's a good question. We did have a very strong year from a working capital perspective. In 2007, just a little bit more attention on our operations to managing working capital. Traditionally, as we grow sales, we add somewhere between $0.10 to $0.12, on a dollar of invested working capital. Sometimes a little bit more, if it's in regions of the world where their payment terms are significantly longer than they would be in the US. But that's a fair guideline. So, if you're at 8% to 10% growth in sales, you can calculate the dollar value, and then use $0.10 to $0.12 of sales per increased working capital.

And then, Tim, what's your expectation for the content per vehicle for these gasoline injection engines that are going to probably wind-up in the United States, and what's your market share expectation in the US for those engines?

Well, at the lower end, we'll probably be in the typical market share we have now on a global basis, which is in the 30s, okay. But given the fact that we are a technology leader in the market, share leader on gas turbos, there is a strong chance we could be higher than that if we're successful, as we, hopefully, plan to be. So, who knows? Hopefully, we can get 50% on that, but if I had to give you a target number, it would be in the 30s.

And then, what about the content per vehicle?

Content will be high. You're talking just on a turbocharger alone, it could be, let's just say, $200 to $700 of increased content, depending on how much turbochargers they use, and how sophisticated the turbo is. If it's a simple turbocharger, it's a low end. If it's a regenerative two-stage variable turbine geometry, it could be towards the high stage or high end. And that doesn't include any changes over, whether required to the transmission of four-wheel drive or any other parts that we make. Don't forget, it's not just turbochargers, it's glow plugs and instant starting systems that give us more penetration. In those things, BorgWarner, BERU is the leading technology supplier on that side too.

So basically, with this technology or these engines coming to United States, it just opens up the opportunity for you to pick up additional content per US vehicle, per se?

Right.

All right, thank you

Thanks, Joe.

With that, we will end our call today. You can direct any follow-up questions to Ken Lamb or to me. As most of you know, Ken is moving into a new job as Manager of Business development and M&A. I want to thank him for his great contributions to our IR programs over the past few years. I'll be moving back into the day-to-day IR and will be our primary contact. I look forward to working with all of you more closely again. Thank you for being with us today and good night.

That does conclude the BorgWarner 2007 fourth quarter and full year earnings conference call. Thank you for joining. You may now disconnect.