At IAA Transportation 2024, BorgWarner solidified its reputation as a leader in the powertrain sector by showcasing a robust portfolio of products and solutions designed to meet the evolving needs of the commercial vehicle industry. With over 130 years of expertise, the company emphasized its dual focus on traditional powertrains and electrification. In exclusive conversations, Joseph F. Fadool, President & General Manager of Emissions, Thermal, and Turbo Systems, and Dr. Paul Farrell, Executive VP & Chief Strategy Officer, shared insights into BorgWarner’s strategy, market challenges, and vision for a sustainable future.
Comprehensive Portfolio for Powertrain Transition
BorgWarner’s display at IAA featured innovative technologies like the LFP battery pack and a 360-kilowatt integrated charger, alongside foundational products such as turbochargers, exhaust gas management systems, and high-voltage electric fans. Dr. Farrell explained, “We offer a full suite of products for the commercial vehicle space, catering to combustion, hybrid, and fully electrified powertrains. Our portfolio is resilient to the pace of industry change.”
This adaptability is central to BorgWarner’s strategy. The company has leveraged its expertise in passenger car electrification to scale solutions for commercial and off-highway vehicles. “Regional markets are transitioning at different rates, and we’re ready to adapt accordingly,” added Fadool.
Strategic Positioning and Global Leadership
BorgWarner’s commitment to electrification has been a multi-year effort, with significant investments in technology and capacity. “We’ve spent the last seven to eight years repositioning the company to serve both traditional and alternative fuel systems, including hydrogen combustion and LNG, while also addressing electrification,” said Fadool.
Highlighting regional dynamics, Dr. Farrell emphasized China’s leading role in electrification. “China is the single largest auto market globally, and it’s pushing boundaries with high-quality products and rapid evolution. Our strong presence there enables us to support their journey,” he noted.
India also plays a pivotal role in BorgWarner’s growth strategy. With six facilities and a newly established engineering center in Bangalore, the company is investing heavily in the region. “India offers immense opportunities, and we expect high single-digit growth there over the next decade,” shared Fadool.
Meeting Market Challenges with Resilience
Navigating industry challenges such as regulatory uncertainties and sustainability goals requires strategic foresight. “Businesses thrive on stability, and clear, consistent regulations are crucial for making long-term investments,” explained Fadool.
The pace of transition and the variety of emerging technologies add another layer of complexity. “Our broad portfolio allows us to respond flexibly to market changes, regardless of how fast or slow the transition unfolds,” said Farrell.
The company’s customer-centric approach sets it apart. “We engage deeply with all major OEMs globally, understanding their challenges and developing high-quality, reliable products that meet their expectations,” emphasized Fadool.
Staying Focused on Core Expertise
BorgWarner remains steadfast in its commitment to propulsion systems, seeing significant growth potential within its current domain. “Content per vehicle increases dramatically with electrified powertrains, offering substantial opportunities,” stated Fadool.
Farrell reinforced this focus: “BorgWarner is, at its core, a propulsion company. There’s plenty to keep us busy as we drive the electrification transition.”
Insights from IAA 2024
For Fadool, IAA is an invaluable platform for understanding industry trends and customer needs. “It’s the best commercial vehicle show I’ve attended. You get a feel for where the industry is headed—it’s not just PowerPoints; it’s seeing visions in action,” he said.
The event also highlighted the diverse paths being explored by OEMs, from electrification to hydrogen fuel cells and LNG. BorgWarner’s versatility ensures it can support its customers across all these technologies.
Outlook for the Future
Looking ahead, BorgWarner is optimistic about continued growth. “This year is unfolding as expected, with strong combustion sales and a steady ramp-up in electrification,” shared Fadool.
With its strategic investments and customer-centric ethos, BorgWarner is well-positioned to lead the global powertrain transition. “As the industry progresses towards a sustainable future, our portfolio and adaptability ensure we remain a valuable partner for OEMs worldwide,” concluded Farrell.
