Question-and-Answer Session
Operator
(Operator Instructions)
The first question is from Rich Kwas with Wachovia.
Rich Kwas - Wachovia
Hi. Good afternoon.
Tim Manganello
Hi, Rich.
Rich Kwas - Wachovia
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?
Tim Manganello
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.
Rich Kwas - Wachovia
Okay. Could you remind us what you are assuming for European production for 2008?
Tim Manganello
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.
Rich Kwas - Wachovia
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?
Tim Manganello
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.
Rich Kwas - Wachovia
Okay. And then finally, Robin, what should we be assuming for the tax rate 2008?
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