BorgWarner has announced US$1.6bn of expected net new powertrain business for 2006 to the end of 2008, providing growth anticipated to outpace that of the vehicle industry.
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The company’s new business is expanding most rapidly in the diesel car and truck markets, in emerging markets like China, and with Japanese, Korean and European car makers.
About 60% of the new business is expected to be in engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The other 40% is expected in transmission modules and all-wheel drive systems, including the company’s fuel-efficient DualTronic transmission technology (called Direct Shift Gearbox or DSG in the VW group vehicles in which it made its debut), and electronic InterActive Torque Management systems.
“With the rise in world fuel prices, BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies, in a broad range of products, that address fuel economy,” said chairman and chief executive officer Timothy Manganello, as he presented the new business outlook at an automotive industry gathering in the US.
“We believe, over the next three years, our fuel-efficient technology will clearly be a strong growth catalyst for new business as we continue to serve the needs of our global customer base. With the addition of Beru, we have strengthened our technology even further, particularly in the expanding diesel market and electronic controls area.”
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By GlobalDataManganello said that the anticipated growth in BorgWarner’s new business, as well as volume increases in existing business, positions the company to continue to deliver growth consistent with its past track record.
“As auto production growth shifts away from developed economies, our new business is expected to provide balanced growth around the world,” added Manganello.
“Growth in North America with both the Japanese and domestic vehicle makers accounts for approximately 30% of the anticipated new business over the three years. Europe accounts for 55% of our expected new business. As our expansion in Asia continues, sales there are expected to account for about 15% of our new business by the end of the period,” he said.
The company expects noteworthy new business during the 2006 through 2008 period to include:
Engine Group: Next generation passenger car turbochargers for a number of European OEMs;
Advanced turbochargers for light truck programmes in North America and commercial vehicle programmes in Europe and North America;
Emissions products for a variety of applications and for an expanding customer base;
Thermal systems for a variety of commercial and light truck applications, including diesel pickups in North America;
Chain-driven timing systems for North American, European and Asian OEMs;
Variable cam timing for North American and European OEMs;
Beru’s Tyre Safety and Instant Start systems for various OEMs.
Drivetrain Group: DualTronic [aka DSG] transmission technology for four European programmes that moves the technology further into the mainstream of high volume mid-market vehicles as well as up-scale luxury applications;
Transmission shifting assemblies and controls for new North American six-speed transmissions, and for transmissions used on hybrid vehicles;
Electronic all-wheel drive for a major North American OEM and for Korean, Japanese and Chinese OEMs;
Four-wheel drive systems for a number of major global OEMs.
