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BorgWarner Solidifies Extended Wastegate Turbo Contracts with Major OEM

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BorgWarner (BWA) has extended its contracts with a major North American OEM for wastegate turbocharger programs targeting midsized gasoline engines. The extension will continue through 2028 and beyond, supplying turbochargers for the automaker's midsized and large SUVs, and truck applications.

The wastegate turbo technology features electrically actuated wastegate actuators that enable precise boost level control, improving fuel efficiency and reducing emissions. The robust design focuses on lightweighting and durability while delivering quick boost response and powerful performance.

The partnership, spanning over 10 years, involves supplying one to two turbochargers per engine platform, depending on specifications. The turbochargers amplify engine output by generating more horsepower in a smaller, more compact package, with each unit optimized for specific performance requirements.

BorgWarner (BWA) ha esteso i suoi contratti con un importante OEM nordamericano per i programmi di turbocompressori wastegate destinati ai motori a benzina di medie dimensioni. L'estensione continuerà fino al 2028 e oltre, fornendo turbocompressori per i SUV di medie e grandi dimensioni e per le applicazioni camionistiche dell'automobilista.

La tecnologia del turbocompressore wastegate presenta attuatori wastegate elettricamente attivati che consentono un controllo preciso del livello di sovralimentazione, migliorando l'efficienza dei consumi e riducendo le emissioni. Il design robusto si concentra sulla leggerezza e sulla durabilità, offrendo una rapida risposta al sovralimentazione e prestazioni potenti.

La partnership, che dura da oltre 10 anni, prevede la fornitura di uno o due turbocompressori per piattaforma motore, a seconda delle specifiche. I turbocompressori aumentano l'uscita del motore generando più potenza in un pacchetto più piccolo e compatto, con ogni unità ottimizzata per requisiti di prestazione specifici.

BorgWarner (BWA) ha ampliado sus contratos con un importante OEM de América del Norte para programas de turbocompresores wastegate destinados a motores de gasolina de tamaño mediano. La ampliación continuará hasta 2028 y más allá, suministrando turbocompresores para los SUV de tamaño mediano y grande, así como aplicaciones de camiones.

La tecnología de turbocompresores wastegate incluye actuadores wastegate accionados eléctricamente que permiten un control preciso del nivel de sobrepresión, mejorando la eficiencia del combustible y reduciendo las emisiones. El diseño robusto se centra en la reducción de peso y la durabilidad, mientras ofrece una rápida respuesta del turbo y un rendimiento potente.

La asociación, que se extiende por más de 10 años, implica la entrega de uno a dos turbocompresores por plataforma de motor, dependiendo de las especificaciones. Los turbocompresores amplifican la salida del motor generando más potencia en un paquete más pequeño y compacto, con cada unidad optimizada para requisitos de rendimiento específicos.

BorgWarner (BWA)는 중형 가솔린 엔진을 겨냥한 웨이스트게이트 터보차저 프로그램에 대해 주요 북미 OEM과의 계약을 연장했습니다. 이 연장은 2028년까지 계속되어, 자동차 제조사의 중형 및 대형 SUV와 트럭 애플리케이션을 위한 터보차저를 공급할 것입니다.

웨이스트게이트 터보 기술은 정밀한 부스트 레벨 제어를 가능하게 하는 전기적으로 구동되는 웨이스트게이트 액추에이터를 특징으로 하여 연료 효율성을 향상하고 배출가스를 줄입니다. 견고한 디자인은 경량화와 내구성에 중점을 두면서 빠른 부스트 반응과 강력한 성능을 제공합니다.

10년 이상 지속되어 온 파트너십은 사양에 따라 엔진 플랫폼당 1~2개의 터보차저를 공급하는 내용을 포함합니다. 터보차저는 더 작고 컴팩트한 패키지에서 더 많은 마력을 생성하여 엔진 출력을 증폭하고, 각 유닛은 특정 성능 요구 사항에 최적화되어 있습니다.

BorgWarner (BWA) a prolongé ses contrats avec un important OEM nord-américain pour des programmes de turbocompresseurs wastegate visant des moteurs à essence de taille moyenne. La prolongation se poursuivra jusqu'en 2028 et au-delà, fournissant des turbocompresseurs pour les SUV de taille moyenne et grande, ainsi que pour les applications de camions du constructeur automobile.

La technologie des turbocompresseurs wastegate dispose de actionneurs wastegate électriquement activés qui permettent un contrôle précis du niveau de suralimentation, améliorant l'efficacité énergétique et réduisant les émissions. La conception robuste se concentre sur la légèreté et la durabilité tout en offrant une réponse rapide en pression et des performances puissantes.

Le partenariat, qui s'étend sur plus de 10 ans, implique la fourniture d'un à deux turbocompresseurs par plateforme moteur, selon les spécifications. Les turbocompresseurs amplifient la sortie du moteur en générant plus de puissance dans un package plus petit et plus compact, chaque unité étant optimisée pour des exigences de performance spécifiques.

BorgWarner (BWA) hat seine Verträge mit einem wichtigen nordamerikanischen OEM für Wastegate-Turboladerprogramme erweitert, die auf mittelgroße Benzinmotoren abzielen. Die Erweiterung wird bis 2028 und darüber hinaus fortgesetzt und liefert Turbolader für die mittelgroßen und großen SUVs sowie Lkw-Anwendungen des Automobilherstellers.

Die Wastegate-Turbo-Technologie umfasst elektrisch betätigte Wastegate-Aktoren, die eine präzise Steuerung des Ladedruckniveaus ermöglichen, die Kraftstoffeffizienz verbessern und die Emissionen reduzieren. Das robuste Design konzentriert sich auf Leichtbauweise und Haltbarkeit, während es eine schnelle Ladedruckreaktion und leistungsstarke Leistung bietet.

Die Partnerschaft, die über 10 Jahre dauert, umfasst die Lieferung von ein bis zwei Turboladern pro Motorenplattform, abhängig von den Spezifikationen. Die Turbolader verstärken die Motorleistung, indem sie mehr Pferdestärke in einem kleineren, kompakteren Paket erzeugen, wobei jede Einheit auf bestimmte Leistungsanforderungen optimiert ist.

Positive
  • Contract extension secured through 2028 and beyond with major North American OEM
  • Technology improves fuel efficiency and reduces emissions
  • Versatile application across multiple vehicle platforms (SUVs and trucks)
Negative
  • None.

Insights

This contract extension carries significant strategic and financial implications for BorgWarner's market position. The deal secures a stable revenue stream through 2028 and beyond, particularly valuable in the cyclical automotive components sector. The extension with a major North American OEM - likely one of the Big Three automakers - suggests annual revenues in the hundreds of millions given the application scope across multiple SUV and truck platforms.

The technology aspect is particularly noteworthy from a competitive standpoint. The electrically actuated wastegate design represents a premium positioning in the turbocharger market, offering superior boost control compared to pneumatic alternatives. This technological edge helps defend against pricing pressure from lower-cost competitors, especially from Asian manufacturers.

Most crucially, this extension demonstrates BorgWarner's successful navigation of the auto industry's transition period. While the company is investing heavily in electrification, this contract shows how traditional ICE components can remain profitable through the 2020s. The focus on fuel efficiency and emissions reduction with these turbochargers also aligns with tightening regulations, providing automakers a cost-effective way to meet standards without full electrification.

The extension's timing through 2028 is strategically significant, as it bridges the gap during the gradual EV transition while providing steady cash flow to fund BorgWarner's electric mobility initiatives. This balanced approach to portfolio management should resonate well with investors concerned about the company's ability to manage the ICE-to-EV transition.

  • Wastegate turbocharger technology to be deployed on midsized gasoline engines
  • Robust design enables quick boost response and powerful performance
  • Extension highlights BorgWarner's longstanding and trusted relationship with OEM

AUBURN HILLS, Mich., Feb. 6, 2025 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions for the vehicle market, is continuing its partnership with a major, North American-based OEM by extending contracts on several wastegate turbocharger programs for midsized gasoline engines. The turbocharged engines will continue to power several of the automaker's midsized and large SUVs, as well as truck applications, with production to continue through 2028 and beyond.

The reliable wastegate turbo technology features a robust design that enables lightweighting and durability, and delivers a quick boost response and powerful performance. All turbochargers making up the extension feature wastegate actuators to help release excess built up energy within the engine. Additionally, they are all electrically actuated, allowing for more precise control of boost levels, improving fuel efficiency and reducing emissions.

"BorgWarner has a longstanding and trusted relationship with this OEM, having supplied them with our turbochargers for more than 10 years," said Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "These platform extensions are a testament to the strong collaboration between our engineering teams and we look forward to continuing our work together through the rest of this decade and beyond."

BorgWarner's wastegate turbochargers significantly amplify output of the engine, generating more horsepower, which enables a more powerful engine in a smaller, more compact package. The number of turbos needed per engine varies – some of the OEM's platforms need only one, while two are needed for others. Though there are no major technology adjustments required for the contract extensions, BorgWarner put extensive effort into the initial designs ensuring each turbo was supplying the optimal air flow to meet performance specifications.  

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 release may contain 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 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 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: supply disruptions impacting us or our customers, commodity availability and pricing, and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, particularly as they relate to electric vehicles, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks, noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. 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 release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

 

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SOURCE BorgWarner

FAQ

What is the duration of BorgWarner's (BWA) new turbocharger contract extension?

The contract extension runs through 2028 and beyond for wastegate turbocharger programs.

Which vehicles will use BorgWarner's (BWA) wastegate turbochargers?

The turbochargers will power the OEM's midsized and large SUVs, as well as truck applications.

What are the key benefits of BWA's wastegate turbocharger technology?

The technology offers lightweighting, durability, quick boost response, powerful performance, improved fuel efficiency, and reduced emissions.

How many turbochargers are required per engine in BWA's new contract?

The number varies by platform - some engines require one turbocharger while others need two.

What makes BWA's wastegate turbochargers more efficient?

They feature electrically actuated wastegate actuators that allow more precise control of boost levels, improving fuel efficiency and reducing emissions.

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