BorgWarner says it expects US$2.5bn of net new powertrain business from 2012 to 2014, a 9% increase compared to its previous three-year net new business.
Demand for the company’s environmentally friendly 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.
“Improving fuel economy, lowering emissions and enhancing the driving experience
remain key objectives for auto makers around the world,” said chairman and CEO Timothy Manganello. “BorgWarner is positioned among vehicle suppliers to deliver powertrain technologies in a broad range of products that address these needs.
“Over the next three years, 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, around 80% is anticipated from engine-related products
such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems.
“We have significantly outpaced the growth of the industry by developing fuel-efficient technologies that meet the needs of the global market,” added Manganello. “We expect this trend to continue. The European market remains the leader in the adoption of new powertrain technology and Europe accounts for 45% of our expected new business.
“New business sales in Asia are expected to account for about 35% of the total by the end of the period, including 22% in China as our sales to the world’s fastest growing market continue to accelerate. The top 25 customers of our three-year net new business include eight Chinese domestic original equipment manufacturers. Approximately 20% of the anticipated new business over the three years is in the Americas.”
Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner.
Turbochargers account for around 50% of the company’s net new business, with strong growth in the commercial vehicle, diesel passenger car and gasoline passenger car markets.
Turbo-charging 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 around 50% during the next five years, from nearly 29m units today to more than 43m by 2016.