BorgWarner Secures New Electric Cross Differential Project for Electric Vehicles in China

Rhea-AI Summary

BorgWarner (NYSE:BWA) has secured a new program to supply its electric cross differential (eXD) technology to a leading Chinese OEM for electric vehicles. The eXD technology dynamically controls power distribution between wheels to enhance vehicle handling and traction capabilities.

The technology, which has proven successful in combustion vehicles, is now being adapted for EVs. The system adjusts slip control based on real-time driving conditions, improving stability during high-speed driving, rapid acceleration, and sharp turns. On dry roads, it transfers more power to outer wheels for better cornering, while in slippery conditions, it redistributes power to wheels with better traction.

Positive

• Expansion of EV technology portfolio in China's growing market
• Successfully transitioning combustion vehicle technology to EVs
• Enhanced vehicle handling and safety features for various driving conditions

Negative

• None.

Insights

Automotive Technology Analyst

BorgWarner's eXD expansion into Chinese EVs strengthens their position in a critical growth market with differentiated technology.

BorgWarner's new program to supply its electric cross differential (eXD) technology to a leading Chinese OEM represents a strategic market expansion for the company in the world's largest electric vehicle market. This move transitions a proven technology from combustion vehicles to the rapidly growing EV segment, positioning BorgWarner to capitalize on China's accelerating electrification.

The technical advantages of the eXD system are significant. By dynamically controlling power distribution between wheels based on real-time conditions, the technology enhances both performance and safety - critical differentiators in the increasingly competitive EV market. The system's ability to improve handling during high-speed driving and sharp turns while also providing superior traction control in varying friction conditions (dry roads versus ice/snow) addresses key performance parameters valued by OEMs.

From a competitive standpoint, this program demonstrates BorgWarner's ability to successfully adapt legacy technologies for the EV era - a critical capability as the industry transitions. While the press release doesn't name the Chinese OEM partner or provide financial details, securing business with a "leading" manufacturer in China suggests potential for significant volume, especially as Chinese EV production continues its rapid growth trajectory. This program further validates BorgWarner's multi-year strategy to pivot its product portfolio toward electrification while leveraging its established expertise in vehicle dynamics and drivetrain systems.

• BorgWarner increases its electric vehicle business in China
• BorgWarner expands application of electric cross differential (eXD) to electric vehicles
• eXD technology enhances vehicle handling and traction capabilities

AUBURN HILLS, Mich., July 31, 2025 /PRNewswire/ -- BorgWarner has secured a new program for its electric cross differential (eXD) technology for a leading Chinese original equipment manufacturer (OEM) to be used in electric vehicles in China. As the electric vehicle market rapidly evolves, traditional powertrain technologies are transitioning towards advanced electrification solutions to meet increasing performance and safety demands. By dynamically controlling power distribution between the wheels, eXD improves handling and traction capabilities.

"BorgWarner's eXD technology improves handling and vehicle stability in various driving conditions," said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "The technology has proven effective in high-performance combustion vehicles, and we are now expanding its application to electric vehicles to elevate the driving experience for electric vehicle users."

BorgWarner's eXD dynamically adjusts slip control based on real-time driving conditions and vehicle status, enhancing vehicle stability during high-speed driving, rapid acceleration, and sharp turns.

Additionally, the eXD showcases superior handling performance across varying friction conditions. For example, on dry roads, higher friction allows for improved grip, enabling the eXD to transfer more power to the outer wheels for enhanced cornering performance. In slippery conditions such as ice, snow, or mud, the eXD rapidly identifies reduced friction and limits power transfer to slipping wheels, reallocating drive force to wheels with better traction to ensure stability and control.

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, 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; 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 and is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of 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 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; 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.

 

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SOURCE BorgWarner

FAQ

What is BorgWarner's new electric cross differential (eXD) technology for EVs?

BorgWarner's eXD is a technology that dynamically controls power distribution between wheels, improving handling and traction in various driving conditions for electric vehicles.

How does BorgWarner's eXD technology improve EV performance?

The eXD technology enhances vehicle stability during high-speed driving, rapid acceleration, and sharp turns by adjusting slip control based on real-time driving conditions and transferring power to wheels with better traction.

Which market is BorgWarner targeting with its new eXD technology program?

BorgWarner is targeting the Chinese electric vehicle market, having secured a program with a leading Chinese OEM manufacturer.

How does BorgWarner's eXD handle different road conditions?

On dry roads, eXD transfers more power to outer wheels for better cornering, while in slippery conditions (ice, snow, mud), it identifies reduced friction and redistributes power to wheels with better traction.

What is the significance of BWA's eXD technology expansion to EVs?

The expansion represents BorgWarner's successful transition of proven combustion vehicle technology to EVs, helping meet increasing performance and safety demands in the evolving EV market.