US: BorgWarner hails $2.3bn of new powertrain business
BorgWarner has announced US$2.3bn of expected net new powertrain business for 2013 through 2015. It says demand for the company's advanced powertrain technologies, such as gasoline and diesel turbochargers, dual-clutch transmission technology, engine timing systems and emissions products, is expected to continue to drive strong growth.
The company adds that its new business is sourced around the globe and includes programs with nearly every major automaker in the world.
"Improving fuel economy, lowering emissions and enhancing the driving experience are increasingly important strategic initiatives for automakers around the world," said Timothy M. Manganello, Chairman and Chief Executive Officer. "BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies that help automakers meet these objectives. We believe our fuel-efficient technologies will be in high demand as the industry continues to implement advanced powertrain strategies."
Of the total new business, approximately 80% is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The remaining approximate 20% is expected from drivetrain-related products including the company's fuel-efficient DualTronic transmission technology and its traditional automatic transmission and all-wheel drive technologies.
"We have outpaced the growth of the industry by developing fuel-efficient technologies that meet the needs of the global market," Manganello continued. "We expect this trend to continue. The European market accounts for 30% of our expected new business compared with 45% in the previous three-year net new business. Europe remains a leader in the adoption of new powertrain technology, however the general economic slowdown in the region has reset volume expectations in that market. New business sales in Asia are expected to account for about 50% of the total by the end of the period compared with 35% in the previous three-year net new business. Approximately 32% of our expected new business is in China as our sales to the world's fastest growing market continue to accelerate. The top twenty-five customers of our three-year net new business include seven Chinese domestic original equipment manufacturers ("OEMs"). Approximately 20% of the anticipated new business over the three years is in the Americas including 11% with the North American domestic OEMs."
"Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner. The top twenty-five customers of our three-year net new business include six commercial vehicle OEMs. Approximately 19% of the expected new business is related to the commercial vehicle market."
Turbochargers account for about 50% of the company's net new business, with growth in the commercial vehicle, diesel passenger car and gasoline passenger car markets. Turbocharging is a key strategy employed by vehicle manufacturers to address the issues of fuel efficiency and emissions reduction while maintaining vehicle performance. The market for turbochargers is expected to grow approximately 50% over the next five years, from approximately 32 million units today to nearly 50 million by 2017, says BW.
Another 11% of the new business is tied to the company's dual-clutch technology. The technology provides the fuel-efficiency and fun-to-drive characteristics of a manual transmission with the convenience and smooth shifting of an automatic. The number of dual-clutch transmissions in the market is expected to more than double over the next five years to approximately 9 million units by 2017, BMW maintains.
This QUBE report from just-auto provides a comprehensive overview of the global automotive ignitions sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this repo...
This QUBE report from just-auto provides a comprehensive overview of the global automotive turbocharger sector, major suppliers, top markets, technology trends and market size forecasts. Use this repo...
There were more financial results out this week and it was another mixed bag. General Motors' latest black ink was, overall, good. It's still making big profits, mainly based on healthy North American...
LMC Automotive's service provides customers with the very latest monthly estimates of passenger car production across all of Europe. Updated monthly and provided model-by-model, and available only via...
New to QUBE in the last quarter, this report has been extracted from QUBE and provides a comprehensive overview of the global light vehicle Engine technologies sector, major suppliers, top markets, te...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
- VEHICLE ANALYSIS: Porsche Cayenne S E-Hybrid
- THE WEEK THAT WAS: Ship shape and not too bent
- ASEAN vehicle market down almost 10% in 2014
- What now for docked Hoegh Osaka cargo?
- RESEARCH ANALYSIS: Review of instrumentation
- JLR recreates 1948 line for Defender plant tour
- Most cars unscathed by Osaka drama: ship owner
- Ford 2014 operating profit plunges $2.3bn
- "Bumps and dents" for some driveable Hoegh cars
- GENEVA DEBUTS: Opel Corsa OPC & VW Golf GTD estate