Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Suppliers
December 06, 2022 09:00 AM

BorgWarner accelerates EV focus with spinoff plan

BorgWarner will focus on electric drive systems and new combustion technologies, with fuel systems and aftermarket becoming a separately listed company.

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Borgwarner-MAIN.jpg

    BorgWarner said it planned to spin off its fuel systems and aftermarket segments into a separate, publicly traded company.

    After the spinoff is complete, BorgWarner would consist of the e-Propulsion & Drivetrain and Air Management segments.

    "The intended separation of our Fuel Systems and Aftermarket segments would be an important next step to further our pivot to EVs," CEO Frederic Lissalde said in a news release Tuesday.

    BorgWarner added it believes the company would "ultimately achieve or exceed" its stated target of 25 percent of revenue from electric vehicles by 2025.

    Shareholders would receive shares in the new, as yet unnamed company on a pro-rata basis. CFO Kevin Nowlan said BorgWarner hoped to complete the spinoff by the end of 2023.

    Lissalde told analysts in a conference call on Tuesday that the separations was consistent with BorgWarner's strategic plan, which called for the disposition of up to $4 billion in assets by 2025. 

    He said that the Fuel System and Aftermarket units "would not have been prioritized under the BorgWarner umbrella, given the focus on prioritizing electrification."

    "Both businesses are very strong and have great momentum," he said. "It's time to focus on accelerating the EV business even further." 

    A number of other suppliers have recently spun off or divested units considered to be "noncore" in order to focus on future technologies such as electrification and autonomous vehicles. 

    In one recent high-profile transaction, Delphi Automotive, the former GM supplier division, divested its powertrain unit in December 2017 as Delphi Technologies and renamed itself Aptiv.

    BorgWarner bought Delphi Technologies in a 2020 deal that valued Delphi at about $3.3 billion.  

    BorgWarner, based in Auburn Hills, Michigan, ranked 15th on the Automotive News list of top 100 global suppliers, with 2021 sales to automakers of $13.99 billion. 

    Its main products are electric drive modules, electric motors, turbochargers, high-voltage heaters and inverters.

    Through the first nine months of 2022, BorgWarner's Air Management segment generated revenue of about $5.5 billion and adjusted operating margin of 13.7 percent, BorgWarner said, while the e-Propulsion and Drivetrain segment generated revenue of about $3.9 billion and adjusted operating margin of 6.9 percent.

    In the same period, Fuel Systems segment generated revenue of approximately $1.7 billion, with an adjusted operating margin of 11.3 percent, the supplier said, while the Aftermarket segment generated revenue of just under $1.0 billion and adjusted operating margin of 14.5 percent.

    Reuters contributed to this report

    RECOMMENDED FOR YOU
    Bosch earnings rose 16% in 2022; higher costs slow margin growth
    Recommended for You
    Bosch badge
    Bosch earnings rose 16% in 2022; higher costs slow margin growth
    Britishvolt jacket logo
    Insolvent Britishvolt receives two bids, report says
    391462266(1).gif
    CATL aims to raise $5B in Swiss listing to fund Europe expansion, report says
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us