BorgWarner Expects Turbo Sales Growth

Nov 10, 2010

BorgWarner Inc., Auburn Hills, Mich., has announced $2.3 billion of expected net new powertrain business for 2011 through 2013, a 28-percent increase over its previous three-year net new business.

Demand for the company’s environmentally friendly technologies, such as gasoline and diesel turbochargers, dual-clutch transmission technology, engine timing systems and emissions products, is expected to continue to drive strong growth, according to a press release issued by the company.

BorgWarner offers highly engineered engine and drivetrain components and systems that help improve fuel efficiency, air quality and vehicle performance. The company’s new business is sourced around the globe and includes programs with nearly every major automaker in the world, the release noted.

“Improving fuel economy, lowering emissions and enhancing the driving experience remain key objectives for automakers around the world,” said Timothy M. Manganello, chairman and chief executive officer. “BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies in a broad range of products that address these needs. Over the next three years, we believe our fuel-efficient technologies will be in high demand as the industry continues to implement advanced powertrain strategies.”

Of the total new business, 77 percent is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The other 23 percent is expected from drivetrain-related products including the company’s fuel-efficient DualTronic transmission technology and its traditional automatic transmission and all-wheel drive technologies, according to the release.

“We have significantly outpaced the growth of the industry by developing fuel-efficient technologies that meet the needs of the global market,” Manganello continued. “We expect this trend to continue. The European market remains the leader in the adoption of new powertrain technology and Europe accounts for 45 percent of our expected new business. As our expansion in Asia continues, new business sales are expected to account for about 30 percent of the total in that region by the end of the period.”

Turbochargers account for about 32 percent of the company’s net new business, led by turbochargers for gasoline direct-injected engines. Turbocharging GDI engines is a key strategy employed by automakers to address the issues of fuel efficiency and emissions reduction while maintaining vehicle performance.

The market for gasoline engine turbochargers is expected to nearly triple over the next five years, from about 3.5 million units today to over 10 million by 2015, according to the company.