BorgWarner - Comprehensive Analysis Report

Summary

BorgWarner Inc., established in 1928 and headquartered in Auburn Hills, Michigan, is a global automotive and e-mobility supplier. The company delivers technologies and solutions for combustion, hybrid, and electric vehicles, operating manufacturing facilities across Europe, the Americas, and Asia, supplying to major automotive OEMs globally. BorgWarner's mission is to deliver innovative and sustainable mobility solutions, with a vision for a clean, energy-efficient world. The company is strategically positioned to capitalize on the automotive industry's shift towards electrification.

1. Strategic Focus & Objectives

Core Objectives

BorgWarner's core objectives include accelerating the transition to eMobility, leading in clean and efficient propulsion systems, and achieving carbon neutrality by 2035. The company's "Charging Forward 2027" strategy aims to accelerate electrification and deliver sustainable solutions.

Specialization Areas

The company specializes in powertrain solutions, electrification components, and thermal systems.

Target Markets

BorgWarner targets the light vehicle, commercial vehicle, and off-highway application markets.

2. Financial Overview

BorgWarner generated $14.2 billion in net sales in 2023 and is targeting $14.4 billion to $14.9 billion for 2024. The company is aiming for EV revenue to reach approximately 50% of total sales by 2027. The company balances share buybacks with mergers and acquisitions (M&A) activities.

3. Product Pipeline

BorgWarner is focused on expanding its eProduct portfolio, which includes electric motors, power electronics, and other components for electric vehicles. The company has planned significant eProduct launch activities for 2025.

4. Technology & Innovation

Technology Stack

BorgWarner designs, develops, and manufactures engineered components and systems for vehicle powertrain applications.

Turbochargers
eBoosters
eTurbos
Emissions systems
Thermal systems
Gasoline ignition technology
Smart remote actuators
Powertrain sensors
Cabin heaters
Battery heaters
Control modules
Friction and mechanical clutch products
Torque-management products
Coupling systems
Chain systems
Variable camshaft phasing products
Inverters
Onboard chargers
DC/DC converters
Combination boxes
eMotors
Generators
Fully integrated drive modules
Electronic control units (ECUs)
Engine control units
Transmission control units
Battery management systems
Propulsion controllers
Domain controllers
Lithium-ion battery systems for bus, truck- and off-highway applications
DC fast chargers
NMC and LFP battery packs
Dual inverter technology for synchronous control of dual motors
Proprietary packaging technology for power modules

5. Leadership & Management

Executive Team

Joseph F. Fadool: President and Chief Executive Officer. Fadool has been with BorgWarner for 14 years and has served as President of four business units.
Alexis P. Michas: Non-Executive Chairman of the Board of Directors.
Tonit M. Calaway: Executive Vice President, Chief Administrative Officer, General Counsel and Secretary.
Paul Farrell: Executive Vice President and Chief Strategy Officer.
Tania Wingfield: Executive Vice President and Chief Human Resources Officer.
Stefan Demmerle: Vice President, President and General Manager, PowerDrive Systems.
Isabelle McKenzie: Vice President, President and General Manager, Drivetrain and Morse Systems.
Volker Weng: Vice President, President and General Manager, Turbos and Thermal Technologies.

Recent Leadership Changes

Joseph Fadool was appointed President and Chief Executive Officer, effective February 6, 2025, succeeding Frédéric Lissalde. Frédéric Lissalde retired from his role as President and CEO on February 6, 2025 and will serve in an advisory role until August 30, 2025.

6. Competitive Analysis

Major Competitors

Robert Bosch GmbH
ZF Friedrichshafen AG
Denso Corporation
Aisin Corporation
Magna International Inc.
Tesla (TSLA)
General Motors
Cummins
Valeo

7. Market Analysis

Market Overview

The automotive industry is undergoing a significant shift towards electrification. BorgWarner is strategically positioned to capitalize on this trend with its "Charging Forward" strategy and focus on eProducts. The company is targeting over $10 billion in EV revenue by 2027.

8. Strategic Partnerships

Manufacture 2030: Partnership to measure and reduce supply chain carbon footprint.
* Chinese OEM: Collaboration to supply dual inverters for hybrid vehicles.

9. Operational Insights

BorgWarner emphasizes lean manufacturing principles, supply chain optimization, and quality control across its facilities. The company actively manages its portfolio to align with its "Charging Forward" strategy and capitalize on the shift towards electrification.

10. Future Outlook

Strategic Roadmap

BorgWarner is focused on expanding its presence in the electric vehicle market and aims to increase electric vehicle revenues substantially, targeting over 45% of total revenue by 2027. BorgWarner is also focused on supply chain sustainability.