BORGWARNER’S PIVOT FROM COMBUSTION TO ELECTRIC

EV Channels Review

BorgWarner, a century-old automotive supplier, is strategically pivoting from its combustion engine expertise to become a leader in electric vehicle (EV) systems and components. CEO Fred Lissalde outlines a clear, long-term vision, acknowledging that significant EV investments, including acquisitions like Delphi and Akasol, will not yield returns until 2024. The company is actively managing its portfolio, divesting combustion-related assets to fund its EV push. BorgWarner emphasizes its comprehensive approach to the EV supply chain, offering solutions from charging to powertrain components, and aims for technological leadership and scale. While acknowledging the inherent risks and the need for board and shareholder buy-in for a long-term strategy, Lissalde expresses confidence in BorgWarner's ability to execute its plan, driven by expertise, scale, customer intimacy, and management courage. Sustainability is also a core tenet, with a commitment to carbon neutrality by 2035.