BorgWarner Inc. expects $2.3 billion of net new powertrain business for 2013 through 2015. Demand for the company's advanced powertrain technologies, including gasoline and diesel turbochargers; dual-clutch transmission technology; engine timing systems; and emissions products, is expected to continue to drive strong growth.
Of the total new business, approximately 80% is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The remaining approximate 20% 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.
|“Improving fuel economy, lowering emissions and enhancing the driving experience are
increasingly important strategic initiatives for automakers around the world.”|
—Timothy M. Manganello
The European market accounts for 30% of the expected new business compared with 45% in the previous three-year net new business, noted Timothy M. Manganello, Chairman and CEO. While Europe remains a leader in the adoption of new powertrain technology, the general economic slowdown in the region has reset volume expectations in that market. However, new business sales in Asia is expected to account for about 50% of the total by the end of the period compared with 35% in the previous three-year net new business, Manganello said.
Approximately 32% of our expected new business is in China. The top twenty-five customers of the three-year net new business include seven Chinese domestic OEMs. Approximately 20% of the anticipated new business over the three years is in the Americas including 11% with the North American domestic OEMs.
Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner. The top twenty-five customers of our three-year net new business include six commercial vehicle OEMs. Approximately 19% of the expected new business is related to the commercial vehicle market.—Tim Manganello
Turbochargers account for about 50% of the company’s net new business, with growth in the commercial vehicle, diesel passenger car and gasoline passenger car markets. Turbocharging is a key strategy employed by vehicle manufacturers to address the issues of fuel efficiency and emissions reduction while maintaining vehicle performance. The market for turbochargers is expected to grow approximately 50% over the next five years, from approximately 32 million units today to nearly 50 million by 2017.
Another 11% of the new business is tied to the company’s dual-clutch technology. The technology provides the fuel-efficiency and fun-to-drive characteristics of a manual transmission with the convenience and smooth shifting of an automatic. The number of dual-clutch transmissions in the market is expected to more than double over the next five years to approximately 9 million units by 2017.