BorgWarner Inc. is eyeing acquisitions to boost its fast-growing diesel business, chairman and chief executive Tim Manganello reportedly said.

Reuters said the company, which makes engine and drive train systems, has ridden a wave of strong demand in Europe for diesel engines that use its turbochargers.

“I think turbochargers in diesel engines or turbochargers in direct injection gasoline engines are a good place to be right now, no matter what part of the world you are in,” Manganello told the Reuters Autos and Manufacturing Summit in Detroit.

“A new technology or acquisition…that drives that diesel growth rate, that would be something that we would consider,” he said when asked about potential deals.

Manganello reportedly said BorgWarner would consider deals to fill gaps in technology or geography or to expand business with a customer.

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A wave of consolidation has already cut sharply into the number of suppliers in recent years, Reuters noted. Neil De Koker, president of the Original Equipment Suppliers Association, said that the number of parts suppliers is likely to dwindle to 5,000 from about 10,000 at the start of the decade.

BorgWarner looks for acquisitions that can add a dimension to existing products, such as new technology, Manganello told the news agency.

“We have done a very good job as a company in riding technology waves,” he said, referring to four-wheel-drive technology when pickup truck and sport utility vehicle sales took off in North America in the 1990s.

Asia may be the next frontier for diesel engines, and therefore turbochargers, Manganello told Reuters. In particular, South Korea has recently adopted European emission standards, and China eventually will end up with those standards, he said.

It is a matter of time before diesel engines come to the US market, though smaller direct-injection turbocharged petrol engines likely will kick in before diesels, he said.

According to Reuters, Manganello said BorgWarner earns about half its sales from the big three US automakers and the rest from outside North America. The portion from outside North America is likely to rise to about 60% of the total in a couple of years, he reportedly added.