BorgWarner Secures Two Dual-Clutch Programs in China

Rhea-AI Summary

BorgWarner (BWA) has strengthened its position in the Chinese dual-clutch transmission (DCT) market through two significant contracts. The company secured a seven-year extension with a German OEM for DCT clutch assembly production at its Tianjin facility, building on a decade-long partnership. The technology offers enhanced performance with reduced rotational inertia and minimized friction losses.

Additionally, BorgWarner won a new DCT clutch program with a prominent Chinese transmission manufacturer for SUVs and sedans, to be produced at its Taicang facility. This product features compact design, superior thermal robustness, and cost-effectiveness. Production is set to begin by end of 2025.

Positive

• Secured 7-year contract extension with German OEM, demonstrating long-term business stability
• Won new contract with prominent Chinese transmission manufacturer for domestic and export markets
• Enhanced product features including reduced friction losses and improved transmission efficiency
• Production capabilities across multiple facilities in China (Tianjin and Taicang)

Negative

• None.

Insights

Automotive Supply Chain Expert

BorgWarner strengthens position in China with two key dual-clutch transmission contracts, demonstrating continued demand for its advanced drivetrain technology.

BorgWarner's announcement of two separate dual-clutch transmission (DCT) programs in China represents meaningful business momentum in the world's largest automotive market. The company has effectively secured both customer retention and expansion - extending a decade-long relationship with a German OEM for seven additional years while simultaneously winning new business with a Chinese transmission manufacturer.

The technical differentiators highlighted for both programs demonstrate why BorgWarner continues to win business. For the German OEM, their clutch assembly reduces rotational inertia and minimizes friction losses, resulting in reduced drag torque and enhanced transmission efficiency. The new Chinese contract leverages a solution with compact design, superior thermal robustness, and cost-effectiveness - a critical combination for the price-sensitive yet technically demanding Chinese market.

Strategically, these wins demonstrate BorgWarner's technical flexibility across both traditional internal combustion engines and mild hybrid applications. This adaptability is crucial during the auto industry's powertrain transition period. The local production approach (at Tianjin and Taicang facilities) gives BorgWarner cost advantages while meeting China's preference for localized manufacturing. The export component of the Chinese OEM program provides additional volume potential beyond the domestic market.

With production for the new Chinese program scheduled to begin by end of 2025, this announcement gives concrete visibility into BorgWarner's future production commitments. While these contracts won't impact immediate financial results, they enhance the company's medium-term business stability in a key global market.

• BorgWarner's Dual-Clutch technology provides superior performance and increased transmission efficiency
• New program captured with prominent transmission manufacturer
• Program extended for seven years with a German OEM in China

AUBURN HILLS, Mich., May 6, 2025 /PRNewswire/ -- BorgWarner strengthened its product leadership in dual clutch modules for dual clutch transmissions (DCT) with a new contract with a prominent Chinese transmission manufacturer and an extension to its current contract with a German OEM in China.

"Our success in securing new projects in the Chinese market underscores BorgWarner's commitment to delivering innovative solutions in the region," said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "We are dedicated to helping our customers grow their business in China and succeed in international markets."

BorgWarner secured a seven-year extension for its DCT clutch assembly with a German OEM in China. The partnership was extended following a decade of successful collaboration and BorgWarner's strong product expertise in DCT technology for both traditional internal combustion engine vehicles and mild hybrid models. Compared to conventional longitudinal wet DCTs, the clutch assembly produced in BorgWarner's Tianjin facility offers superior performance by reducing rotational inertia and minimizing friction losses and leakage. These improvements result in significantly reduced drag torque, enhanced transmission efficiency, and a smoother and more responsive driving experience.

BorgWarner also secured a DCT clutch program with a prominent transmission manufacturer. The product is for a leading Chinese OEM's SUVs and sedans, which will be sold in China and export markets. The clutch module, which will be produced in BorgWarner's Taicang facility, features multiple key advantages: a compact design, superior thermal robustness, and outstanding cost-effectiveness. Thermal robustness brings a range of benefits including smooth shifting in a variety of conditions, excellent hill-start capability, and optimal racing starts. Mass production is scheduled to commence by the end of 2025.

As a leading supplier of wet DCT technology, BorgWarner continues to push the boundaries of innovation and product refinement. Moving forward, BorgWarner remains committed to delivering competitive solutions that support and create added value for customers.

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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SOURCE BorgWarner

FAQ

What new contracts did BorgWarner (BWA) secure in China for its dual-clutch technology?

BorgWarner secured two contracts: a 7-year extension with a German OEM and a new program with a prominent Chinese transmission manufacturer for SUVs and sedans.

When will BorgWarner (BWA) begin production for its new Chinese transmission manufacturer contract?

Mass production is scheduled to commence by the end of 2025.

What are the key advantages of BorgWarner's DCT clutch module for the Chinese market?

The key advantages include compact design, superior thermal robustness, smooth shifting, excellent hill-start capability, and optimal racing starts.

Where will BorgWarner (BWA) manufacture its DCT products in China?

BorgWarner will manufacture the DCT products at its Tianjin facility for the German OEM and at its Taicang facility for the Chinese transmission manufacturer.