Company expects to bring electric vehicle revenue from less than 3 percent of total revenues today to approximately 45 percent in 2030; achieve carbon neutrality by 2035
Auburn Hills, Mich.—BorgWarner Inc. unveiled its Project CHARGING FORWARD at its Investor Day this week. The project represents an acceleration of its electrification strategy, which is expected to bring the company’s electric vehicle revenue from less than 3 percent of total revenues today to approximately 45 percent in 2030.
Frédéric Lissalde, president and CEO of BorgWarner, said, “Our company’s 100-plus year history is a story of evolution, built on superior product leadership, an agile, decentralized operating model and disciplined financial and operational management. As we plan for the next decade-plus of profitable growth, now is the time to move away from a balanced propulsion strategy and accelerate our shift towards electrification. We believe the electrification opportunity is real, large, near term and important to our sustainability goals. We’ve been building toward capitalizing on this opportunity for years and are confident we have the scale, portfolio, financial strength and team to execute successfully.”
BorgWarner provided insights into the company’s acceleration of its positioning and outlook in an electrified world. Highlights include the company’s:
- Project CHARGING FORWARD, which is its plan to grow revenue from electric vehicles to approximately 45 percent of total revenue by 2030 from less than 3 percent today. The plan comprises three pillars: profitably scaling electric light vehicles, expanding into electric commercial vehicles and optimizing the company’s combustion portfolio through the planned dispositions of businesses with between $3 billion and $4 billion in aggregate revenue.
- Decentralized organizational structure, system and component offerings, scale to deliver and commercialize innovative technology, and award-winning teams that the company believes are its competitive advantages to capitalize on its electrification initiatives.
- Continued focus on sustaining top-quartile, double-digit margin performance while significantly evolving its business mix.
- Expectations to generate approximately $4.5 billion in free cash flow between 2021 and 2025 (before acquisitions and dispositions), contributing, along with an investment-grade balance sheet and additional capital from planned combustion dispositions, to capital available for accelerating electric vehicle positioning through M&A and organic investments; and
- Plans to maintain its vision of a clean and energy-efficient world, including a commitment to achieving carbon neutrality by 2035.