BorgWarner (BWA) Bank of America Global Automotive Summit summary

Market outlook and business mix

• Global auto production expected to be flat to down 3%, with demand holding but risks from higher vehicle prices and oil shocks remain.

• Hybrids are growing faster than BEVs, with regional adoption rates varying; China leads in electrification, Europe is in transition, and North America lags.

• Portfolio diversification and regional operating models enable adaptation to shifting market dynamics and regulatory environments.

Competitive landscape and growth strategy

• Strong market positions in foundational products (ranked 1 or 2) and aiming for top 3 in e-products, with ongoing consolidation favoring larger suppliers.

• Competitive advantages in China include speed to market, technology leadership, and deep OEM relationships, especially with top local manufacturers.

• Record new business wins and increased margins reflect successful adaptation and execution.

Battery and e-product business

• Battery business faced headwinds from reduced incentives and softer demand, leading to restructuring and cost optimization; revenue expected down $200M in 2024 but long-term outlook remains positive.

• E-products and PowerDrive Systems have driven growth, with award activity in China influencing wins in Western markets.

• Hybrids offer the highest content per vehicle ($2,300 vs. $570 for foundational), with margins and ROIC targets consistent across product lines.