AUBURN HILLS, Mich.,
Nov. 9, 2010 /PRNewswire-FirstCall/
-- BorgWarner Inc. (NYSE: BWA) today 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. 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.
BorgWarner is a leading provider of 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.
"Improving fuel economy, lowering emissions and enhancing the
driving experience remain key objectives for auto makers 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% 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.
"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% 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."
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.
Auburn Hills, Michigan-based
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for vehicle powertrain
applications worldwide. The company operates manufacturing and
technical facilities in 60 locations in 18
countries. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler,
Fiat, BMW, Honda, John Deere, PSA, and MAN. The Internet address
for BorgWarner is: http://www.borgwarner.com.
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words such
as "outlook," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to risks
and uncertainties, many of which are difficult to predict and
generally beyond the control of the Company, that could cause
actual results to differ materially from those expressed, projected
or implied in or by the forward-looking statements. Such
risks and uncertainties include: fluctuations in domestic or
foreign automotive production, the continued use of outside
suppliers by original equipment manufacturers, fluctuations in
demand for vehicles containing the Company's products, general
economic conditions, as well as other risks detailed in the
Company's filings with the Securities and Exchange Commission,
including the Risk Factors identified in its most recently filed
annual report on Form 10-K. The Company does not undertake
any obligation to update any forward-looking statement.
SOURCE BorgWarner Inc.