PARIS -- For many, BorgWarner’s name is synonymous with the internal-combustion engine, through the iconic Indianapolis 500 trophy and the supplier’s history of innovative transmissions and turbochargers.
But in the last few years, the Michigan-based company has been aggressively repositioning itself as a leader in electrification, through M&A activity and organic growth, as well as a planned spinoff of its fuel systems and aftermarket businesses.
"We are going to put all our energy into growing battery-electric vehicles and high-voltage plug-in hybrids, both for passenger cars and commercial vehicles," Frederic Lissalde, BorgWarner’s CEO since August 2018, told Automotive News Europe in an interview earlier this month in Paris, where he received an award from a French engineering society for his contributions to the automotive industry.
That focus is starting to pay off.
BorgWarner's 2022 revenue from electrification (primarily full-electric components) of about $850 million is expected to rise to $1.6 billion to $1.8 billion this year, Lissalde said. The goal under Lissalde’s Charging Forward strategy is to top $4.3 billion by 2025.
"Wherever the electrons go, from charging to moving the wheel, we want to have product differentiation and scale," Lissalde said.
BorgWarner is not alone among Tier 1 suppliers trying to pivot to electrification, in various ways.
ZF has halted new investment in internal-combustion drivetrains; Continental has spun off its electric powertrain business into Vitesco; Bosch is reshaping its industrial footprint.
BorgWarner’s available market for electric components is three times that of internal-combustion components, Lissalde said, meaning that if it could sell all the components it makes in each sector, the content per vehicle for an EV would be $2,600 but just $900 for internal combustion.