Bloomberg News

BorgWarner Sues Cummins Over Patents on Titanium TurboChargers

October 26, 2011

Oct. 26 (Bloomberg) -- BorgWarner Inc., the world’s biggest maker of automatic-transmission parts for vehicles, filed a lawsuit accusing Cummins Inc. of infringing three patents for a titanium wheel used in engine turbochargers.

BorgWarner said it has “made considerable investments in improving turbocharger technologies,” and Cummins is using the inventions “with reckless disregard” of BorgWarner’s rights, according to the complaint filed today in federal court in Asheville, North Carolina.

Turbochargers are used to improve the power and efficiency of smaller engines, and governments are pushing automakers to increase fuel economy in vehicles. BorgWarner in July said its second-quarter profit almost doubled, and the Auburn Hills, Michigan-based company boosted its forecast for revenue and profit for this year because of increased turbocharger sales.

BorgWarner previously sued Honeywell International Inc. over the same patents and settled the case in May for $32.5 million.

Cummins, based in Columbus, Indiana, said yesterday that sales in its components unit, which includes turbochargers, rose 32 percent to $1.02 billion. Janet Williams, a spokeswoman for the company, said in a telephone interview that Cummins doesn’t comment on pending litigation.

The compressor wheels at issue in the case direct air to an engine’s intake manifold. BorgWarner’s inventions related to a cost-effective cast titanium compressor wheel, the design of the wheel and a method for making turbochargers with the titanium wheel.

The case is BorgWarner Inc. v. Cummins Inc., 11cv283, U.S. District Court for the Western District of North Carolina (Asheville).

--With assistance from Mark Clothier in Southfield, Michigan. Editor: Michael Shepard, Steve Walsh

To contact the reporters on this story: Susan Decker in Washington at sdecker1@bloomberg.net;

To contact the editor responsible for this story: Michael Shepard at mshepard7@bloomberg.net


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