"Charging Forward: 2027" Builds on Company's
Proven Track Record and Leading Market Positions Expecting to
Deliver Enhanced, Sustainable Growth and Value Creation.
AUBURN
HILLS, Mich., June 6, 2023
/PRNewswire/ -- At its 2023 Investor Day being held today,
BorgWarner Inc. (NYSE: BWA) ("the Company") is announcing the next
phase of its "Charging Forward" strategy for advancing its
position as a technology leader in eProducts, while maximizing its
Foundational portfolio.
![BorgWarner Logo (PRNewsfoto/BorgWarner) BorgWarner Logo (PRNewsfoto/BorgWarner)](https://mma.prnewswire.com/media/1020093/BorgWarner_new_Logo.jpg)
"Over the past two years, the BorgWarner team has worked
diligently to execute on our 'Charging Forward' strategy,
and we believe we are well on track to meet or exceed our 2025
goals for EV organic growth, M&A and asset dispositions. This
next phase of growth is a natural extension of our efforts to
enhance our entire eProduct portfolio. Building on our success to
date, we expect our eProducts to deliver over $10 billion in revenue by 2027," said Frédéric
Lissalde, President and CEO of BorgWarner. "We believe BorgWarner
is uniquely positioned to capture this growth opportunity given our
leading market positions, deep customer relationships, strong
Foundational assets and proven track record of innovation. As we
work to drive sustainable, long-term value for our shareholders and
other stakeholders, we will continue to be guided by our vision for
a clean, energy-efficient world."
At today's event, BorgWarner will provide insights into the
Company's acceleration of its positioning and outlook in an
electrified world. Specifically, the Company will profile its
"Charging Forward: 2027" strategy, which focuses on
profitably growing eProducts for both BEVs and Hybrid vehicles
while maximizing the value of its Foundational portfolio. As
part of that strategy, the Company will detail its expectations
regarding the following:
- Achieving over $10 billion in
eProducts sales by 2027, making up nearly 50% of BorgWarner's
total sales;
- Delivering approximately 7% margins and positive free cash
flow in its eProduct portfolio by 2027, driven by leveraging
economies of scale as eProducts revenue growth is expected to
outpace eProduct R&D;
- Maximizing the value of its Foundational portfolio,
through sustaining its leading margin profile and strong free cash
flow conversion to support ongoing investments in electrification;
and
- Continuing its strong commitment to ESG, evidenced by
its goals of achieving carbon neutrality by 2035 for Scope 1 and
Scope 2 emissions, reducing Scope 3 emissions by 25% by 2031 from a
2021 baseline, and transitioning many of its existing people and
manufacturing locations to support the growth in eProducts.
Conference Call and Webcast Details
Today's Investor Day presentation will begin at 9:00 a.m. (EDT). A live webcast and the materials
for today's event will be available on the investor relations
section of BorgWarner's website at borgwarner.com/investors under
Events and Presentations.
About BorgWarner
For more than 130 years, BorgWarner
has been a transformative global product leader bringing successful
mobility innovation to market. Today, we're accelerating the
world's transition to eMobility — to help build a cleaner,
healthier, safer future for all.
Forward Looking Statements: This release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current outlook, expectations, estimates and projections. Words
such as "anticipates," "believes," "continues," "could,"
"designed," "effect," "estimates," "evaluates," "expects,"
"forecasts," "goal," "guidance," "initiative," "intends," "may,"
"outlook," "plans," "potential," "predicts," "project," "pursue,"
"seek," "should ," "target," "when," "will," "would," and
variations of such words and similar expressions (including amounts
labeled with an "E," which indicates the amount is estimated) are
intended to identify such forward-looking statements. Further, all
statements, other than statements of historical fact, contained or
incorporated by reference in this release that we expect or
anticipate will or may occur in the future regarding our financial
position, business strategy and measures to implement that
strategy, including changes to operations, competitive strengths,
goals, expansion and growth of our business and operations, plans,
references to future success and other such matters, are
forward-looking statements. Accounting estimates, such as those
described under the heading "Critical Accounting Policies and
Estimates" in Item 7 of our most recently filed Annual Report on
Form 10-K ("Form 10-K"), are inherently forward-looking. All
forward-looking statements are based on assumptions and analyses
made by us in light of our experience and our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
under the circumstances. Forward-looking statements are not
guarantees of performance, and the Company's actual results may
differ materially from those expressed, projected or implied in or
by the forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this release.
Forward-looking statements are subject to risks and uncertainties,
many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from
those expressed, projected or implied in or by the forward-looking
statements. These risks and uncertainties, among others, include:
supply disruptions impacting us or our customers, such as the
current shortage of semiconductor chips that has impacted original
equipment manufacturer ("OEM") customers and their suppliers,
including us; commodity availability and pricing, and an inability
to achieve expected levels of recoverability in commercial
negotiations with customers concerning these costs; competitive
challenges from existing and new competitors including OEM
customers; the challenges associated with rapidly changing
technologies, particularly as relates to electric vehicles, and our
ability to innovate in response; uncertainties regarding the extent
and duration of impacts of matters associated with the COVID
19/coronavirus pandemic, including additional production
disruptions; the difficulty in forecasting demand for electric
vehicles and our electric vehicles revenue growth; potential
disruptions in the global economy caused by Russia's invasion of Ukraine; the ability to identify targets and
consummate acquisitions on acceptable terms; failure to realize the
expected benefits of acquisitions on a timely basis; our ability to
effect the intended tax-free spin-off of our Fuel Systems and
Aftermarket segments into a separate, publicly traded company on a
timely basis or at all; the potential that uncertainty during the
pendency of the spin-off transaction could affect our financial
performance; the possibility that the spin-off transaction will not
achieve its intended benefits; the failure to promptly and
effectively integrate acquired businesses; the potential for
unknown or inestimable liabilities relating to the acquired
businesses; our dependence on automotive and truck production, both
of which are highly cyclical and subject to disruptions; our
reliance on major OEM customers; fluctuations in interest rates and
foreign currency exchange rates; our dependence on information
systems; the uncertainty of the global economic environment; the
outcome of existing or any future legal proceedings, including
litigation with respect to various claims, or governmental
investigations, including related litigation; future changes in
laws and regulations, including, by way of example, taxes and
tariffs, in the countries in which we operate; impacts from any
potential future acquisition or disposition transactions; and the
other risks noted in reports that we file with the Securities and
Exchange Commission, including Item 1A, "Risk Factors" in our most
recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We
do not undertake any obligation to update or announce publicly any
updates to or revisions to any of the forward-looking statements in
this release to reflect any change in our expectations or any
change in events, conditions, circumstances, or assumptions
underlying the statements.
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SOURCE BorgWarner