AUBURN HILLS, Mich.,
May 7, 2019 /PRNewswire/ -- With
global expertise supplying combustion, hybrid and electric vehicle
propulsion solutions, BorgWarner is continuing to build its
electrification portfolio and systems expertise by agreeing to form
a joint venture with Romeo Power Technology, a technology-leading
battery module and pack supplier. This new joint venture will be
split 60/40 with BorgWarner obtaining the larger share.
"This joint venture will not only complement our strong existing
propulsion portfolio, but we expect it to fill a gap in the
marketplace between battery cell manufacturers and hybrid and
electric vehicle customers," said Joel
Wiegert, President and General Manager BorgWarner Morse
Systems. "We believe our global engineering and manufacturing
footprint enables us to quickly commercialize cutting-edge
technology, delivering even more value to our customers."
BorgWarner believes bringing together BorgWarner's customer,
product launch and quality excellence with Romeo's leading battery
module and pack technology will meet a wide range of customers'
battery-electric vehicle needs. The battery modules and packs are
expected to include intelligent battery management systems with
proprietary algorithms for enhanced performance and cycle life, as
well as proprietary thermal engineering for active and passive
cooling. The addition of battery packs will energize BorgWarner's
existing product portfolio for hybrid and electric vehicles that
includes electric motors, power electronics, high-voltage battery
heaters, eAxle iDMs, onboard battery chargers and much more.
"This joint venture will help Romeo take a big step in the
battery mobility sector by adding BorgWarner's scale and
resources," said Michael Patterson,
Romeo Power Technology Founder and CEO. "Romeo has a fantastic team
that has accomplished a lot in the last four years. And now we'll
continue our progress, with the ability and resources to grow and
accomplish our mission of advancing energy technology."
The joint venture will encompass the mobility portion of the
battery pack business, initially focused on performance and light
vehicles. BorgWarner will also take a 20 percent equity position in
Romeo Power Technology and will fill two seats on its board. The
equity investment and the joint venture are expected to close in
the second quarter of 2019, subject to the satisfaction of
customary closing conditions.
BorgWarner's strategic acquisition of companies involved in
vehicle electrification, to complement its organic efforts, started
in 2015 with the acquisition of Remy International, Inc. (Remy), a
leading manufacturer of rotating electrical components such as
alternators, starter motors and electric traction motors for the
automotive and commercial vehicle industry. In 2017, BorgWarner
acquired Sevcon Inc., a global player in electrification
technologies. Sevcon complemented BorgWarner's power electronics
capabilities and also added onboard charging to the portfolio. In
February 2019, BorgWarner announced
it formed Cascadia Motion and acquired two Oregon-based businesses, Rinehart Motion
Systems LLC and AM Racing Inc. and merged their operations into a
new, wholly owned company focused on electric and hybrid propulsion
solutions for niche and emerging applications. These acquisitions,
along with the joint venture announced today, are significant
milestones as BorgWarner continues to execute its strategy as a
propulsion systems leader for combustion, hybrid and electric
vehicles.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a
global product leader in clean and efficient technology solutions
for combustion, hybrid and electric vehicles. With manufacturing
and technical facilities in 68 locations in 19 countries, the
company employs approximately 30,000 worldwide. For more
information, please visit borgwarner.com.
About Romeo Power Technology
Romeo was founded in 2015
by a group of engineers from SpaceX, Tesla, and Samsung on a
mission to advance energy technology so they could help end energy
poverty. They build "tighter and lighter" battery packs for
electric vehicles and stationary energy storage that perform better
and last longer thanks to industry-leading energy density and
battery management. Learn more at romeopower.com.
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SOURCE BorgWarner