USA: BorgWarner expects $US1.2 billion of new powertrain business from 2003 to 2005
BorgWarner is expecting $US1.2 billion of new powertrain business for 2003 to the end of 2005.
Approximately half of the business is major programmes with Volkswagen, Honda, General Motors and Hyundai.
More than 50% of the new business is anticipated to be engine-related, another 29% is expected in transmission components, with the remaining 19% in four-wheel/all-wheel drive systems.
BorgWarner president and CEO Timothy Manganello said that the growth in the company's new business is up about 10% over the previous three-year period, and is in line with the company's long-term sales growth target of 8% to 11%.
He also noted that by 2005, more than 50% of the company's sales will come from non "Big Three" car makers.
BorgWarner said it was "significant" that 47% of its expected new business was in Europe, and described the continent as its fastest growing market, driven by the need for more fuel-efficient engine and transmission technology.
In North America, BorgWarner new business is tied to Asian automakers and General Motors.
"Because of this global diversity, we believe that our strong internal growth can outpace that of our industry, even if car production is flat or down," the company said in a statement
The anticipated new business over the coming three-year period reflects continued strength in engine products, the expansion of the four-wheel drive business and the first business for innovative transmission technology beginning in 2003.
Customer programmes during the 2003 to 2005 period are anticipated to include:
-- Chain-driven timing systems for Honda, Nissan and Hyundai in North America and Asia
-- Electronic all-wheel drive for Hyundai and Honda for use in North America
-- Four-wheel drive systems for five GM programmes
-- Variable cam timing for North America
-- DualTronic transmission technology for three European makers
-- Next generation turbochargers in Europe for VW, Renault, PSA
Over the three years, new business programmes are expected to yield approximately $300 million in sales in 2003, with $450 million each in sales anticipated in 2004 and 2005.