BorgWarner's electrification business development falls short of expectations

BorgWarner has spent $6 billion on mergers and acquisitions in the "three electrics" - motors, electronic controls, and batteries - over the past decade. It is one of the traditional auto parts companies with the fastest transformation speed, the greatest strength, and the most comprehensive product line. In the crazy mergers and acquisitions and integration, BorgWarner has formed a core product group required for the electrification of passenger cars and commercial vehicles, from motors, inverters to three-in-one iDM integrated electric drive systems, to battery packs PACK, battery management systems, DC fast charging piles, and high-voltage heaters and electronic fan coolers. The goal is to achieve global sales of core electrified products of $5.6 billion by 2025 and $10 billion by 2027. However, BorgWarner's overall sales of electrification business in fiscal 2024 were only $2.666 billion, which means that by fiscal 2025, BorgWarner's electrification business sales growth must exceed 100% to achieve annual targets.