BorgWarner Inc.

Overview

Legal entity: BorgWarner Inc., a Delaware corporation (founded 1987).
Business focus: Provider of clean and efficient technology solutions for internal combustion, hybrid and electric vehicles.
Primary customers: Original equipment manufacturers (OEMs) of light vehicles, OEMs of commercial and off-highway vehicles, tier-one system suppliers, and aftermarket distributors.
Global footprint: Manufacturing facilities in Europe, the Americas and Asia; supplier to nearly every major automotive OEM.

Strategy: Pursue profitable growth across a technology-focused portfolio that supports EVs, hybrids and combustion vehicles through organic investments and technology-driven acquisitions.
Revenue mix:
- eProducts (EV-related components): approximately $2.6 billion in 2025 (18% of total revenue); $2.3 billion in 2024 (17%); $2.0 billion in 2023 (14%).
- Foundational products (internal combustion engine components, including hybrids): approximately $11.7 billion in 2025 (82%); $11.8 billion in 2024 (83%); $12.2 billion in 2023 (86%).

Turbos & Thermal Technologies
- 2025: $5,772 million (2024: $5,887; 2023: $6,012)
Drivetrain & Morse Systems
- 2025: $5,654 million (2024: $5,577; 2023: $5,549)
PowerDrive Systems
- 2025: $2,347 million (2024: $1,937; 2023: $2,166)
Battery & Charging Systems
- 2025: $590 million (2024: $729; 2023: $546)

Inter-segment eliminations: 2025: -$47 million; 2024: -$44 million; 2023: -$75 million.
Total consolidated net sales: $14,316 million (2025); $14,086 million (2024); $14,198 million (2023).

Geographic mix (2025): 16% of net sales in the United States; 84% outside the United States.
End-market mix (2025): ~82% light-vehicle, ~10% commercial-vehicle, ~5% off-highway, ~3% aftermarket distributors.
Major customers (2025): Volkswagen 13%, Ford 12%. Top ten customers represented 71% of net sales.
Unconsolidated joint venture sales: approximately $764 million in 2025 and 2024; $732 million in 2023.

Total locations: 81 manufacturing, assembly and technical locations as of December 31, 2025.
Global headquarters: Leased facility in Auburn Hills, Michigan.
Facility distribution spans the Americas, Europe and Asia; 37 facilities have leased land rights or leased facilities.

Automotive OEM sales are conducted largely through direct contracts and negotiated terms, with shipments typically from BorgWarner plants directly to OEMs.
Top customer concentration is high, reflecting reliance on a limited number of large OEMs.

Workforce (as of December 31, 2025): 37,500 total (Americas 10,800; Asia 11,900; Europe 14,800). Composition: Salaried 11,600; Hourly 25,900.
R&D expenditures (net): $710 million in 2025 (gross $823 million; customer reimbursements -$113 million). R&D as a percentage of net sales: 5.0% in 2025; 5.2% in 2024; 5.1% in 2023.
Intellectual property: Approximately 5,000 active patents and patent applications; patents and trademarks (including the BorgWarner name) are a key part of the company’s IP portfolio.

As of December 31, 2025: nine joint ventures (six consolidated majority-owned; three equity-method/unconsolidated).
Selected unconsolidated joint ventures:
- NSK-Warner K.K. (50% owned; partner NSK Ltd.)
- Turbo Energy Private Limited (32.6% owned; partners Sundaram Finance Limited and Brakes India Limited)
- Fast Warner Intelligent Control Systems (Xi’an) Co., Ltd. (49% owned; partner Shaanxi Fast Auto Drive Group)
Selected consolidated majority-owned joint ventures:
- BuradaWarner LLC (70% in Korea)
- BorgWarner Transmission Systems Korea Ltd. (60% in Korea; indirect 80% effective ownership due to 50% ownership by NSK-Warner)
- Beijing Delphi Wan Yuan Engine Management Systems Co. Ltd. (51%)
- BorgWarner Shenglong (Ningbo) Co., Ltd. (70%)
- BorgWarner TorqTransfer Systems (Beijing) Co., Ltd. (80%)
- BorgWarner United Transmission Systems Co., Ltd. (66%)

PHINIA spin-off and settlement: A 2025 settlement with PHINIA resolved VAT-related issues, including a $78 million payment to BorgWarner and a $40 million net charge recorded as of December 31, 2025 related to VAT receivables and related tax matters.
2025 business actions: Exited the charging business (BorgWarner Battery & Charging Systems) with production ceasing in Q2 2025.