BorgWarner Expands Collaboration with Chery to Supply Advanced AWD Products for Global Growth

Rhea-AI Summary

BorgWarner (NYSE:BWA) secured multiple contracts with Chery to supply advanced all-wheel drive technologies, including its Mlock torque-on-demand (TOD) transfer case for Chery pickup vehicles and the Gen VI Cross Wheel Drive (XWD) system for Chery SUVs.

Mass production is scheduled to begin in 2027. The Mlock TOD uses HY-VO driveline chain and supports 2H, AUTO, and mechanical lock modes for on-road efficiency and off-road performance. The Gen VI XWD integrates a modular piston pump, brushless DC motor, and integrated controller to reduce weight, cost and complexity while improving efficiency and traction control.

Positive

• Multiple supply contracts secured with Chery for AWD products
• Mass production scheduled to begin in 2027
• Supply of Mlock TOD transfer case for pickup vehicles with HY-VO driveline chain
• Supply of Gen VI XWD system with integrated pump, brushless DC motor, and controller

Negative

• None.

Insights

Commercial Strategy Analyst

Securing multi-product contracts with a major OEM supports near‑term revenue visibility and volume scaling by 2027.

BorgWarner wins to supply its Mlock TOD for pickup trucks and Gen VI XWD for SUVs create clear product-to-vehicle mappings that translate into predictable bill-of-materials volume once mass production starts in 2027.

Revenue impact depends on order size, pricing, and option penetration; the announced features (2H/AUTO modes, mechanical lock, and integrated Gen VI hardware) raise the chance of higher option uptake but the content provides no contract values to quantify cash flow.

Watch production ramp metrics, unit order schedules, and certification milestones through 2027 for concrete revenue realization; near-term supplier tooling and validation milestones will indicate schedule risk.

Powertrain Systems Engineer

Technical design choices likely improve vehicle efficiency and packaging, strengthening product competitiveness for global SUV and pickup platforms.

The Mlock TOD uses a HY-VO driveline chain to improve high-speed efficiency and offers selectable modes (2H, AUTO, 4H Lock, 4L Lock) that balance fuel economy and off-road capability; the Gen VI XWD combines a modular piston pump, brushless DC motor, and integrated controller to reduce weight, cost, and complexity.

Performance and durability will hinge on integration, calibration, and long-term thermal management; no durability test results or homologation status are provided, so functionality claims remain engineering-level descriptors rather than proven field outcomes.

Key near-term technical milestones to monitor include vehicle-level integration validation, durability testing outcomes, and any supplier quality metrics during the 2027 mass-production ramp.

• BorgWarner's torque-on-demand (TOD) transfer case with mechanical lock (Mlock TOD) to be featured on Chery's pickup vehicles
• BorgWarner's Gen VI Cross Wheel Drive (XWD) system to be featured on Chery's SUV vehicles
• Partnership supports Chery's growth in both domestic and international markets

AUBURN HILLS, Mich., Oct. 30, 2025 /PRNewswire/ -- BorgWarner has secured multiple contracts with Chery to supply advanced All-Wheel Drive (AWD) technologies, including its torque-on-demand transfer case with mechanical lock (Mlock TOD) and Gen VI Cross Wheel Drive (XWD) system. Mass production is scheduled to begin in 2027, strengthening the partnership between BorgWarner and Chery.

"This collaboration leverages BorgWarner's broad product portfolio and technical expertise to support Chery's growth in China and global markets." said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems.

BorgWarner will supply its Mlock TOD transfer case for Chery's pickup truck vehicles. This transfer case features the company's HY-VO® driveline chain, improving efficiency under high-speed operating conditions. The transfer case supports both 2-Wheel-Drive High Range (2H) and AUTO modes, delivering better fuel efficiency on paved roads versus full-time 4-wheel drive (4WD) systems. AUTO mode provides enhanced safety, handling and drivability. Mechanical lock modes (4 Wheel Drive High Range Lock & 4 Wheel Drive Low Range Lock) deliver superior off-road performance, climbing ability, and recovery capability.

In addition, BorgWarner will supply its latest Gen VI XWD system, featuring the Gen VI coupling and Gen VI electronic limited-slip differential, for Chery's SUV models. The new-generation XWD integrates BorgWarner's patented modular piston pump, brushless DC motor, and highly integrated controller to reduce weight, cost, and complexity while significantly improving efficiency. It delivers robust all-wheel drive performance with precise limited-slip control, further improving vehicle stability, handling, and traction.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our business strategy, goals, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: evolving legal, regulatory, and tax regimes; the supply disruptions impacting us or our customers, commodity availability and pricing, and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies,  and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; ; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and suppliers and the economies in which the Company operates; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks, noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-expands-collaboration-with-chery-to-supply-advanced-awd-products-for-global-growth-302599568.html

SOURCE BorgWarner

FAQ

What did BorgWarner announce on October 30, 2025 about Chery and BWA?

BorgWarner announced multiple contracts to supply Mlock TOD transfer cases and Gen VI XWD systems to Chery, with mass production starting in 2027.

When will BorgWarner start mass production of AWD systems for Chery (BWA)?

Mass production for the BorgWarner AWD products supplied to Chery is scheduled to begin in 2027.

Which BorgWarner AWD products will Chery use on pickup trucks and SUVs (BWA)?

Chery will receive BorgWarner's Mlock TOD transfer case for pickup trucks and the Gen VI XWD system for SUV models.

How does the Mlock TOD transfer case improve vehicle performance for Chery (BWA)?

The Mlock TOD uses a HY-VO driveline chain, supports 2H and AUTO modes for better on-road efficiency, and mechanical lock modes for improved off-road capability.

What efficiency and design benefits does the Gen VI XWD system offer (BWA)?

The Gen VI XWD integrates a modular piston pump, brushless DC motor, and integrated controller to reduce weight, cost, and complexity while improving efficiency and traction control.

Will the BorgWarner–Chery partnership target global markets (BWA)?

The collaboration is stated to support Chery's growth in both domestic China and international markets.