Good morning. My name is Sharon and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2017 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

Thank you, Sharon. Good morning, everyone, and thank you all for joining us. We issued our earnings release at 6:30 AM Eastern Time. It's posted on our website, borgwarner.com, on our homepage and on our Investor Relations homepage. There will be a replay of today's call available through May 11th. The dial-in for that call is 855-859-2056, and the conference ID is 49068373. Or you can listen to the replay on our website. With regard to our Investor Relations calendar, we'll be attending several conferences between now and our next earnings release. Please see the Events section of our Investor Relations homepage for a full list. 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. Now back to today's call. First, James Verrier, our President and CEO, will comment on the industry, provide a high-level overview of our Q1 results as well as discuss some of our recent product wins. Then Ron Hundzinski, our CFO, will discuss the details of our results as well as our guidance. Please note that we posted an earnings call presentation to the IR page of our website. You'll find the link in the Events and Presentations section below the notice for this call. We encourage you to follow along through these slides during our discussion. With that, I'll turn it over to James.

Thank you, Patrick and good day and welcome to everybody. Thank you for joining our call. As Pat said, Ron and I are really pleased to share our results from first quarter 2017 and update you on how we're progressing towards delivering our 2017 targets. So I'm going to start by sharing a few thoughts on the macro environment in the industry. And for those of you following along, I'm now going to be on slide five. So, from a macro perspective, we recognize and see – there is instability out there in many aspects. But I think what's interesting and key for us is in general, the outlook for the auto industry has been good and remains good. If I talk a little bit about global light vehicle production in Q1, growth was strong. In Europe, light vehicle production rose about 6%. China light vehicle production was up close to 7%, which was well ahead of our expectations as we went into the quarter. And in North America, light vehicle industry production increased low single digits with continued strong mix. As I start to think about the outlook for the market, let me start light vehicle 2017 calendar year. And I would say we're closely aligned with HIS' view, which is calling for about 2% growth in China. We see Europe up about 1%, and we see North American production down between 1% and 2%. Now if you look at that on a weighted basis from a BorgWarner perspective, that would imply global production growth of slightly less than 1% for us. A word about commercial vehicle where we are seeing signs of improvement; in North America, we see orders and medium-duty sales improving. And as we look towards China and Europe, the outlook has improved, and we think…

Thank you, James and good day, everyone. Before I review the financial details, I would like to provide you some of the highlights as I see them for the quarter. As James said, I think the first one is outstanding growth, and it significantly was above our guidance for the quarter. And I will even give you more color on that a little bit later. Our operating performance was as expected for us for the quarter. And most importantly, the quarter positions us stronger towards our full year guidance. So as Pat mentioned, I will be referring to supplemental financial slide deck that is posted on our IR website, and I do encourage you to follow along. First, I'd like to focus your attention on slide 11. Throughout the presentation, I will highlight certain non-U.S. GAAP measures to provide a clear picture of how the core business performed and for comparisons with prior periods. Specifically, we will be excluding the impact of FX, net M&A of the Remy light vehicle aftermarket divestiture and other non-comparable items from certain U.S. GAAP measures. When you hear me say on a comparable basis, that means excluding everything I just mentioned; when you hear me say on a reported basis, that means U.S. GAAP. So now let's turn to slide 12. On a reported basis, sales were up 1.6%. On a comparable basis, our organic sales were up 12.8%. This was approximately 600 basis points ahead of the high-end of our guidance. Our weighted average industry production was about 4.5%. Our guide was set at 0.5%. So we saw 400 basis points tailwind from production. Our expectation for China growth was low double digits. Our growth came in at 29%, resulting in about 150 basis points of tailwind. Commercial vehicle was a benefit as…

Sharon, we're ready for questions.

Your first question comes from Colin Langan with UBS. Please go ahead.

Hi. Great. Thanks for taking my question. Why – and if you're indicating (28:54) the high end of sales guidance is likely, but given your very strong organic growth out of the gate, why not raise sales guidance? I mean, actually, I'm surprised like things are fairly flattish from here on out.

Yeah. Good morning, Colin. This is James. Fair question. First of all, thanks for the comment on a strong Q1. We really did feel good about that strong organic growth. A couple of things to think about. It's only one quarter in, and I think we need to calibrate that. As we alluded to, there are a couple of things that we're paying attention to – the diesel/gas mix, the China and North America. So we've got to watch those a little bit. So I think it's just a prudent thing at this stage to get another quarter under our belt. With that said, as Ron and I both alluded to, we are comfortable that we're certainly trending towards the high end of our guidance. And let's get another quarter under our belt is kind of a key thing, I would say.

Got it. And on your comments, you've indicated China was very strong, a big outperformer. What's driving that? And any update on the DCT joint venture in China? Is that finally starting to kick in?

Yes. No. Ron explained it. I think it was 29% growth for the first quarter, so well above the market. The really good thing, Colin, was it was pretty much across all of our product offering, we saw that growth in China, so both on the engine side and the Drivetrain side. I think, from a, let me say, a strategic perspective, we are starting to see the strong acceleration of DCT in China. I know for many of you that have been following us for a while, that's been a little bit long in coming. But we did see a notable uplift in DCT revenue in China, which is a big part. But really it was across the whole product portfolio we saw strong growth in China.

Got it. All right. Thanks for taking my questions and congrats on a good quarter.

Thank you.

Thanks, Colin.

Your next question comes from Rod Lache from Deutsche Bank.

Good morning, everybody.

Good morning.

Had a couple of things I wanted to ask. One is just on the backlog, if I add the first quarter and then your forecast for the second quarter, your first half backlog contribution is $350 million, $400 million. Your full year is $410 million to $590 million. So, it looks like 85% of it is happening in the first half. Is that a timing issue? Is the first half taking away from something that you had in the back half? Or is that just conservatism?

Yes, Rod. This is James. I'll take a shot at it and then Ron can add as needed. I think the way I look at it at least is we feel good about the backlog. The first quarter is coming in a little bit ahead of what we thought. Second quarter backlog looks pretty good too. I don't think it's so much of a pulling. I think it's a little bit of a, let's give ourself a little bit more time to see how things play out, frankly speaking, before we would want to readjust the backlog number. There's nothing materially pulling in from a launch perspective, Rod. It's not a big shift of product mix, launch or anything like that. I think it's just Q1 came in stronger than we'd anticipated. We're digesting that. We want to see how that runs into the second quarter. And then we'll have a better view of what the second half backlog looks like. But no fundamental shift kind of is the point, Rod, in terms of technology, adoption, launch cadence, those types of things.

The only thing I would add, Rod, is sometimes, you hit on all cylinders and it was one of those quarters where we actually hit on (32:51) cylinders, in the past, we have some positive news and then we have some negative news. This is one of those quarters where everything just, quite frankly, came in positive, right where we hoped it would come in and it did. So, it was a great quarter.

Great. And then secondly, just given the magnitude of the diesel decline that we're seeing in Europe, it would seem that the European market broadly may actually be seeing a rise in CO2 emissions rather than a decline, just given that CO2 is less for diesel. So, I'd imagine that they'd be scrambling, your customers would be scrambling for technologies to help offset that. And I was hoping you might be able to give us some kind of a quantification or a sense of what is actually happening, what's the pace of contract awards that you're seeing this year versus maybe last year? Is there anything that we can take away from that vis-à-vis your growth and as you get out towards – closer to 2020?

Yes, Rod, I'll take a shot at that for you. I think you're right. First of all, we do as we showed in the chart there that the diesel decline has accelerated faster than I think what everybody was anticipating. So that's moved down that 350 bps in the first quarter versus our expectation of 100 bps or so. We do see that potentially going down further through the rest of the year. So, we're seeing it accelerate a little faster move to gas more a little faster. It's certainly going to put pressure on 2017 CO2 attainment for sure. What we're seeing from a more, I don't know, medium-term perspective, Rod, I would say it's fair that we are seeing even more increased development activity in contracts around gas, advanced gas particularly, and hybrids and less focus on diesel development. I don't want to portray that there's not optimization in programs going on for diesel, because there is. But it's fair to say that we've seen an uptick in focus on EV architecture discussions, hybrids and particularly a lot of work around optimizing the advanced gasoline engines. So, hopefully that helps a little bit, Rod. I think where it all ends and settles, we'll have to see how it plays out during the year. From a Borg perspective, we feel good. We feel well-positioned because we're participating on those hybrid architectures, the gas architectures and obviously EV architectures too. So, more to come, Rod, but I think the key message is, it's accelerating.

Yes. And just lastly on a housekeeping item, can you give us your expectation for raw materials for the year? And what was the dollar headwind from light vehicle diesel and tailwind from commercial vehicle in the quarter?

I'll talk about the commodity. Commodity headwind was $10 million for the full year. But it was mostly weighted to the first quarter. But, what really happened in the quarter, Rod, is we saw the inflationary environment. And as we said before, roughly 65% is contractually passed through. And then we typically do better than that on negotiations, and what happened is we did better than that. We were able to negotiate more pass-through. So, therefore, you didn't really see any kind of headwind in the quarter in commodity. But, inflationary environment is there, I'd like to point that out.

(36:29) for the year?

Pardon?

What are you expecting for the year in terms of inflation?

It was $10 million of – this was the commodity impact-wise, and that includes some corporate, as well, cost in there for the full year, Rod.

That's what you're expecting for the full year. So, okay, great, thank you.

Right. You got another question on commercial vehicle, what was your...

Yes. So can you quantify the commercial vehicle tailwind in terms of revenue in the quarter and the light vehicle diesel headwinds, just in terms of ballpark?

We can give you more numbers later on, but I'll tell you the magnitude. We saw low double-digit growth in that segment to give you an idea of how much of a tailwind it was, All right? So, that's on top of, we haven't seen growth now for three years or four years. So, I mean, it definitely was a nice tailwind. And then I think in the script, it was about 100 basis points of the outgrowth that we had, okay?

Great. Thank you.

Thanks, Rod.

Your next question comes from Brian Johnson with Barclays.

Hi. Yes. Thank you. Couple of questions. First around diesel, I see the slide in terms of the back – the shift in the backlog from diesel to advanced gas. Can you give us a sense of, A, the manufacturing footprint for those substitute products, and, B, what that implies about the decrementals, incrementals, as you ramp down diesel, things like turbos and EGR and ramp up the gas equivalents?

Yes, Brian, I can take a shot at that. So, for us, what it implies is, when customers, OEMs shift capacity from diesel to gasoline turbos, we're in a good place. Most of the capacity that we have is generic between a gas turbo and a diesel turbo. There are some unique things within the supply chain. But that's manageable. Likewise, on the EGR technology, those products migrate from a diesel EGR platform to gas, it's transferable. I would say the (38:41) is a little sticky that's really not that transferable, but that's a smaller one of the three and our VCT capacity ramp is well underway. So, for us, it's not a big deal, really, and we'll be able to move much quicker and much more flexibly than the OEMs. That's for sure, Brian.

Okay. Second question, if we look at the organic growth, impressive in Drivetrain for last several quarters, and take out that DCT launch, what is roughly the organic growth rate (39:12) markets that's in? And is there any one driver or is it everything from chains to clutches and so forth?

No, good question, Brian. It's the full spectrum in Drivetrain. So, let me give you a few examples or a few highlights. We clearly benefited from the truck mix in North America as an example. So transfer case technology is clearly in the Drivetrain segment. So. we're seeing growth there. We're seeing growth on the rotating electrics from the ex-Remy business across regionally. We're also gaining on our, what I would call our core transmission business, so as we move forward with friction plates and clutch packs, that's driving growth. And then DCT, particularly in China, where we're seeing growth, both with the domestics and the global guys. So, not one product, Brian. The good news for us, it's a balance across all of the Drivetrain products we're seeing growth and it's balanced regionally also.

Okay. And then can you give us a number of Drivetrain ex-DCT growth?

I don't know. We can probably get that for you later, Brian, (40:28) some calculations, All right. We'll get back to you, Brian.

Thanks.

Your next question comes from Ryan Brinkman from JPMorgan.

Hi. This is (40:43) on behalf of Ryan Brinkman.

Good morning (40:47).

Good morning. There are some news articles recently that suggested that Continental and Delphi are considering combining their powertrain businesses. So, the articles are suggesting that Delphi and Continental would retain themselves (41:01) seemingly like growth here, electrification enabling technologies, while contributing to some sort of joint venture than more conventional products, the ones that would boost efficiencies for internal combustion engines. Now, you made clear a couple of times on many occasions that BorgWarner is definitely very strongly levered to all different types of powertrains and Drivetrains. My question just relates to the more conventional product areas, the ones that would solely boost the efficiency of internal combustion. So, do you think these are also growth areas? Like for example, like turbochargers' (41:41), so we know there's a lot of growth in electrification and hybrids. But what about the just conventional combustion optimization technology, so are these also growth areas? Thanks.

Yes. Yes, sure. It's a good thought. Let me give you a couple of comments. First of all, I want to be clear, I'm not going to make any comments regarding Conti or Delphi. That's not my place to do that. What I can do is talk about why we're excited about the growth of BorgWarner in our propulsion business. To specifically get to your quick question of do we see growth in combustion or internal combustion-related business? Yes, we do. We do. And when we published our data towards the end of last year in our Investor Day, the way to think about the combustion space is it's essentially a flat market as you look out the next five years to seven years. So, there's no real growth there in the market. BorgWarner expects to grow in mid-single-digit growth and that's primarily driven through content adds (42:42) and more increased penetration around turbochargers, EGR technology and variable valve timing technology. So we do see growth for BorgWarner in the mid-single digits for combustion-related products. That's why we're so excited about it. And we also leverage then on top of that the growth in hybrid products and electric products that makes for us, propulsion's absolutely a great business for us to be in.

Okay. Great. Thank you.

Your next question comes from John Murphy with Bank of America Merrill Lynch.

Good morning, guys. You did a great job of kind of delineating through the revenue shift when you look at the diesel shift to gas in Europe. Just curious, as you look at the profit returns in that, are they similar or are they better on the gas side? And then also as we think way out in the future as Remy really grows, and our expectation takes off, will we see better profit returns from that content, or will it be similar?

So, John, this is Ron. The mix from diesel to gas are similar in margins. If you take a look at the manufacturing process and the components, as James said earlier, there's not a lot of investments to be made. You're going down the same production lines. Turbocharger still has a compressor wheel in it, for example. And the EGR products are very similar. So we don't see any kind of negative movement or positive movement either way quite frankly, in the mix from diesel to gasoline.

And then with electrification (44:16)?

Yes.

Yes, so electrification, as you know, we are shifting products in electrification, so we have experience already in what the cost looks like, what the sales prices are. And they go through a very rigorous review as far as approval, quite frankly, to make the capital investment. And they've all passed, which means that they line up with the current profile of return on invested capital in this company, and the margin profile is very similar. So again, we don't see any negative impact by the movement into that area.

And any early read on the GM Europe sale to PSA, what that means sort of positively, negatively or from an opportunistic standpoint for you guys?

Yeah, not – we haven't really seen anything at this point, I would say, John. To be fair, we've historically done well with GM in Europe and we've done well with PSA in Europe. So our thought is it'll be okay for us, it will be good for us. But we haven't really seen anything materially emerge if that's the right way to think about it, John. But when it does, we feel pretty good about it.

Great. Thank you very much.

Thank you, John.

Your next question comes from Chris McNally from Evercore ISI.

Thank so much, guys. And really appreciate the extra detail on the call. Just a further question into – sorry to beat a dead horse on the Drivetrain growth. Since we saw the step up come in Q4 of last year, it's now been two really strong quarters. Is there also something within there on client mix? Meaning, you had some of the launches, I think it was on the Super-Duty in Q4. So could we expect as we sort of comp through that for a year, we can have roughly high growth in the Drivetrain? And then obviously once you comp through that in a couple of quarters, growth would come back down, more in line with Engine and Drivetrain growing at the same rate.

Yeah. I'll take a shot for you. I think, first of all, we feel very good about the traction we're getting in around Drivetrain growth. It's positive. It is pretty broad across a lot of different platforms and products. So, it's difficult to single out one platform or one type of thing. As I would say to you, I think the bigger move – the things that are going to move it around will be think of truck mix in North American definitely moves it because that's transportation (46:53) content. DCT in China will move or move it up and down fairly quickly. And the growth of ex Remy starter alternator business will also move it. So I hope that gives you some sense. We do expect strong growth, as we've said, in Drivetrain. It's going to continue, but it's a little bit difficult when you try and break it down by vehicle platform or get too granular because I think there's just a lot of broad growth regionally and across a lot of different customers and platforms now. But the punch line is, Drivetrain is a strong growth part of the company and which we feel very good about.

Okay. That's fantastic. And then is it fair to say at least when we look at the really strong growth in Q1 and we'll see in Q2, that probably the first half we are benefiting, at least, from one of those three truck mix is pretty strong, I mean, in the first half? And we'll see the builds in the second half, that's at least maybe one of the reasons you're just holding off. You want to see a little bit more of the production schedule for the second half of the year before you're able to make more of a comment on full year Drivetrain growth being at this level?

Yeah, I think that's a fair perspective. And in addition to that, I would say China DCT also. Those are the two that are going to – another quarter is really going to help us get more clarity for the rest of the year for you guys. Truck mix and China DCT are the two that are going to move the most, and we want to just get a sense. Just to give you a little bit of additional color, part of the truck mix is relatively easy to track. China DCT, remember that a lot of these are in launch and start-up volume mode. So that's a little bit trickier to predict, if that helps you. That's kind of what drives a little bit of the uncertainty is how fast will the launch go, what's the vehicle adoption rates in China. But generally, as you can see in the first quarter, we're off to a good start and feeling good about it.

Got it. That's great. Thanks so much guys.

Thank you.

Your next question comes from Joseph Spak with RBC Capital Markets.

Hi. This is Jacob Hughes on for Joe.

Hey Jacob.

Hey, how are you doing? I think Great Wall Motor (49:17) announced they'd start manufacturing dual-clutch transmissions in April. Is that a change versus prior? Or are they just doing the final assembly? Or what's the impact there?

Well, they've talked obviously publicly about building dual-clutch transmissions in China for themselves. So they've talked about that publicly, and I've talked about that ramp. At this stage, I'm not really in a good position to give you clarity and detail on what that means for BorgWarner.

Okay.

But I – yeah, I can confirm that – as they've already confirmed that they're moving towards DCT. And frankly speaking, it's not a surprise. As I put in my comments this morning, China (50:05) has launched its DCT with BorgWarner content. And we're seeing more acceleration and adoption of DCT in China. So that's what I can tell you at this point.

Okay. And then on diesel, are you seeing more pricing pressure on legacy diesel content as you bid for electrical content with those same customers?

I would say, in general, the pricing environment is fairly consistent with historical levels. So there is generally, as you know, that pressure exists in the market. We have a – historically, we've done about 1.5% to 2% price down. That's a little better than the industry based on our strong market position. And we think that will continue on.

Okay. Thank you.

Thanks.

Your next question comes from David Kelley with Jefferies.

Good morning, guys. Thanks for taking my questions. Just a quick one on the organic growth in the Engine business and despite the European diesel mix shift here. You mentioned strength kind of across the board in China. Just maybe wondering if you could talk about turbocharger penetration in China and maybe North America as well. Are you seeing any accelerated adoption there in either market? And how it compares maybe to your expectations going into the year so far?

Yeah, David, good thought. I think in general, it's playing out pretty much as we had anticipated in terms of both China and North America for turbo penetration numbers. I don't have the number in front of me. Maybe we can get back to you, David.

Penetration in China is 35%. North America is 20%.

Okay. But I would say it's pretty much in line, David. And that's obviously what's driving good growth for us in those two regions. But no acceleration or deceleration in terms of adoption rate from what we had anticipated at the beginning of the year, if that's helpful for you.

Okay, great. Thank you. Very helpful. And then kind of switching gears here, it'd be great to get some commentary on the Autotech Ventures investment, maybe kind of the thought process behind the move, how you plan on leveraging the investment, and is there any specific segments or high-level secular opportunities you're actively looking for that may be that investment might help connect you to?

Yeah. No, thanks for bringing that up, David. It's – yeah, it's really exciting for us. What it fundamentally has done for us is given us a very, frankly, effective and efficient way to get access to a lot of start-up business and operations focused on ground transportation. So this is not a highly broad-reaching area for ground transportation. So it's focused in our space. And it basically gets access to start-ups in – around the world. So, it's not just a "Silicon Valley Initiative". We see start-up ideas from Tel Aviv. We see them from Europe. We see them – and we have the ability to engage with these start-ups in very different ways. Key to us, though, is getting access to some of those start-up technologies that can help our business, could be disruptive to our business, and making sure that we don't ever get surprised with some new inventions that are coming out of there that we're not part of. We want to get in on the front end of it. So, yeah, it's pretty exciting, it's pretty early for us. But we're really, really encouraged by both the amount of start-ups that are coming through and the relevance to our propulsion space. So there'll be a lot more to come on this, David, but it's very exciting and we're off to a good start with it.

All right, great. I really appreciate the color. Thanks for taking my questions, guys.

Thanks.

Thank you, David.

Your next question comes from Adam Jonas with Morgan Stanley. Adam Michael Jonas - Morgan Stanley & Co. LLC: Hey, everybody. So the first question is in reference to Continental's Capital Markets kind of powertrain day, a couple of days ago. They had disclosed that they were loss-making in their EV efforts, and perhaps temporarily so as they're kind of ramping up. I'm just wondering, is that – as – they think they're working on their last-generation internal combustion engine. I don't know if you agree with that. But can you, at least, if you isolate the EV efforts for passenger car propulsion – I'm excluding the core business of Remy, let's say, that you acquired, is it reasonable to assume that as you kind of invest and build that up, at least temporarily, there's some losses that won't be covered by revenue for a number of years before the payoff comes?

Yeah, Adam, let me take a shot at that for you. We don't see that is the quick punch line. We're not – and there's a couple of data points here. We've been invested into hybrids and electrics for a number of years. And if you think about it, our R&D percentage has kind of trended around that 4% through that period. So that's one indicator. And if you look at our after-tax ROIC numbers over that period, they're not coming materially down. They're bouncing around that 15% area. And as we look today at the products that we're shipping today in boxes to customers, single-speed transmissions and other products, those are all at the BorgWarner-type levels. So we are not experiencing any headwinds as we migrate the portfolio to more hybrids and more electrics for the company (55:35). We're not seeing that at all. Adam Michael Jonas - Morgan Stanley & Co. LLC: Thanks, James. And just as a follow-up, what is your working assumption of when the cost of owning an EV becomes lower than owning an internal combustion engine?

You asking for the when, Adam, what year or what... Adam Michael Jonas - Morgan Stanley & Co. LLC: Yeah. Well, I mean, like roughly. And I know you can't pinpoint a year. But do you have a working assumption of when your customers – or the end customer is going to find an EV to be more affordable to own than an internal combustion engine?

Yeah, I would say this way, Adam. We have – we – for sure, we model out the various propulsion architectures over time and look at those kind of variables. We don't have a pinpoint number that we look at. What we look at is what do we see as the future of a hybrid propulsion system costing and what are the drivers behind that, same with the pure EV. But, candidly speaking, we're not in the game of deciding the when and the what. We're going to participate across all three architectures and be well positioned there. So for us, it's not a big, big driver either way, what that mix is between hybrid and electric and combustion products. Adam Michael Jonas - Morgan Stanley & Co. LLC: That's it (56:48) James. Thank you.

Thank you.

Thanks, Adam.

Your next question comes from Richard Kwas from Wells Fargo Securities.

Hi. Good morning, gentlemen.

Good morning, Rich.

Hey, Rich.

Just a few quick follow-ups, hopefully. So, Ron, CV assumption for the year, my recollection was within the initial guidance, it was kind of flat. Is that revised higher at this point? I would assume it had.

Rich, you're right. First of all, the guidance was flat. And I would say the guide at this point – we had a good quarter, but at this point, the guide still is flat, Rich. This market's fooled us in the past and we got to see – like James said earlier, we got to see another quarter of continued improvement before we get really excited about it.

Okay. And what's China heavy truck for you now, as a percentage of the commercial vehicle, your commercial vehicle business?

I'd say about 15% or 20% for the total CV business, Rich.

Okay. All right, great. And then – also within the guidance is the diesel penetration closer to down 200 basis points for the year? Is that what's embedded? I know you've said 100 to 200 basis points annually over the next few years, but are you embedding a more slightly conservative outlook?

Yeah. I would say as we came in 100 to 200 basis points, we're probably at 300 to 400 basis points now, Rich, is what we're thinking.

Okay. And then last one just longer term on EGR, my recollection was gas EGR had a pretty low penetration, single-digits, but my numbers are stale going back a few years ago. Where are you now or at least the industry is now with regards to adoption of EGR and gas?

Yeah, your recollection was right, Rich, it's – it's single-digit-type numbers, but we're finding it's starting to climb. So we're starting to see more quotes, more interest, and more applications. And so, I would say, it's pretty much in line with what we were at six months ago. And I would tell you the perspective is we feel good about win rates in that space. That's the other area I'm feeling pretty good about. So it's a climb up, Rich, from single-digits and it's just going on keep on climbing up over the period.

Is there a number by 2019 that we should think about as the....

We can get that for you, Rich.

(59:07).

Okay. That's fine.

(58:09) number.

All right, we'll take it offline.

We look at that.

Yeah. Thanks so much.

All right, thanks, Rich.

We have time for one final question. And that question comes from David Leiker with Baird. Joe D. Vruwink - Robert W. Baird & Co., Inc.: Okay. This is Joe Vruwink for David.

Good morning, Joe.

Hey, Joe. Joe D. Vruwink - Robert W. Baird & Co., Inc.: Morning. Just one question, one thing we hear a lot – and I think you guys have said in the past as well as when an automaker picks up the phone and is thinking about electrifying the powertrain, that first call is typically to the mechanical component supplier. And the question is, can you handle the electrical piece with the mechanical? It's not the inverse? Do you agree with that sentiment? And is that still accurate? It would seem like your current competitors that ultimately – even though you're typically butting up against five and six good suppliers. It would seem like that narrows even a bit more, because obviously the companies that can handle both are certainly fewer. Just your thoughts on both of those?

Yeah. I'll take a shot at that for you, Joe. I think the first and most important thing that's on the OEM's mind is to call the guy that understands the propulsion system and all that comes with that, the interface between engine and transmission and the vehicle. And I think it's fair to say a lot of that resident knowledge, expertise generally as a – in general, will start or lead with the mechanical – electromechanical aspects, but they absolutely want somebody to understand that, the electromechanical, the system, the power electronics, and the motor. And that makes us one of a few – a small group that can offer them that support and that capability. And the last point I would make, Joe, that's really important is they want to make that call whether it's a combustion propulsion, a hybrid, or a pure EV propulsion, because they want that partner to help determine with them what propulsion mix they should be working forward with (61:21). And that's definitely BorgWarner in our perspective over the last couple of years. Joe D. Vruwink - Robert W. Baird & Co., Inc.: Great. Thank you.

Thanks, Joe.

Thanks, Joe.

With that, I'd like to thank you all for your questions today and thank you for participating. Sharon, you can close the call.

That does conclude the BorgWarner 2017 first quarter results conference call. You may now disconnect.