Auburn Hills-based BorgWarner, whose customers include Ford Motor Co., BMW, and John Deere, is forecasting $2.9 billion in new powertrain business between 2014 and 2016 — up 26 percent from the previous three years.
“Improving fuel economy, lowering emissions, and enhancing the driving experience are increasingly important strategic initiatives for automakers around the world,” James R. Verrier, president and CEO, said Tuesday. “BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies that help automakers meet these objectives.”
Turbochargers account for 50 percent of the company’s new business, and Verrier expects production to grow from approximately 31 million units in 2013 to 46 million in 2018.
Another growth sector is dual-clutch technology, or clutchless manual transmission. Production is projected to more than double over the next five years to more than 9 million units by 2018.
“Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner,” said Verrier, noting that approximately 13 percent of the expected new business is related to the commercial vehicle market.
Most of the new business, about 47 percent, will come from Asia, Verrier said. “Approximately 32 percent of our expected new business is in China as our sales to the world’s fastest growing market continue to accelerate. The top 25 customers of our three-year net new business include eight Chinese domestic OEMs.”
The European market will account for approximately 27 percent of new business over the next three years, showing a decrease from 30 percent from 2011 to 2013.
From 2011 to 2013, the European market accounted for approximately 30 percent of new business. “Europe remains an important growth market for our company, however the adoption of our advanced powertrain technology in other parts of the world is expected to outpace Europe over the next few years,” Verrier said.
The company foresees remaining sales of 26 percent will occur in the Americas.