US global leader in automotive supplies, BorgWarner Inc., plans to match into the electrified transport sector as the world embraces electric vehicles(EVs). During this year’s Investor Day, the company will launch its Project Charging Forward, accelerating its electrification strategy. According […]
US global leader in automotive supplies, BorgWarner Inc., plans to match into the electrified transport sector as the world embraces electric vehicles(EVs). During this year’s Investor Day, the company will launch its Project Charging Forward, accelerating its electrification strategy. According to the company’s chief executive officer, Frederic Lissalde, this strategy will upscale their revenues to forty-five percent from the current three percent by the end of the decade.
“Our company’s 100-plus year history is a story of evolution, built on superior product leadership, an agile, decentralized 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,” said Lissalde. “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,” added Lissalde.
BorgWarner is one of the top automotive suppliers globally, with about ninety-six sites in twenty-four countries. Its acceleration strategies and positioning as a company will enable it to wade through the new battery-powered vehicle market. Firstly, Michigan-headquartered firm will unveil the Charging Forward project, which comprises three pillars. These pillars are the profitable growing the amount of electric light vehicles, moving into commercial electric vehicles, and optimizing the firm’s combustion portfolio by expected dispositions of $3 billion to $4 billion in average revenue
Secondly, the company will decentralize its organization structure, system, as well as component offerings. By disseminating its activities, it would scale up its services and delivery. The organization will also commercialize innovative technology aided by its acclaimed team of professionals.
Besides, the company with various products across the combustion, hybrid and electric propulsion seeks to progress its business combination. By focusing on bolstering top-quartile performance and avoiding any failures and hindrances, the firm will advance its returns and maintain a double-digit margin performance.
The firm also plans to “generate approximately $4.5 billion in free cash flow between 2021 and 2025.” This strategy involves the contribution to capital available by stimulating electric vehicle positioning via mergers and acquisitions and organic investments.
Lastly, BorgWarner plans to work towards its green ambition of joining other automotive players in getting rid of greenhouse gases by 2035. The company intends to perpetuate “its vision of a clean and energy-efficient world, including a commitment to achieving carbon neutrality by 2035.” Some of the firm’s EV products include battery modules and packs, EV transmissions, electric drive motors, thermal management, and controllers.