BorgWarner Expects $1.1 Billion In New Powertrain Business.(Brief Article)

Autoparts maker BorgWarner Inc. said that it expects to add $1.1 billion of new powertrain business from 2002 through 2004. The company, speaking at the 25th annual Automotive Symposium, sponsored by Gabelli & Co., said about 53 percent of the expected new business is in North America with customers who have not traditionally been a significant part of its sales.

The anticipated new business is 15 percent higher than the company's 2001-2003 forecast made a year ago and should help offset the impact of lower auto production, the company said. "With the momentum of our new business pipeline, we believe that we can deliver on our long-term targets of 8 percent to 10 percent sales growth and 12 percent growth in earnings," Chairman and Chief Executive John Fiedler said in a statement.

Fiedler said the value of BorgWarner's anticipated new business, which is based on customer forecasts this fall, has doubled since 1997. The powertrain includes the engine, transmission, and four-wheel drive. About half of the latest figure involves engine-related products, with another 34 percent representing expansion of its four-wheel-drive business, the company said. The remainder represents its new DualTronic technology, a transmission that drives like an automatic but has the fuel efficiency of a manual, the company added.

By leveraging its powertrain expertise, he said BorgWarner hopes to broaden its customer base and increase the amount of its content in new vehicle programs. "We'll be well ahead of others in our industry," Fiedler said. "Both in North America and in Europe, we're getting a larger share of what's there."

He noted BorgWarner's 2002-2004 book of business will include major programs with General Motors Co., Honda Motor Co. Ltd., Volkswagen AG and Hyundai Motor Co. Ltd.

Fiedler said the company's new transmission technology is expected to do well in Europe. "There, people drive a lot of manuals because of the fuel efficiency and they're tired of shifting (gears)," Fiedler said.

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