BorgWarner predicts low- to mid-single-digit growth for the powertrain specialist in 2016. CEO James Verrier said this will come despite having to overcome challenges such as the fallout from Volkswagen Group’s emissions-cheating scandal and China’s slowdown. He explained why in a recent interview with Automotive News Europe Managing Editor Douglas A. Bolduc.
What is your vehicle production outlook for the major markets?
We expect vehicle production in the U.S. to grow moderately this year, but the market is showing signs of plateau. Europe is going along quite well. There is small but predictable growth. China is the most difficult to read because it doesn’t have the same level of transparent data as the more mature markets. Despite that we see low- to mid-single-digit growth there [down from double-digit growth in past years].
And for BorgWarner?
Overall we expect low- to mid-single-digit growth for the company in 2016. China will be our biggest growth region, but we also expect to grow in North America and we will do quite well in Europe.
What is holding you back?
The demand for our technology, quoting activity and our win rates remain strong. However, we are facing some headwinds, including the depressed commercial vehicle market, which accounts for about 12 percent of our sales, the slowdown in China’s growth and the challenges currently faced by Volkswagen Group, which accounts for about 15 percent of our business.