BorgWarner Extends Four Exhaust Gas Recirculation Contracts with Major North American OEM

Rhea-AI Summary

BorgWarner (BWA) has extended four Exhaust Gas Recirculation (EGR) system contracts with a major North American OEM through 2029. The EGR components, including valves, coolers, and modules, will be supplied for passenger and light commercial vehicles with both combustion and hybrid applications.

The company's EGR systems are designed to reduce NOx emissions and improve fuel economy by recirculating exhaust gases back into the intake air. The technology features hybrid tube and corrugated tube technologies, monoblock architecture for increased compactness, and floating core technology for enhanced thermal robustness. The systems are optimized for thermal efficiency and minimal pressure drop, with valves designed for precise gas flow control and corrosion resistance.

Positive

• Extended contracts with major North American OEM through 2029, securing long-term revenue stream
• Technology serves both combustion and hybrid vehicles, demonstrating adaptability to evolving market needs
• Advanced EGR systems help OEMs meet environmental standards while improving fuel economy

Negative

• Heavy focus on traditional combustion engine technology in an increasingly electrifying automotive market
• Dependency on internal combustion engine market which faces long-term decline

• BorgWarner to supply Exhaust Gas Recirculation (EGR) components for OEM's passenger and light commercial vehicle platforms for combustion and hybrid applications
• EGR system reduces NOx emissions and improves fuel economy to help meet environmental standards
• EGR production extends through 2029

AUBURN HILLS, Mich., May 6, 2025 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is extending its business with a major North American OEM by finalizing extensions of four EGR system volume contracts. The EGR systems are used on several of the automaker's passenger and light commercial vehicle platforms for combustion and hybrid applications. Production of the EGR components – EGR valves, coolers, and modules – is expected to continue through the end of 2029.

BorgWarner's EGR systems are optimized for increased robustness against thermal fatigue. They reduce NOx emissions and improve fuel economy by recirculating a portion of the engine's exhaust gases back into the intake air to reduce combustion temperatures. BorgWarner's extensive range of EGR modules, valves and coolers are uniquely positioned to work together to construct a fully integrated and complete EGR system.

"These contract extensions are a testament to BorgWarner's ongoing commitment and success in supplying our long-standing customers with high quality and reliable EGR systems for both combustion and hybrid engines," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "Combining our established technologies with our global manufacturing experience and footprint, along with our strong customer relationships, we continue to provide solutions that reduce emissions and help meet environmental standards."

BorgWarner's hybrid tube and corrugated tube technologies are meticulously tailored to each application. These innovative solutions ensure the cooler delivers optimized thermal efficiency and minimal pressure drop, even under the most demanding conditions.  Additionally, the systems offered include monoblock architecture, which increases compactness and reduces costs, as well as floating core technology for applications in need of added thermal robustness. BorgWarner's coolers are designed using advanced modeling tools that result in optimized, high-performance designs. The valves are optimized to deliver accurate and responsive control for precise metering of gas flow, improved sealing capabilities, corrosion resistance and the ability to reliably operate in the harshest of environments. 

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. 

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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: 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; 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 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.

 

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SOURCE BorgWarner

FAQ

What is the duration of BorgWarner's (BWA) extended EGR contracts with the North American OEM?

The EGR component production contracts have been extended through the end of 2029.

What types of vehicles will BorgWarner's EGR systems be used in?

The EGR systems will be used in passenger and light commercial vehicles with both combustion and hybrid applications.

How do BorgWarner's EGR systems improve vehicle performance?

The EGR systems reduce NOx emissions and improve fuel economy by recirculating exhaust gases back into the intake air to reduce combustion temperatures.

What key technologies are included in BorgWarner's EGR systems?

The systems include hybrid tube and corrugated tube technologies, monoblock architecture for compactness, and floating core technology for thermal robustness.

Who announced these contract extensions for BorgWarner (BWA)?

Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager of Turbos and Thermal Technologies, announced the contract extensions.