BorgWarner Secures Boosted Dual Inverter Business with Chinese OEM

Rhea-AI Summary

BorgWarner secures a contract with a major Chinese OEM to supply its dual inverter with boost function for plug-in hybrid and range extended electric vehicle passenger car platforms. The technology offers high integration, dynamic performance, and flexibility, marking the first 400V dual inverter with boost function for the company. The product is specifically developed for hybrid vehicle models, aiming to support and amplify OEM hybrid vehicle production in China.

Automotive Industry Analyst

The contract acquisition by BorgWarner to supply dual inverters with a boost function to a major Chinese OEM represents a significant strategic advancement within the automotive electrification market. This development underscores the company's competitive positioning in the PHEV and REEV segments, which are rapidly expanding due to global emission regulations and consumer demand shifts towards more sustainable transportation options.

From an industry perspective, the integration of the boost module within the 400V dual inverter not only signifies an enhancement in power density but also aligns with the localization of hybrid architecture standards in China, a critical market for electric vehicles. This localization is expected to provide BorgWarner with a competitive edge in cost efficiency and regulatory compliance, potentially leading to increased market share.

Furthermore, the production of these advanced components in BorgWarner's Suzhou plant is indicative of the company's commitment to leveraging local manufacturing capabilities, which may result in supply chain advantages and reduced logistics costs. This decision also reflects a strategic move to align closely with the 'Made in China 2025' industrial policy, favoring domestic production for high-tech components.

Market Research Analyst

The announcement of BorgWarner's inverter technology adoption by a significant Chinese OEM is likely to have favorable implications for the company's stock market performance. Investors often react positively to news that indicates a company is expanding its product portfolio with innovative solutions, especially when these solutions are aligned with current trends such as vehicle electrification.

In terms of market impact, the successful deployment of the voltage-boosted dual inverter technology could serve as a catalyst for further contracts and partnerships, enhancing BorgWarner's revenue streams and diversifying its customer base. Additionally, the company's emphasis on high integration and dynamic performance may set a new benchmark for inverter technology within the industry, potentially influencing competitors' strategies and investor perceptions of the sector's growth potential.

It is also worth noting that the timing of production, set to begin in September 2024, allows investors to anticipate potential financial outcomes in upcoming fiscal periods. This forward-looking information can be factored into valuation models, affecting the stock's perceived risk and future cash flow projections.

Electrical Engineering Expert

The technological innovation of integrating a boost function into a 400V dual inverter indicates a significant advancement in electric vehicle powertrain technology. The ability to precisely control dual motors with a single multi-core control chip is a testament to the sophistication of BorgWarner's Viper platform. This level of integration is not just about enhancing the vehicle's performance; it's also about optimizing space and reducing weight, which are crucial for the efficiency of PHEVs and REEVs.

Key technical benefits such as increased power density and performance, along with lower costs and flexible integration, are likely to make BorgWarner's solution attractive to other OEMs as well. The engineering implications of this technology could lead to broader adoption in the industry, setting new standards for hybrid vehicle powertrain systems. As automakers continue to seek out ways to improve efficiency and performance while reducing costs, BorgWarner's dual inverter with boost could become a pivotal component in the EV market.

• Dual inverters with boost to be featured on automaker's PHEVs and REEVs
• Technology offers high integration, dynamic performance and flexibility

AUBURN HILLS, Mich., Feb. 8, 2024 /PRNewswire/ -- BorgWarner has secured a contract with a major Chinese OEM to supply its dual inverter with boost function on a series of the automaker's plug-in hybrid (PHEV) and range extended (REEV) electric vehicle passenger car platforms. The boost module is directly integrated into the 400V dual inverter to achieve a higher power density as well as meet local hybrid architecture standards within the Chinese market. This win expands BorgWarner's product portfolio with this OEM, marking the first 400V dual inverter with boost function.

The voltage-boosted dual inverter is specifically developed for hybrid vehicle models as an integrated solution. The product uses BorgWarner's Viper platform to implement two inverters and a high-power boost module in a single, compact package and achieves precise control of dual motors with a single, multi-core control chip. Key benefits include increased power density and performance, lower cost and flexible integration that makes installation easy for automakers.

"As the share of hybrid vehicles continues to grow in China, supplying advanced technology like our boosted dual inverter to support and amplify OEM hybrid vehicle production is crucial," said Dr. Stefan Demmerle, President and General Manager of BorgWarner PowerDrive Systems. "Our skilled engineering team, paired with our reputable quality standards and manufacturing processes, makes us a leader in this space and a great partner in the shift toward electrification."  

The dual inverter with boost will be manufactured and assembled in BorgWarner's Suzhou, China plant, with production expected to begin September 2024.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility – to help 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 financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. 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: supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer ("OEM") customers and their suppliers, including us; 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 OEM customers; the challenges associated with rapidly changing technologies, particularly as they relate to electric vehicles, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; disruptions in the global economy caused by wars, including the wars in Ukraine and the Middle East; 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 recently-completed tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended benefits for us; 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; the extent, duration, and impact of the recent and any future strikes involving some 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; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; 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-secures-boosted-dual-inverter-business-with-chinese-oem-302057123.html

SOURCE BorgWarner

FAQ

What contract did BorgWarner secure with a major Chinese OEM?

BorgWarner secured a contract to supply its dual inverter with boost function for plug-in hybrid and range extended electric vehicle passenger car platforms.

What is the purpose of the dual inverter with boost function?

The dual inverter with boost function is specifically developed for hybrid vehicle models to support and amplify OEM hybrid vehicle production in China.

Where will the dual inverter with boost be manufactured and assembled?

The dual inverter with boost will be manufactured and assembled in BorgWarner's Suzhou, China plant, with production expected to begin in September 2024.