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BorgWarner anticipates $2.3B in new business 2011-2013, driven by demands for fuel efficiency in combustion engine powertrains

Powertrain component supplier BorgWarner Inc. announced $2.3 billion of expected net new powertrain business for 2011 through 2013, a 28% increase over its previous three-year net new business. The company expects demand for the company’s technologies related to fuel efficiency, such as gasoline and diesel turbochargers, dual-clutch transmission technology, engine timing systems and emissions products, to continue to drive strong growth.

Of the total new business, 77% 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% 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 remain key objectives for auto makers around the world. 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.

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

China represents nearly two-thirds of that new business as our sales to the world’s fastest growing market continue to accelerate. Approximately 25% of the anticipated new business over the three years is in the Americas, up from 20% in the previous three-year net new business.

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 customers of our three-year net new business include three commercial vehicle original equipment manufacturers. Approximately 15% of the expected new business is related to the commercial vehicle market.

—Timothy M. Manganello, Chairman and CEO

Advanced technology turbochargers account for about 32% of the company’s net new business, led by turbochargers for gasoline direct injected (GDI) 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. Europe will remain the largest market for gasoline turbochargers but North America will be the fastest growing one.

Another 13% 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 grow nearly 400% over the next five years to nearly 6 million units by 2015.



China will represent 2/3 of the advanced power trains business and the Americas will account for only 25%. Will this reversing trend become reality across the board? The world is changing so fast. Who would have guessed that we would have gone (relatively) down so quickly.

Many would say that's history repeating itself. Leading nations come and go. How will the majority accept the long (relative) downward trend ahead of us.

Will it be stabilized, stopped and reversed? Do we know how and do we have the wisdom and resolve to do it? Are we capable of weaning ourselves of the many acquired misconceptions and misdeeds that took us on that ill-fated path? Interesting decades ahead.


We'll see what happens to the world oil supply. As e.g. Saudi Arabia runs out of natural gas and has to burn crude to generate electricity and desalinate water, there's going to be less room for an expanding vehicle fleet everywhere, Chindia included.

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