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Greetings, fellow Fools!

I'll be interviewing BorgWarner CEO Timothy M. Manganello at some point in the near future. Anyone have any questions they'd like answers to?

If so, just post them right here and I'll see if I can incorporate them into the interview.

Foolish best regards,

Rich Smith
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Rich, I continue to marvel at how well Borg Warner is doing compared to the rest of the auto supplier industry - especially contrasted with Delphi Corp., now in Chapter 11.

Of course Delphi, despite its spinoff from GM, is strapped by its GM-era "legacy costs" (i.e. inherited pension and health plan obligations to the UAW.)

So to what do you attribute Borg-Warner's continued success - the fact they're a supplier to just about all automakers, including those overseas - and not just the domestic ones?

Bill
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We'll get a better idea about that once the interview comes out, Bill.

But no, I don't think it has to do with international diversification. In prepping for the interview, I learned that 50% of the firm's sales come from just four companies: the Detroit Big Three & Volkswagen.

Given that, I think it's even more of a wonder that they're doing so well, with relatively little of their business coming from Japan, Korea, etc.

Fool on!

Rich
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...I don't think it has to do with international diversification. In prepping for the interview, I learned that 50% of the firm's sales come from just four companies: the Detroit Big Three & Volkswagen.

Given that, I think it's even more of a wonder that they're doing so well, with relatively little of their business coming from Japan, Korea, etc.

Fool on!
Rich

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Your 50% figure is right, according to the management discussion in the annual report. (Page 20) So the other half comes from other international sales.

They give slightly different percentages projected for 2006 in the pie chart on page 10. And there they state that 75% comes from non-North America Big 3 sales.

Not necessarily a contradiction. This would include sales to Daimler Chrysler's European production, as well as GM and Ford. And since they don't list them separately in the percentages, but do include the brand labels in the graphics, (page 11) I would suspect that Volvo, Jaguar, and Mazda are included in the Ford total, just as Mercedes-Benz would be included in Daimler-Chrysler.

And they list their production facilites and tech. centers, including
18 in Europe and 12 in Asia.

Bill

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Rich,
I would like to you to ask:

1. What do they see as the best use of current cash flow: debt reduction, acquisition, repurchase shares?

2. How can they mitigate the impact of GM going bankrupt?

3. What do they see is the biggest threat to their business right now?

Best Regards,
bulwnl
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And Opel for GM -- good points, Bill.

Rich
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My question:

In spite of the high price of fuel, there are still relatively few high-mileage cars offered for sale in the USA. Those that are offered sell at a significant premium.

How soon can we expect to see more diesel and hybrid cars offered to the American consumer especially from US automakers? What percentage of these new offerings will feature BW components?


CycleGirl
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