Turbocharging for Improved Engine Performance & Reduced CO2 Emissions. Thomas Grissom Director, Business Development BorgWarner Turbo Systems

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Turbocharging for Improved Engine Performance & Reduced CO2 Emissions Thomas Grissom Director, Business Development BorgWarner Turbo Systems 1

Turbocharging for Improved Engine Performance & Reduced CO2 Emissions Powertrain Technologies for Fuel Savings Global Engine Downsizing Trends Turbocharger & Engine Boosting Performance Why Boosting with Engine Downsizing? Conclusions 2

Powertrain Technologies for Fuel Savings Automatic Transmissions Light Vehicle Turbochargers DCT (17%)* CVT (8%)* 6/7/8/9 Spd (5%)* 3/4/5 Spd (-11%)* Other (8%)* (5%)*Diesel (14%)* Gasoline Thermal Systems Variable Cam Timing Fuel Economy Electronically- Controlled (26%)* (11%)* VCT Systems Global industry volumes; units in millions *CAGRs are shown in parentheses 3

Global Engine Downsizing Trends 4 cylinder engines maintain their dominance 2 and 3 cylinder engines have highest % growth 6 cylinder production is flat and 8 cylinder in decline Light Vehicle Engines Produced by Engine Size 8 and 10 cylinder engines (-4%)* 6 cylinder engines (1%)* 4 cylinder engines (5%)* 2 and 3 cylinder engines (14%)* Other (2%)* Source: IHS Automotive, BorgWarner forecasts (Jan 2012) *CAGRs are shown in parentheses 4

Turbocharging for Improved Engine Performance & Reduced CO2 Emissions Turbocharger & Engine Boosting Performance 5

Brief History of Turbocharging 1927: Swiss engineer Alfred Buchi is granted the first Patent for exhaust driven Turbo-Supercharging or Turbocharger. 1952: Garrett (Honeywell) & Schwitzer (BorgWarner) begin Turbocharger production for Caterpillar & Mack Truck. 1962: First Passenger Car Turbo application, General Motors Corvair is introduced, followed by 1963 Oldsmobile Jetfire Turbo-Rocket V8. 1979: Beginning of Downsized Turbo Era with Ford Mustang 2.3-liter, 4 cylinder engine, Chrysler & GM also Compete with Turbo Models. 1980: BorgWarner and IHI Japan form 50/50 Joint Venture, Warner-Ishi. MHI of Japan begins development for US. 1997: BorgWarner purchases majority shares of AG Kühnle, Kopp & Kausch from Penske Corporation. 1999: Kuhlman Corporation, parent of Schwitzer is purchased by BorgWarner and becomes part of BorgWarner Turbo Systems. 2008: Bosch-Mahle & Continental Turbo Systems Begin Development. 6

Energy Available for Boosting For our purposes, we will assume an engine of average thermal efficiency and typical heat losses through exhaust and cooling water 1/3 Useful Power to Crankshaft $$ Fuel Energy (100%) 1/3 Heat Loss to Cooling Water 1/3 Heat Loss through Exhaust Turbocharging improves efficiency by using exhaust gas energy that would otherwise be lost 7

Turbo System in Operation 8

Turbocharger Performance Basics Boosting device that uses an exhaust turbine to drive a compressor by way of a common shaft. Advantages - Utilizes exhaust gas energy that would otherwise lost - Power when needed for transient performance - Allows downsizing for fuel economy and emissions Main Challenge - Maintaining transient performance (reduced lag) 9

Turbocharging Configurations Improved Transient Response & Higher BMEP Turbine Control Variable Twin Scroll Turbine Regulated 2-Stage Regulated 3-Turbocharger System Twin Scroll WG Variable Turbine Geometry Mono Scroll WG Improved Response & Higher BMEP 10

Turbocharging for Improved Engine Performance & Reduced CO2 Emissions Why Boosting with Engine Downsizing? 11

Smaller Displacement Equals Improved Fuel Economy The Horsepower needed to maintain speed on level road is quite low. 28HP-55MPH 50HP-75MPH 10HP-25MPH Aerodynamic Drag & Rolling Resistance of the Tires 12

Why Boosting with Downsizing? A Practical Example Typical Mid Size 4-Door Passenger Car 3600 Pound Vehicle Weight 2 liter Naturally Aspirated 4 cylinder Engine 3.3 liter V6 Engine 2 liter Turbocharged 4 Cylinder Engine Prediction of Passing Performance* 2-lane Road, 55 mph Speed Limit Passing Capability 40 to 60 mph Acceleration Measure Time Required to Complete Maneuver * Using GT Drive Model 13

2 Liter Naturally Aspirated 141 hp @ 6000 RPM and 187 Nm @ 4500 6.5 Sec 14

3.3 Liter Naturally Aspirated 278 hp @ 6400 RPM and 350 Nm @ 5200 RPM 3.2 Sec 15

2 Liter Turbocharged 224 hp @ 5500 RPM and 355 Nm @1500 RPM 2.8 Sec 16

Summary Comparison Turbocharging provides the fuel economy potential of the I4 with the performance of a V6 when needed 17

Future Development Game Changers Goal: Acceleration of CO 2 reduction 5 YEAR HORIZON 10 YEAR HORIZON Downsizing & Downspeeding Energy Management Increased Low End Torque Energy Recuperation ebooster eturbocompound & EAT Key Technologies Enabler Integration of Turbo Machinery, High Speed Motors & Power Electronics ebooster Electrically Assisted Turbo (EAT) eturbocompound 18

Conclusions Global Fuel Consumption & CO2 Emission Reduction Targets Will Continue Into The Future Internal Combustion Engines Will Remain Dominant & Improve Meet These Demands Turbocharging Plays a Huge Role in Meeting Current & Future Fuel Economy and Performance Goals Driver Performance Expectations Will be Met 19

Thank You, Thomas Grissom, BorgWarner Turbo Systems better fuel economy reduced emissions great performance 20