U.S. auto supplier BorgWarner Inc plans to cut up to 1,250 jobs in the United States -- 250 more than previously planned -- in response to production cutbacks by the automakers it supplies, the company's chief executive said on Friday.



BorgWarner Chief Executive Tim Manganello told Reuters the jobs cuts were part of an effort to prepare the supplier for a still-developing industry slump that would represent '18 months of bad road' stretching into 2010.



The layoffs represent about 20 percent of BorgWarner's North American work force and mark an increase from the 1,000 job cuts the Auburn Hills, Michigan-based supplier had announced in July.



Manganello also said BorgWarner was in 'active' talks to acquire other auto suppliers and searching Europe for deals for firms that could boost the company's offering of technology in fuel-efficiency and emissions.



By doing so, Manganello said BorgWarner could take advantage of its relatively strong cash position and an industry slump compounded by an ongoing credit crunch that is driving other companies from the auto supply business.



'I can tell you right now we are actively engaged in conversations with some companies. As a buyer, this is a fairly opportunistic time to buy,' Manganello said.



'We're a very cash-rich supplier. we're very healthy financially and we have no credit problems at all,' he added.



BorgWarner's cash and liquid assets totaled $1.81 billion by the end of June, up from $1.58 billion at the end of 2007.