BorgWarner sees EV, hybrid parts business generate nearly half of sales by 2027
06/06/2023 13:50
June 6 (Reuters) - Auto parts supplier BorgWarner
BWA.N on Tuesday forecast its electrified-vehicle business
would generate about half of its total expected sales of over
$10 billion by 2027, as the company looks to tap strong demand
for cleaner modes of transport.
It also expects the eProducts segment, which makes parts for
EVs and hybrids, to bring in revenues of $2.3 billion to $2.6
billion for 2023 and grow to $5.6 billion in 2025.
"EV-focused M&A is tracking ahead of plan," the company said
ahead of an investor meeting.
Michigan-based BorgWarner has over the past two years
sharpened its efforts to become an EV supplier, snapping up five
companies and spinning off its fuel systems and aftermarket
segments into a separate firm.
Its clients - Volkswagen VOWG_p.DE , General Motors GM.N
and Ford F.N - have also been trying to roll out more
electrified models.
In its most recent quarter, BorgWarner posted
lower-than-expected adjusted earnings as supply chain
constraints continued to be a headwind.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika
Syamnath)
((Nathan.Gomes@thomsonreuters.com;))