BorgWarner expects 28 percent improvement in powertrain business

Article by Christian A., on November 14, 2010

Because of the surge in the demand for fuel-efficient engine and transmission technologies, BorgWarner Inc. anticipates a 28 percent increase in new business for its powertrain products over the next three years. BorgWarner said that its backlog of new business for powertrain parts stands at $2.3 billion for 2011 through 2013.

This is about 28 percent higher than the three-year forecast the company issued last year. The company disclosed that 77 percent of the backlog concerns engine-related products such as turbochargers and ignition systems.

The remaining portion stems from drivetrain products, such as BorgWarner’s dual-clutch transmissions and all-wheel-drive technologies.

Robert W. Baird & Co. analyst David Leiker wrote a research note, indicating that the improvement is being driven by greater demand for products that increase fuel economy and reduce emissions.

Boosting the demand for engine products are turbochargers for gasoline direct-injected engines. BorgWarner is optimistic that the global market for gas engine turbochargers will almost triple over the next five years to over 10 million by 2015.

The company’s dual-clutch technology makes up 13 percent of the expected new business. BorgWarner predicts almost 400 percent global growth in dual-clutch transmissions to nearly 6 million units by 2015.

In a statement, BorgWarner CEO Tim Manganello said that Europe is responsible for almost half of the supplier’s overall backlog, as the continent continues to lead in the adoption of new powertrain technology. [via autonews - sub. required]

Topics: borgwarner, sales

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