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BorgWarner Inc. is a global leader in providing clean and efficient technology solutions for combustion, hybrid, and electric vehicles. The company primarily manufactures and sells products to original equipment manufacturers (OEMs) of light vehicles, including passenger cars, SUVs, vans, and light trucks, as well as to OEMs of commercial vehicles and off-highway vehicles such as agricultural and construction machinery . BorgWarner's business is organized into three main segments: Air Management, Drivetrain & Battery Systems, and ePropulsion . In 2023, the company's foundational products, which include all products used in internal combustion engines and hybrid powertrains, accounted for a significant portion of its total revenue, while its eProducts segment, used in electric vehicles and hybrid powertrains, represented approximately 14% of the total revenue . The company's strategy, known as "Charging Forward," aims to grow its eProducts segment significantly by 2027 .
- Air Management - Improves fuel economy, reduces emissions, and enhances performance with products such as turbochargers, emissions systems, and thermal systems.
- Drivetrain & Battery Systems - Includes battery modules, control modules, and torque-management products.
- ePropulsion - Provides technologies for electric and hybrid vehicles, including power electronics and rotating electric machines.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Joseph F. Fadool ExecutiveBoard | President and Chief Executive Officer | None | Joined BWA in 2010; previously EVP & COO; led Emissions, Thermal, and Turbo Systems; succeeded Frédéric B. Lissalde as CEO in February 2025. | View Report → |
Amy B. Kulikowski Executive | VP and Chief Accounting Officer | None | Joined BWA in March 2024; previously CAO at Cooper Standard Holdings; awarded stock and cash bonuses upon joining. | |
Craig D. Aaron Executive | Executive Vice President and Chief Financial Officer | None | Joined BWA in 2016; previously VP & Controller and VP & Treasurer; became CFO in March 2024. | |
Henk Vanthournout Executive | VP and President and General Manager, Battery and Charging Systems | None | Joined BWA in 2019; previously led Battery Systems and Drivetrain Systems Europe; now oversees Battery and Charging Systems. | |
Isabelle McKenzie Executive | VP and President and General Manager, Drivetrain and Morse Systems | None | Joined BWA in 2014; previously VP Global Engineering and General Manager for PowerDrive Systems Americas; leads drivetrain and Morse systems businesses. | |
Stefan Demmerle Executive | VP and President and General Manager, PowerDrive Systems | None | Joined BWA in 2015; leads ePropulsion segment; instrumental in advancing electrification technologies like 800-volt solutions. | |
Tania Wingfield Executive | EVP and Chief Human Resources Officer | None | Joined BWA in 2017; previously VP of Engineering and General Manager for North America Aftermarket; led HR initiatives recognized by Forbes. | |
Tonit M. Calaway Executive | EVP, Chief Administrative Officer, General Counsel, and Secretary | Board Member at Air Products and Chemicals, Inc.; Board Member at W.P. Carey Inc. | Joined BWA in 2016; previously EVP & Chief Human Resources Officer; key contributor to Charging Forward 2027 strategy and PHINIA spin-off. | |
Alexis P. Michas Board | Non-Executive Chair of the Board | Managing Partner at Juniper Investment Company; Non-Executive Chair at Revvity, Inc.; Director at AstroNova, Inc.; Director at Theragenics Corporation | Director since 1993; extensive private equity experience; expertise in M&A, IPOs, and global capital markets. | |
Deborah D. McWhinney Board | Director | Board Member at Franklin Templeton ETF Trust; Board Member at S&P Global Inc.; Director at LegalShield; Director at Fortress Net Lease REIT | Director since 2018; retired CEO of Global Enterprise Payments at Citigroup; expertise in financial services and cybersecurity. | |
Hau N. Thai-Tang Board | Director | Board Member at Bose Corporation | Appointed to the Board in 2023; former Chief Industrial Platform Officer at Ford; led development of key Ford vehicles like Mustang-E and F-150 Lightning. | |
Michael S. Hanley Board | Director | None | Director since 2016; retired Partner at Ernst & Young; extensive automotive and financial expertise; Chair of Audit Committee. | |
Sailaja K. Shankar Board | Director | None | Appointed to the Board in 2022; SVP and GM of Security Business Group at Cisco; recognized for cybersecurity expertise and diversity advocacy. | |
Sara A. Greenstein Board | Director | President and CEO of Axel Johnson Inc. | Director since 2021; former CEO of Lydall, Inc.; expertise in cybersecurity, sustainability, and governance. | |
Shaun E. McAlmont Board | Director | President and CEO of Ninjio, LLC; Board Member at Lee Enterprises, Inc.; Member of BYU Marriott School of Management National Advisory Council | Director since 2020; expertise in cybersecurity training, workforce development, and education; former NCAA athlete. |
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In the battery and charging segment, you achieved a 36% sales increase and are near breakeven margins. With capacity now aligned to demand in North America and Europe, what specific strategies will you implement to drive margin improvement to mid to high teens over time?
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Your growth over market assumption for 2024 has been lowered from 350-450 basis points to 200-300 basis points, with approximately $200 million drop in growth, half from the eProduct portfolio. What are the primary challenges causing this reduction, and how do you plan to mitigate them to regain higher growth levels?
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You have initiated restructuring in the PDS segment with $20-30 million in cost reductions this year and a target of $100 million by 2026. Can you elaborate on the specific structural changes being made and how they will contribute to your goal of incrementing income in the mid-teens?
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Considering potential regulatory changes, especially with the upcoming U.S. elections affecting CO₂ requirements, how is BorgWarner preparing to adapt its product offerings and strategy to meet varying customer demands for combustion, hybrid, and electric powertrains?
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With $525 million of cash generation being returned to shareholders this year through buybacks and dividends, how do you plan to balance shareholder returns with necessary investments in capital expenditures and R&D to support your electrification and growth initiatives in the coming years?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Robert Bosch GmbH | The company is identified as a major non-OEM competitor in the global market for manufacturing and distributing similar products, competing on factors such as technological innovation, application engineering development, quality, price, delivery, and program launch support. |
The company is listed as a significant non-OEM competitor in the global market, competing with similar products and leveraging factors like technological innovation and quality. | |
The company is mentioned as a key non-OEM competitor in the global market for similar products, competing on aspects such as price and technological innovation. | |
Hitachi, Ltd. | The company is noted as a major non-OEM competitor in the global market, competing with similar products and focusing on factors like quality and program launch support. |
Magna Powertrain | An operating unit of Magna International Inc., this company is identified as a significant non-OEM competitor in the global market for similar products. |
Valeo | The company is recognized as a major non-OEM competitor in the global market, competing on factors such as delivery and application engineering development. |
Schaeffler Group | The company is listed as a significant non-OEM competitor in the global market, competing with similar products and leveraging factors like technological innovation and quality. |
Contemporary Amperex Technology Co., Limited | The company is mentioned as a major non-OEM competitor in the global market, competing in areas such as electrification and technological innovation. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Ford | Major OEM client for automotive components. | All | 13% of consolidated net sales in 2024. |
Volkswagen | Major OEM client for automotive components. | All | 10% of consolidated net sales in 2024. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Electric Hybrid Systems (EHS) – Eldor Corp | 2023 | BorgWarner announced the acquisition of Eldor’s EHS segment on June 19, 2023, for an upfront purchase price of €75 million with up to €175 million in contingent payments. The deal enhances its ePropulsion portfolio by adding high-voltage power electronics capabilities (400V/800V chargers and DC/DC converters) and includes the acquisition of over 100 engineers, two facilities, and significant R&D investments. |
Hubei Surpass Sun Electric (SSE) | 2023 | Completed on March 1, 2023, the acquisition was valued at £288 million ($42 million), structured with a base purchase price and installment payments, along with earn-outs tied to performance metrics. This acquisition supports BorgWarner’s strategy to strengthen its electrification portfolio and expand its charging footprint into the Chinese market. |
Rhombus Energy Solutions | 2022 | Completed on July 29, 2022, the acquisition involved an upfront payment of $131 million with potential earn-out payments of up to $30 million plus additional retention-related earn-outs. This move is intended to complement BorgWarner's European charging presence while bolstering its North American fast-charging business. |
Santroll Automotive Components | 2022 | Finalized on March 31, 2022, the acquisition was valued at $207 million (including working capital and net debt adjustments) with earn-out provisions up to approximately $47 million. The deal is aimed at enhancing vertical integration and broadening BorgWarner's eMotor capabilities, with expected revenue synergies contributing significantly by 2025. |
Recent press releases and 8-K filings for BWA.
- BorgWarner highlighted its balanced powertrain portfolio that successfully integrates ICE and EV technologies, built through strategic acquisitions over the past decade.
- The company showcased operational resilience with cost control initiatives that expanded margins by 50 basis points on flat sales in 2024.
- Management outlined a disciplined M&A strategy focused on leveraging core competencies, achieving near-term accretion, and maintaining a strong balance sheet with targeted liquidity and leverage levels.