Auto component major BorgWarner aims to grow EV revenues to 45% by 2030
As part of its Project Charging Forward, the company will invest to further expand electrification portfolio through organic and inorganic growth. It has also announced commitment to achieve carbon neutrality by 2035.
Auburn Hills, Michigan (USA), March 23, 2021
As part of its Project Charging Forward, BorgWarner Inc - a global auto component player offering clean and efficient technology solutions for combustion, hybrid and electric vehicles (EV) - aims to grow the company’s electric vehicle revenue from less than 3 per cent of total revenues at present to approximately 45 per cent in 2030. Project Charging Forward represents an acceleration of BorgWarner’s electrification strategy.
Frédéric Lissalde, President and CEO of BorgWarner, said, “Our company’s 100-plus year history is a story of evolution, built on superior product leadership, an agile, decentralised operating model and disciplined financial and operational management. As we plan for the next decade-plus of profitable growth, now is the time to move away from a balanced propulsion strategy and accelerate our shift towards electrification. We believe the electrification opportunity is real, large, near term and important to our sustainability goals. We’ve been building toward capitalizing on this opportunity for years and are confident we have the scale, portfolio, financial strength and team to execute successfully.”
At the Investor Day event on March 23, 2021, BorgWarner provided insights into the company's acceleration of its positioning and outlook in an electrified world.
Project Charging Forward plan comprises three pillars: profitably scaling electric light vehicles, expanding into electric commercial vehicles and optimising the company’s combustion portfolio through the planned dispositions of businesses with between $3 billion and $4 billion in aggregate revenue. The company also announced decentralised organisational structure, system and component offerings, scale to deliver and commercialise innovative technology, and award-winning teams that the company believes are its competitive advantages to capitalise on its electrification initiatives. BorgWarner will continue to focus on sustaining top-quartile, double-digit margin performance while significantly evolving its business mix.
The company expects to generate approximately $4.5 billion in free cash flow between 2021 and 2025 (before acquisitions and dispositions), contributing, along with an investment-grade balance sheet and additional capital from planned combustion dispositions, to capital available for accelerating electric vehicle positioning through M&A and organic investments. BorgWarner plans to maintain its vision of a clean and energy-efficient world, including a commitment to achieving carbon neutrality by 2035.