Auburn Hills, Michigan (USA), March 23, 2021
As part of its Project Charging Forward, BorgWarner Inc - a global product leader in clean
and efficient technology solutions for combustion, hybrid and electric vehicles - 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.