BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles. The company manufactures and sells its products worldwide, primarily to original equipment manufacturers (OEMs) of light vehicles, commercial vehicles, and off-highway vehicles. BorgWarner's products help improve vehicle performance, propulsion efficiency, stability, and air quality. The company has manufacturing facilities in Europe, the Americas, and Asia and is an original equipment supplier to nearly every major automotive OEM in the world. BorgWarner's strategy focuses on growing its eProducts portfolio through organic investments and technology-focused acquisitions, while maximizing the value of its Foundational products portfolio. The company believes it is well positioned for the industry's anticipated migration to EVs.

• Employees: 39,900 (as of December 31, 2023)
• Geographic Footprint: Europe, the Americas, and Asia
• Headquarters: Auburn Hills, Michigan
• Founded: 1987
• Number of locations/facilities: 82 manufacturing, assembly, and technical locations
• Revenue: $14.2 billion (FY2023)
• Key Subsidiaries/Brands: Eldor Corporation, Hubei Surpass Sun Electric, Drivetek AG, Rhombus Energy Solutions, Santroll Automotive Components, AKASOL AG

• CEO: Frederic B. Lissalde
• CFO: Craig D. Aaron (effective March 1, 2024)
• Chief Administrative Officer, General Counsel and Secretary: Tonit M. Calaway
• Chief Human Resources Officer: Tania Wingfield
• Chief Strategy Officer: Paul A. Farrell

Key leaders have extensive experience in the automotive and technology industries.

• Annual Revenue: $14.2 billion (FY2023)
• Net Earnings: $695 million
• Total Assets: $14.5 billion
• Key Financial Highlights: eProduct revenue was approximately $2.0 billion, or 14% of total revenue in FY2023.

BorgWarner's products are categorized into eProducts and Foundational products.

• eProducts: Include all products utilized on or for electric vehicles (EVs), plus those same products and components that are included in hybrid powertrains. Examples include power electronics, rotating electric machines, and electronic controls.
• Foundational Products: Include all products utilized on internal combustion engines plus those same products and components that are also included in hybrid powertrains. Examples include turbochargers, timing systems, emissions systems, and thermal systems.

The Company reports its results under three reportable segments:

• Air Management: Develops and manufactures products to improve fuel economy, reduce emissions and enhance performance.
• Drivetrain & Battery Systems: Technologies include battery modules and systems, control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems.
• ePropulsion: Products and technologies provide industry-leading performance and efficiency with quick-to-market solutions powering current and next-generation electric and hybrid vehicles.

Net sales by reportable segment were as follows: Air Management: $7.8 billion, Drivetrain & Battery Systems: $4.3 billion, ePropulsion: $2.2 billion (FY2023).

BorgWarner's strategy focuses on profitably growing its eProducts portfolio while maximizing the value of its Foundational products portfolio. Key strategic initiatives include organic investments, technology-focused acquisitions, and leveraging its technology capabilities to enhance its customer base and geographic representation. The company expects to achieve over $10 billion in annual eProduct sales by 2027.

BorgWarner competes with a number of other manufacturers and distributors that produce and sell similar products. Major competitors include Robert Bosch GmbH, Denso Corporation, Garrett Motion, Hitachi, Ltd., Magna Powertrain, Valeo, Schaeffler Group and Vitesco Technologies. The company also competes with certain start-ups in electrification.

• Market Position: A global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles.
• Key Competitors: Robert Bosch GmbH, Denso Corporation, Garrett Motion, Hitachi, Ltd., Magna Powertrain, Valeo, Schaeffler Group and Vitesco Technologies.
• Industry Trends: The automotive industry is increasingly focused on improved vehicle efficiency and reduced emissions, including the development of hybrid and electric vehicles, and of advanced driver-assistance technologies.

• Strategic Risks: The company's Charging Forward strategy may not be successful, and acquisitions may not achieve expected benefits.
• Industry Risks: Conditions in the automotive industry may adversely affect the business, and the company faces strong competition.
• Operational Risks: The company is under substantial pressure from OEMs to reduce prices, faces volatile costs of commodities, and is subject to business continuity risks associated with increasing centralization of IT systems.
• Financial Risks: Changes in interest rates and asset returns could increase pension funding obligations, and a downgrade in the ratings of the company's debt could restrict access to the debt capital markets.
• Regulatory Risks: The company is subject to extensive environmental regulations, and may be subject to potential governmental investigations and related proceedings relating to vehicle emissions standards.