BorgWarner Set to Deliver Power-Packed Integrated Drive Module and Generator Module with Dual Inverter to Major North American OEM

Rhea-AI Summary

BorgWarner (NYSE:BWA) won a contract to supply an 800-volt secondary integrated drive module (iDM) and a generator module with dual inverter to a major North American OEM for REEV trucks and large-frame SUVs, with production starting in 2029. The award introduces BorgWarner's next-generation Viper power module and highlights a compact, torque-dense induction e-machine that avoids permanent magnets, plus a permanent-magnet generator module with dual inverter to extend vehicle range. The design prioritizes packaging, efficiency, supply-chain resilience, and scalable 800V propulsion capability across hybrid and electric applications.

Positive

• Secured contract to supply 800V iDM and generator module to a major North American OEM
• Production scheduled to begin in 2029, showing a clear multi-year program timeline
• Introduces next-generation Viper power module, indicating technology advancement
• iDM uses induction e-machine, eliminating permanent magnets and supporting supply-chain resilience
• Scalable 800-volt iDM suitable for hybrid and electric REEV trucks and large SUVs

Negative

• Production not starting until 2029, delaying near-term revenue recognition
• No financial terms disclosed, leaving revenue and margin impact uncertain
• Contract tied to a single unnamed major OEM, creating potential customer concentration risk

News Market Reaction

+22.45% 1.6x vol

135 alerts

+22.45% News Effect

+23.5% Peak in 24 hr 13 min

+$2.75B Valuation Impact

$14.98B Market Cap

1.6x Rel. Volume

On the day this news was published, BWA gained 22.45%, reflecting a significant positive market reaction. Argus tracked a peak move of +23.5% during that session. Our momentum scanner triggered 135 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $2.75B to the company's valuation, bringing the market cap to $14.98B at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

System voltage: 800-volt Production start: 2029

2 metrics

System voltage 800-volt Secondary integrated drive module and generator module platform

Production start 2029 REEV trucks and large-frame SUV models

Market Reality Check

Price: $62.80 Vol: Volume 4,756,480 is 2.2x ...

high vol

$62.80 Last Close

Volume Volume 4,756,480 is 2.2x the 20-day average of 2,164,634, indicating elevated trading interest ahead of this contract news. high

Technical Price at $53.98 is above the 200-day MA of $40.6 and less than 1% below the 52-week high of $54.45, showing a strong pre-existing uptrend.

Peers on Argus

BWA gained 2.35% with strong volume. Key peers showed modest mixed moves: ALV +0...

BWA gained 2.35% with strong volume. Key peers showed modest mixed moves: ALV +0.58%, MOD +0.62%, ALSN +0.20%, LKQ +2.34%, LEA -0.84%. With no peers in the momentum scanner and no same-day peer headlines, the move appears more company-specific than sector-driven.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Dividend declaration	Positive	-0.3%	Announced <b>$0.17</b> quarterly dividend payable on <b>March 16, 2026</b>.
Jan 23	Reputation award	Positive	-0.4%	Named to Fortune’s 2026 World’s Most Admired Companies list, ranking third.
Nov 20	Brand sponsorship	Positive	-5.0%	Added Alex Palou as 112th face on Borg-Warner Trophy after 2025 Indy 500 win.
Nov 13	Dividend declaration	Positive	-1.3%	Declared <b>$0.17</b> quarterly dividend payable on <b>Dec. 15, 2025</b>.
Nov 04	Employer ranking	Positive	+0.6%	Included in Forbes America’s Best Employers for Engineers 2026 ranking.

Pattern Detected

Recent positive corporate and dividend announcements have often been followed by flat to negative next-day moves, suggesting a tendency for the stock to underreact or fade after favorable news.

Recent Company History

Over the last few months, BorgWarner’s news flow highlighted dividends, brand recognition and employer accolades. Two dividend declarations in Nov 2025 and Feb 2026 maintained a $0.17 per-share payout but saw slightly negative price reactions. Reputation-driven news like the Fortune ‘Most Admired’ and Forbes engineering employer rankings also produced mixed or modest price moves. A motorsports-related trophy announcement in Nov 2025 coincided with a sharper -4.99% drop. Against this backdrop, today’s major REEV contract win comes as a more clearly business-driven catalyst.

Market Pulse Summary

The stock surged +22.4% in the session following this news. A strong positive reaction aligns with B...

Analysis

The stock surged +22.4% in the session following this news. A strong positive reaction aligns with BorgWarner’s clearly accretive contract win, given the 800-volt REEV drive and generator modules targeting trucks and large SUVs from 2029. Historically, reputation and dividend news often saw fades, with only 1 of the last 5 events aligning positively. A sustained move would likely depend on how investors weigh long lead times, execution on this program, and visibility into additional awards in similar propulsion platforms.

Key Terms

range extended electric vehicle (reev), integrated drive module, dual inverter, induction e-machine, +4 more

8 terms

range extended electric vehicle (reev) technical

"applied to customer's range extended electric vehicle (REEV) trucks and SUVs"

A range extended electric vehicle (REEV) is driven by an electric motor using a battery for propulsion, but includes a small onboard engine or generator that activates to recharge the battery and extend driving range when the battery runs low. For investors, REEVs matter because they change production costs, fuel and maintenance exposure, regulatory credit eligibility and consumer appeal—think of the generator as a backup power bank that reduces “range anxiety” while keeping the car primarily electric.

integrated drive module technical

"800-volt secondary integrated drive module (iDM) and a generator module"

An integrated drive module is a compact hardware unit that combines the motor, its power electronics and control circuitry into a single packaged component, much like a single appliance that houses a motor and its control panel instead of separate parts. Investors care because it can lower manufacturing costs, simplify product design, improve reliability and speed up time to market for devices such as electric vehicles, industrial robots and appliances—factors that can boost margins and competitive advantage.

dual inverter technical

"generator module incorporating a dual inverter"

A dual inverter is a device or design that uses two independent power-conversion units to control an electric motor or manage electrical flow, giving smoother operation, finer speed control and a backup if one unit fails. For investors, that translates into clearer product advantages—better energy efficiency, quieter operation, longer equipment life and potential reliability claims that can drive higher sales, pricing power or lower warranty costs.

induction e-machine technical

"featuring a fully integrated induction e-machine and gearbox"

An induction e-machine is an electric motor or generator that creates motion by inducing electrical currents in a rotating part instead of using permanent magnets. It is commonly used in electric vehicles and industrial equipment. For investors it matters because this design tends to be cheaper and less dependent on rare materials but can differ in efficiency, weight and performance—factors that affect manufacturing cost, vehicle range and competitiveness.

permanent magnet electric machine technical

"generator module features a permanent magnet electric machine"

A permanent magnet electric machine is a motor or generator that uses built-in magnets instead of electromagnets to produce motion or electricity. Think of it like a spinning magnet inside coils of wire: the fixed magnets create a steady magnetic field that makes the device smaller, more efficient, and simpler to run than alternatives. Investors care because these machines often lower energy and maintenance costs but create exposure to the price and availability of specific magnetic materials.

internal combustion engine (ice) technical

"dual inverter mounted directly to an internal combustion engine (ICE)"

A internal combustion engine (ICE) is a machine that creates motion by burning fuel inside small chambers, where the expanding gases push pistons like a series of controlled pops that turn wheels or a generator. Investors care because ICE technology determines fuel costs, vehicle design, maintenance needs and regulatory exposure; shifts away from ICE toward alternatives can change demand, profit margins and the competitive outlook for manufacturers, suppliers and energy companies.

power module technical

"introduction of its next-generation Viper power module"

A power module is a compact electronic unit that converts and controls electrical energy for a device or system, combining functions such as changing voltage levels, turning power on and off, and preventing overheating. Investors track power modules because they directly affect a product’s efficiency, reliability, size and cost—improvements can raise profit margins and market appeal, while shortages or failures can delay shipments and hurt revenue, like the engine that determines how well a car runs.

inverter technical

"from platform-based, high performing and efficient drive units to inverters, e-machines"

An inverter is a device that converts direct current (DC) electricity into alternating current (AC) electricity, which is the form used by most home appliances and the power grid. This process is essential for systems like solar panels, allowing the stored or generated energy to be used in daily life or fed back into the electrical network. For investors, inverters are important because they enable renewable energy systems to operate effectively and connect to existing power infrastructure, impacting the value and growth potential of energy-related investments.

AI-generated analysis. Not financial advice.

• Technology to be applied to customer's range extended electric vehicle (REEV) trucks and SUVs
• Provides compact package while exceeding power, torque, and overall performance requirements
• Highlights extensive breadth of the company's propulsion capabilities in North America and beyond

AUBURN HILLS, Mich., Feb. 11, 2026 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured a contract with a major North American original equipment manufacturer (OEM) to provide a powerful and efficient 800-volt secondary integrated drive module (iDM) and a generator module incorporating a dual inverter. The BorgWarner solutions will be integrated into a series of the automaker's REEV trucks and large-frame SUV models, with production set to begin in 2029. This significant business award achieves several company milestones, including the introduction of its next-generation Viper power module.

BorgWarner's 800-volt iDM is a scalable, two-in-one drive module featuring a fully integrated induction e-machine and gearbox for use in hybrid or electric vehicle (EV) applications. The generator module features a permanent magnet electric machine and a dual inverter mounted directly to an internal combustion engine (ICE), extending the range of the vehicle platforms. The combination enables the vehicle to realize the performance capabilities and benefits of an EV with the no-compromise availability of the ICE when needed.

"This business win showcases our breadth in the propulsion space in North America, accentuating our innovative design and manufacturing capabilities to deliver a full motor portfolio from platform-based, high performing and efficient drive units to inverters, e-machines, control boards and more," said Dr. Stefan Demmerle, Vice President of BorgWarner Inc. and President and General Manager of BorgWarner PowerDrive Systems. "We're grateful for the opportunity to carry on our strong, collaborative relationship with this highly respected OEM."

A key factor in designing these custom products was achieving the automaker's high performance needs in a challenging packaging space shared with the ICE. The BorgWarner team achieved a high-performance, compact solution with the use of its highly efficient and torque-dense induction electric machine in the iDM. The induction e-machine eliminates the need for permanent magnets, supporting a resilient supply chain. In the generator module, the BorgWarner team developed an optimized dual inverter design featuring its next-generation Viper power switch technology. This proprietary, extremely power-dense power module helped deliver a smaller, more cost-effective design with optimized system efficiency.

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-set-to-deliver-power-packed-integrated-drive-module-and-generator-module-with-dual-inverter-to-major-north-american-oem-302684892.html

SOURCE BorgWarner Inc.

FAQ

What did BorgWarner announce about its 800-volt iDM contract (BWA) on February 11, 2026?

BorgWarner announced a contract to supply an 800-volt secondary iDM and generator module to a major North American OEM, with production beginning in 2029. According to the company, the work covers REEV trucks and large-frame SUVs and introduces its next-generation Viper power module.

When will production of BorgWarner's integrated drive module for the OEM start and which vehicles will use it?

Production is scheduled to begin in 2029 and will be integrated into REEV trucks and large-frame SUVs. According to the company, the modules are designed for the automaker's range-extended electric vehicle platforms across those vehicle categories.

What are the key technical features of BorgWarner's 800V iDM and generator module announced February 11, 2026?

The 800V iDM pairs a torque-dense induction e-machine with an integrated gearbox; the generator uses a permanent-magnet machine with a dual inverter. According to the company, the iDM avoids permanent magnets while the generator uses next-generation Viper power-switch technology for density and efficiency.

How does BorgWarner's induction e-machine affect supply-chain resilience for BWA's new modules?

The induction e-machine eliminates the need for permanent magnets, reducing exposure to rare-earth sourcing constraints. According to the company, this design supports a more resilient supply chain while delivering high torque density in a compact package.

What is the significance of BorgWarner's next-generation Viper power module in this award (BWA)?

The Viper power module enables an optimized dual inverter design that is extremely power-dense and smaller in form factor. According to the company, this proprietary power switch technology helped deliver a cost-effective design with improved system efficiency.

What are the investor implications of BorgWarner's contract with a major North American OEM (BWA)?

The award demonstrates product relevance in high-voltage propulsion and secures a production program starting in 2029, but financial impact is unclear without disclosed terms. According to the company, the contract highlights its propulsion breadth and manufacturing capabilities in North America.