BorgWarner is investing in all directions

BorgWarner reports robust activity. “Overall (OE and parts), we are outperforming the market by one or two percentage points. We remain on a growth and profitability trajectory,” comments Noureddine Saidi, Global Product Director for Aftermarket. Furthermore, the 2025 financial year appears promising, with full order books for OE. In the aftermarket segment, several new product launches and range extensions planned for 2024 are expected to fully materialise in the upcoming financial year.

The company is leveraging its historical strongholds in Europe and the United States. These two mature markets are demonstrating sustained growth as vehicle parcs on both sides of the Atlantic age, boosting demand for maintenance and repair. “However, we are closely monitoring developments in US customs policies under the new administration, as some of our components are sourced from China. Despite this, these two regions remain our most significant markets,” confirms Noureddine Saidi.

As part of its “Charging Forward” strategic plan, BorgWarner has made significant investments in recent years to support the energy transition, including the integration of Phinia, prior to its spin-off in July 2023. However, with declining electric vehicle sales volumes, the company is witnessing a resurgence in OE programmes for ICE engines. This dual demand necessitates continued investment in both electric and ICE technologies. BorgWarner’s prior investments in electrification ensure it is well-positioned to respond when the sector regains momentum.

Currently, although a range of products for electric vehicles is available in its catalogue, 99.9% of the company’s business still involves products designed for petrol or diesel engines across Europe and North America. Recent OE programmes underline BorgWarner’s commitment to maintaining an extensive product range for ICE engines in the aftermarket sector. “BorgWarner’s ICE vehicle strategy is internally referred to as ‘last man standing’, signifying our intent to offer solutions for ICE engines as long as our customers require them,” Saidi states—a clear message to its sales and distribution partners.

This dual-focus strategy allows BorgWarner to thrive in the aftermarket. Earlier investments in electrification, alongside more recent funding for ICE programmes, position the company to meet market demands, regardless of future trends. Saidi asserts, “This approach offers us greater security compared to competitors who may not have adequately anticipated the energy transition.”

The product portfolio for electric vehicles has grown significantly in recent months, now including electric motors and transmissions, power electronics, battery thermal management systems, and charging stations. Simultaneously, offerings for ICE engines continue to expand, with particular emphasis on standard exchange and exchange-repair solutions.

BorgWarner operates four remanufacturing centres globally, with one located in Europe, focused on refurbishing turbochargers and exhaust gas recirculation (EGR) valves. In the exchange-repair sector, the company introduced repair kits for dual clutches over a year ago and recently added kits for timing chain repairs.

Remanufacturing remains a strategic priority for BorgWarner. According to Saidi, “Electric vehicles will inevitably require recycling and standard exchange due to the high cost of systems.” Modules and assemblies are now being designed with reparability, or design for repair, in mind.