BorgWarner picks Verrier to succeed Manganello as CEO
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BorgWarner CFO Ron Hundzinski, left, and James Verrier, who becomes CEO on Jan. 1, have big shoes to fill, one analyst wrote today. |
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DETROIT -- BorgWarner Inc. named James Verrier as CEO, succeeding Tim Manganello after 10 years at the helm of the powertrain technology supplier.
The move is effective Jan. 1. BorgWarner signaled its succession plan in March when it named Verrier, 49, to the newly created position of president and COO.
Manganello, 62, will remain executive chairman until he retires in April, the company said in a statement today.
Alexis Michas, currently lead director, will become non-executive chairman after Manganello's retirement.
BorgWarner, whichi makes a variety of energy efficient components such as dual-clutch transmissions and turbochargers, in March also named Ron Hundzinski as its new CFO, succeeding Robin Adams.
Manganello was named CEO on Feb. 5, 2003, when BorgWarner stock closed at $13.76. The stock has more than quadrupled under his tenure, closing Wednesday at $61.43, while sales more than doubled. Following the announcement, BorgWarner shares closed up almost 1 percent today at $61.94 while the Dow Jones industrial average fell 0.2 percent.
"The Manganello/Adams tandem was tremendously successful both operationally and financially and both men were well respected by the investment community," Wells Fargo analyst Rich Kwas wrote today.
"The Verrier/Hundzinski team is filling big shoes, in our view. Inevitably, comparisons will be made by investors on a go-forward basis. In our view, the new tandem is well positioned to succeed although it may take some time for them to make their mark with investors."
Verrier is taking command as BorgWarner faces lessened demand in Europe, where it generates about half of its business, according to the Automotive News Data Center. Vehicle sales in the region are headed to the lowest level in 19 years because of the sovereign-debt crisis.
BorgWarner has been helped longer-term by demand for turbochargers, which boost fuel economy.
Verrier has been with BorgWarner for 23 years. His prior positions have included vice president of BorgWarner's turbo systems and passenger car products based in Germany.
BorgWarner, based in suburban Detroit, ranks No. 27 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $7.11 billion in 2011.
Bloomberg contributed to this report.
PRESS RELEASE: BorgWarner Appoints James R. Verrier Chief Executive Officer
BorgWarner Appoints James R. Verrier Chief Executive Officer Current CEO Timothy M. Manganello to Retire after 32 Year Career with BorgWarner
AUBURN HILLS, Mich., Nov. 15, 2012 /PRNewswire/ -- The BorgWarner (NYSE: BWA) Board of Directors today announced the appointment of James R. Verrier, 49, to president and chief executive officer effective January 1, 2013, at which time he will also join the Board of Directors. Effective on the same date, current chairman and chief executive officer, Timothy M. Manganello, 62, will continue as executive chairman of the company until his planned retirement at the April 24, 2013 annual meeting, at which time he will step down from the Board. The Board also announced that at the time of Manganello's retirement, the company's present lead director, Alexis P. Michas, will become non-executive chairman.
Verrier has held positions of increasing responsibility during his 23 years with the company. He currently serves as president and chief operating officer. Previous positions include president and general manager BorgWarner Morse TEC and vice president and general manager BorgWarner Turbo Systems, passenger car products based in Germany.
"I am very proud of what we have accomplished over the past ten years. However, I feel now is the right time to turn over the leadership of the company. James is a proven leader who will continue to motivate our teams to deliver results. Under James' watch, I foresee continued success by BorgWarner for many years to come," said Timothy M. Manganello, Chairman and CEO. "Most importantly, I want to thank all the BorgWarner employees and our Directors for making my career at BorgWarner very enjoyable."
"We have been consistently impressed with Tim's leadership, his focus on technology and the industry leading performance of the company during Tim's ten years as the CEO," said Alexis P. Michas, lead director of the company. "The transformation that has occurred in those years is remarkable. Sales have grown to over $7 billion, market cap has increased over six times since 2003, and the company achieved regional and customer diversification that is the envy of its peers. Tim led BorgWarner to the ranks of a premier auto supplier, earned the respect of the global industry, and has positioned the company well for continued growth. We thank Tim for his valuable contributions and unmatched dedication."
About BorgWarner
Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a technology leader in highly engineered components and systems for powertrain applications worldwide. Operating manufacturing and technical facilities in 57 locations in 19 countries, the company develops products to improve fuel economy, reduce emissions and enhance performance. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN. For more information, please visit www.borgwarner.com
Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "initiative," "intends," "outlook," "plans," "potential," "project," "pursue," "seek," "should," "target," "when," "would," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. Such risks and uncertainties include: fluctuations in domestic or foreign vehicle production, the continued use by original equipment manufacturers of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, as well as other risks noted reports that we file with the Securities and Exchange Commission, including the Risk Factors identified in our most recently filed Annual Report on Form 10-K. We do not undertake any obligation to update or announce publicly any updates to or revision to any of the forward-looking statements.
