CHICAGO -- BorgWarner Inc. on Wednesday said it expects $1.6 billion in net new business from 2006 through 2008, with about 60 percent in engine-related products such as turbochargers.
The new business, much of which is aimed at improving fuel efficiency, is expanding most rapidly in the diesel car and truck markets, in emerging markets such as China, and with Japanese, Korean and European automakers, BorgWarner said.
About 40 percent of the new business is expected to come from transmission-related and all-wheel-drive products, the company said.
BorgWarner said growth in North America with both Japanese and domestic vehicle makers accounts for about 30 percent of the expected new business, Europe about 55 percent and Asia about 15 percent by the end of 2008.
Most large U.S. auto parts suppliers have struggled under selected output cuts in North America by Ford Motor Co. and General Motors, rising raw materials costs and pricing pressures from automakers.
The new engine-related business includes ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems, the company said.
BorgWarner Inc., of Auburn Hills, Mich., ranks No. 32 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $3.75 billion in 2004.