BorgWarner Extends Transfer Case Business with North American OEM
BorgWarner has secured extensions on two transfer case contracts with a major North American OEM for upcoming vehicle launches. The company will supply Electro-Mechanical On-Demand (EMOD) and Electric Shift-on-the-Fly (ESOF) transfer cases for combustion and hybrid passenger truck platforms. Production is scheduled to begin in 2027 for two platforms and 2028 for the third. The EMOD offers faster response and improved torque accuracy, while the ESOF is designed for rugged part-time four-wheel drive systems. Both transfer cases feature BorgWarner's HY-VO® driveline chain and will be manufactured in Seneca, South Carolina.
BorgWarner ha ottenuto delle estensioni su due contratti per i trasferimenti di casi con un importante produttore OEM nordamericano, in vista dei prossimi lanci di veicoli. L'azienda fornirà casi di trasferimento Electro-Mechanical On-Demand (EMOD) e Electric Shift-on-the-Fly (ESOF) per piattaforme di camion passeggeri a combustione e ibride. La produzione è programmata per iniziare nel 2027 per due piattaforme e nel 2028 per la terza. L'EMOD offre una risposta più rapida e una maggiore precisione della coppia, mentre l'ESOF è progettato per sistemi di trazione integrale part-time resistenti. Entrambi i casi di trasferimento presentano la catena di trasmissione HY-VO® di BorgWarner e saranno prodotti a Seneca, Carolina del Sud.
BorgWarner ha asegurado extensiones en dos contratos de transferencias de casos con un importante OEM norteamericano para los próximos lanzamientos de vehículos. La empresa suministrará casos de transferencia Electro-Mechanical On-Demand (EMOD) y Electric Shift-on-the-Fly (ESOF) para plataformas de camiones de pasajeros de combustión e híbridos. La producción está programada para comenzar en 2027 para dos plataformas y en 2028 para la tercera. El EMOD ofrece una respuesta más rápida y una mayor precisión de par, mientras que el ESOF está diseñado para sistemas de tracción en las cuatro ruedas a tiempo parcial de alta resistencia. Ambos casos de transferencia cuentan con la cadena de transmisión HY-VO® de BorgWarner y se fabricarán en Seneca, Carolina del Sur.
BorgWarner는 북미 주요 OEM과 향후 차량 출시에 대한 두 개의 변속기 계약 연장을 확보했습니다. 이 회사는 내연기관 및 하이브리드 승합 트럭 플랫폼을 위해 Electro-Mechanical On-Demand (EMOD) 및 Electric Shift-on-the-Fly (ESOF) 변속기를 공급할 것입니다. 생산은 두 플랫폼에 대해서는 2027년에, 세 번째 플랫폼에 대해서는 2028년에 시작될 예정입니다. EMOD는 더 빠른 반응속도와 향상된 토크 정확도를 제공하며, ESOF는 견고한 파트타임 4륜 구동 시스템을 위해 설계되었습니다. 두 변속기 모두 BorgWarner의 HY-VO® 드라이브라인 체인을 특징으로 하며 사우스캐롤라이나주 세네카에서 생산될 예정입니다.
BorgWarner a sécurisé des extensions sur deux contrats de boîte de transfert avec un important OEM nord-américain pour les prochains lancements de véhicules. L’entreprise fournira des boîtes de transfert Electro-Mechanical On-Demand (EMOD) et Electric Shift-on-the-Fly (ESOF) pour des plateformes de camions passagers à combustion et hybrides. La production doit commencer en 2027 pour deux plateformes et en 2028 pour la troisième. L'EMOD offre une réponse plus rapide et une précision de couple améliorée, tandis que l'ESOF est conçu pour des systèmes de traction intégrale partielle robustes. Les deux boîtes de transfert intègrent la chaîne de transmission HY-VO® de BorgWarner et seront fabriquées à Seneca, en Caroline du Sud.
BorgWarner hat Verlängerungen zu zwei Verträgen für Transfergehäuse mit einem wichtigen nordamerikanischen OEM für bevorstehende Fahrzeuglaunches gesichert. Das Unternehmen wird Electro-Mechanical On-Demand (EMOD) und Electric Shift-on-the-Fly (ESOF) Transfergehäuse für Verbrennungs- und Hybrid-Passagierlastwagenplatten liefern. Die Produktion soll 2027 für zwei Plattformen und 2028 für die dritte beginnen. Der EMOD bietet eine schnellere Reaktionszeit und verbesserte Drehmomentgenauigkeit, während der ESOF für robuste Teilzeit-Vierradantriebssysteme konzipiert ist. Beide Transfergehäuse verfügen über die HY-VO® Antriebskette von BorgWarner und werden in Seneca, South Carolina, hergestellt.
- Extended contracts with major North American OEM for multiple vehicle platforms
- Production secured through 2027-2028, indicating long-term revenue stability
- First-time EMOD adoption for specific passenger truck platform, showing product line expansion
- Manufacturing to be conducted at existing facility, utilizing current infrastructure
- None.
Insights
This contract extension represents a significant strategic win for BorgWarner, strengthening its position in the automotive drivetrain market. The deal spans multiple platforms and extends through 2027-2028, providing stable revenue visibility. The inclusion of both EMOD and ESOF systems demonstrates BWA's ability to serve both premium and standard market segments.
The 40-year relationship with this North American OEM (likely Ford or GM based on the scale) indicates strong competitive moats and high switching costs for the customer. The new EMOD platform adoption suggests potential for margin expansion, as premium active transfer cases typically command higher margins than traditional systems.
The Seneca facility utilization will benefit from this multi-year commitment, supporting operational efficiency. While specific contract values aren't disclosed, transfer cases are high-value components, typically ranging from
- Company to supply two types of two-speed transfer cases: Electro-Mechanical On-Demand (EMOD) and Electric Shift-on-the-Fly (ESOF)
- Builds on over 40 years of BorgWarner transfer case supply for the OEM's passenger truck platform
- High-performance solutions deliver quick response, improved torque performance
"We have supplied this OEM with transfer cases for its combustion and hybrid passenger truck platforms for over 40 years, and we are honored to have the opportunity to once again provide our transfer cases for several of their upcoming models," said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "These extensions solidify our team's reputation and the proven architecture, performance, reliability and quality of our transfer case products. We're very much looking forward to providing our valued customer with exceptional service for its vehicle platforms."
The EMOD is a high-performance active transfer case that offers faster response, improved torque accuracy, and pre-emptive torque management that enhances the overall safety and stability of the vehicle. The heart of the EMOD is a motor driven clutch-apply system that allows for active modulation of torque distribution between the front and rear wheels based on a variety of continuously monitored vehicle parameters. While used in several other of the OEM's platforms, this is the first time the EMOD transfer case has been adopted for this particular passenger truck platform.
Specifically designed to handle the rugged requirements of a part-time four-wheel drive system in a heavy-duty truck, the ESOF transfer case offers a highly efficient two-wheel drive mode in conjunction with the ability to lock the vehicle into four-wheel drive while in motion. It performs these functions while delivering superior noise, vibration and harshness engineering and design to deliver superior performance. The quick and smooth-shifting ESOF technology has a proven track record, reaching its third vehicle evolution for the passenger truck platform.
Both transfer cases are equipped with BorgWarner's HY-VO® driveline chain, which is optimized for high efficiency and improved durability. The EMOD is equipped with BorgWarner's premium friction products and the entire family of transfer cases will be manufactured at its
About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.
Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently-filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: evolving legal, regulatory, and tax regimes; the supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer ("OEM") customers and their suppliers, including us; commodities availability and pricing, and an inability to achieve expected levels of success in additional commercial negotiations with customers concerning recovery of these costs; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19 pandemic, including additional production disruptions; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by
We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.
View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-extends-transfer-case-business-with-north-american-oem-302292612.html
SOURCE BorgWarner
FAQ
When will BorgWarner (BWA) start production of the new transfer cases?
What types of transfer cases will BorgWarner (BWA) supply in the new contract?