BorgWarner Inc.
BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.
What does it do?
BorgWarner makes the parts that go inside your car's engine and drivetrain — the stuff you never see but that makes the car actually work. Think turbochargers (which squeeze more power out of smaller engines), electric motors for hybrid cars, and battery cooling systems for EVs. If you drive a Ford F-150, a BMW, or a Volkswagen, there's a good chance BorgWarner parts are under the hood. They're not a car brand — they're the supplier that car brands quietly depend on.
BorgWarner is sitting at a crossroads: it was built on combustion engine parts, but it's now racing to reinvent itself as a key supplier for electric vehicles. That transition story makes it interesting to investors who think EVs will eventually dominate but want to bet on the picks-and-shovels suppliers rather than the car brands themselves. With $14.3B in revenue, it's big enough to matter — the question is whether it can shift fast enough.
How does it make money?
BorgWarner makes money by selling components to automakers, and it does this through four business segments. Turbos & Thermal Technologies (traditional engine parts like turbochargers) and Drivetrain & Morse Systems (transmission components) are the legacy cash generators. PowerDrive Systems and Battery & Charging Systems are the newer EV-focused units, selling electric motors, inverters, and battery management hardware. Revenue grew from $14.1B to $14.3B year-over-year — modest growth, but the mix is gradually shifting toward EV products.
Why do investors care?
The bull case for BorgWarner is that every major automaker needs EV components, and BorgWarner already has the manufacturing scale and customer relationships to supply them. The company has set a target to grow EV-related revenue significantly as a share of its total sales. For that to work, EV adoption globally needs to keep accelerating, automakers need to keep outsourcing parts rather than building them in-house, and BorgWarner needs to execute on its product transition without losing ground in its legacy business too fast.
Deep Dive
MemberA full investor briefing on BorgWarner Inc. — history, leadership, risks, and outlook.