Borg Warner hopes to expand electrical business income

By | April 6, 2021

Car Supplier Bag Warner announced on March 23 to announce the proportion of its electric car revenue to 45% of the total revenue from 2030, and plans to achieve carbon in 2035. Borg Warner has developed a comprehensive plan to accelerate its electrification strategy, while maintaining high profits while achieving organic and inorganic growth of enterprises. Through a new program called “Charging Forward Project”, Borg Warner’s goal is that electric vehicle business income will increase from 3% of 2025 to 25% from 2025, then 2030 further increased to 45%.

In order to achieve this goal, Borg Warner’s CEO FRéDéric Lissalde said that the company will further expand the profit size of electric light vehicles, enter the field of electric commercial vehicle, and through the sales of total revenue between $ 300 million to $ 4 billion. Optimize its internal combination of internal combinations. In the expansion of the electric light vehicle business, Borg Warner’s goal is to achieve organic growth, while pursuing inorganic growth to strengthen its own ability. The company said that it will adjust its internal combination of internal combinations, focus on “support customers to build electrification, electric vehicle interconnect bridge, and have strong financial performance”.

Borg Warna expects that by 2030, its electric light automobile business revenue will increase to about $ 8 billion, 2025, its business revenue is about half, about $ 3.5 billion, mainly from a series of mergers from 2025. activity. In the field of electric commercial vehicles, Borg Warner’s goal is to gradually participate in this market development, which is planned to reach around $ 1 billion in 2025, and approximately $ 2 billion in 2030. In 2021, Borg Warner’s electric light vehicle business income is expected to reach more than 250 million US dollars, and electric commercial vehicle business income is expected to reach around $ 100 million. In order to support its M & A activities, Boganna expects to produce approximately $ 4.5 billion in free cash flows during 2021 to 2025. The supplier said that by 2025, it can be used for mergers and acquisitions of approximately $ 5.5 billion, mainly from the generated free cash flow, internal combustion automotive business disposal, and available lever.

Lissalde said in a statement: “Our company has more than 100 years old history is a sustainable story, established in excellent product leadership, agility, decentralized operational model and discipline strict financial and operational management . We plan to achieve profit growth in the next 10 years. Now it is time to give up the balanced development strategy, accelerate the transformation to electrification. We believe that electrification will bring real tremendous opportunities in the short term, and it is very important for our sustainable development goals. Come, we have been trying to seize this opportunity, and we believe that we have the business scale, product portfolio, financial strength and talent team to achieve success. “

Although the development strategy involves mergers and acquisitions, Borg Warner also pointed out that the company’s R & D (R & D) and capital expenditures in the next five years will exceed $ 3 billion. Before the acquisition, Borg Warner is expected to use nearly 50% of R & D expenditures for electronic products. Borg Warner expects to be $ 907, $ 1,875 and $ 2,640 in each internal light vehicle, a mixed light vehicle and electric light vehicle. Borg Warner also expects the potential market size of Fuel cars and hybrid vehicles to reach $ 1,000 billion in 2025, the size of electric light automobile market will reach $ 38 billion; Borg Warner said in the statement, although in 2025, Fuilin And the business scale of the mixing car market is larger, but Borg Warner still wants to actively involve electric light vehicle, and hopes to further improve market status for a long time.

Borg Warner’s expectations for electric commercial vehicles are based on the following premise, the development opportunities on the basis of existing technologies and capabilities. For electric commercial vehicle business, Borg Warner expects the potential market size of $ 29 billion in 2030, compared to about $ 8 billion in 2021 (according to the company’s introduction, this market size forecast includes forklift charger, electric trucks and Battery, material transport, rail, ship, construction and mining, inverter, electric motor and EGEAR transmission electron drive bridge for global electric trucks, buses). Borg Warner hopes that its existing customer relationship can support it in a new field. There is no doubt that Borg Warner saw the opportunity to use its existing light electric car product portfolio, as well as fuel cell commercial vehicle products. Borg Warner expects its products available in this area including motors, power drive modules, car chargers, inverters, charging stations, battery modules, and battery packs and electric heaters. By organically growing, the M & A activity (to 2025) and the upcoming Akasol’s decision, Borg Warner is expected to receive approximately $ 2 billion in the market size of the 2030 electric vehicle.

The focus of Borg Warner’s internal combustion automotive products is to provide customers with technologies that support them towards electrified components, and connect electric vehicles with future mobile travel needs. Borg Warner will also give priority to business with rich profits, cash flow and scale-effective business. The business of this supplier will get rid of the business involves business that has not yet become industry leaders, and growing slow business in 2025, as well as those “profit prospects more challenging” business. Stefan Demmerle, President of Borg Warner’s Power Drive Systems, also introduced parties and systematic fields with competitive advantage in Borg Warner. At present, Borg Warner is still digesting the impact of the acquisition of Delphi, and the integration of Delphi project will be a recent focus, but the priority of the project will turn to the implementation and ensure project launch; pursuit of growing; Innovation required to locate. Borg Warner’s product and system performance is the core of its strategy, including inverters, motors, and gearboxes for integrated drive modules. Borg Warner estimates that by 2025, the potential outsourcing market of gearboxes as an integrated drive module will reach $ 1.9 billion. Borg Warner will further exert the advantages of customer partners and product leaders and point out that Ford has applied its integrated drive module products on Ford Mustang Mach-E. For electric motors, Borg Warner said they are not only part of the driving module, but also the opportunity to expand the electric vehicle business. Borg Warner expects that by 2025, the potential scale of light-type automotive outsourcing markets will reach $ 4.2 billion. Borg Warner has a series of motor products that support 400V, 800V and 48V applications, and their electric drive technology features high power density. Borg Warner pointed out that its motor products will be integrated with gearboxes and inverters to provide full-module products. Borg Warner expects that by 2025, the potential scale of light-type automotive outsourcing markets will reach $ 88 billion. This supplier expects its scale effect in the electronic product, the proprietary inverter power module design, vertical integration, and rapid marketization helps to enhance its technical advantages and create added values ​​for customers. Borg Warner also pointed out that by 2025, the potential size of light automotive outsourcing markets in other power electronics portfolios will reach $ 9.7 billion. Borg Warner has mass produced combined products such as combined dual inverters, DC / DC converters, and hybrid monitoring ECUs, can also be applied to 400V or 800V batteries. In the short term, Borg Warner is expected that global inverter products, Asian integrated drive modules and electric vehicle will bring income growth opportunities to their electric drive products.

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At present, many car manufacturers have announced the future to transform into a full zero emissions or pure electric vehicle manufacturer. At the same time, there are also many electric motor initiating companies that have emerged, and the impact of supervision is also promoting the transformation of the promotion system, so some traditional supply Commercial also seeks a similar bet. This is also a long-term strategy. In the next few years, we may see the number of electric vehicles on the market exceeding consumers to prepare the number of purchases, especially in the North American market. Borg Warner has developed a clear plan and also sets a clear metrics (45% of the income from electric vehicle systems); with more and more car manufacturers increase their investment in electric vehicles. And drive other vendors to continue to develop electric vehicles. For suppliers, it is now possible to make a good time for electrification transformation commitments. The planning assumptions made by Borg Warner include: By 2030, global light vehicle sales are expected to reach 10.2 billion, of which traditional internal combustion vehicles are 36%, and the mixing vehicle is 34%, and the electric vehicle is 30%. Borg Warner hopes to dominate the industry through the current major transformation strategy.

For Borg Warner, this is a major transformation compared to the balanced development strategy of the internal bolt car, hybrid car and electric vehicle. Although Borg Warner has not yet determined which businesses or planning to acquire, the company has pointed out that since 2015, its electric car product capacity has been improved. Among them, the electric motor business of Riffi Company, the industrial electric drive product business of Saiweikang, the radiochem company (RMS) / AM racing, an electronic product business of electric vehicles, the battery pack of Romeo Power Technology Co., Ltd. And module business, Delphi Technology’s power electronics and software business, as well as battery packs and module services that are about to acquire by Akasol. Borg Warner said that these acquisitions plus their products in 2014, which will reach approximately $ 2,640 on each light electric vehicle, of which $ 1,614 comes from the acquisition of Delphi and Saiweikang business. .

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