BorgWarner to Supply Premium European OEM with Integrated Drive Module for Hybrid Range Extended Vehicle
Rhea-AI Summary
BorgWarner (NYSE:BWA) won a program award to supply an 800V Integrated Drive Module (iDM) to a premium European OEM for a Range Extended Electric Vehicle, with mass production scheduled to begin in 2029. The iDM pairs a single electric machine for both generator and propulsion functions and supports an all-wheel-drive mode.
The system integrates an inverter with next-generation Viper power switches and dual-side cooled power modules, targeting high electrical performance and thermal management for demanding high-voltage, high-current applications. BorgWarner cites global collaboration and local manufacturing to support the program.
Positive
- Program award to a premium European OEM with mass production in 2029
- Integrated single-electric-machine design combining generator and drive functionality
- Supports 800V architecture and optional all-wheel-drive mode
- Inverter uses next-generation Viper power switches and dual-side cooled modules
Negative
- No contract value or revenue guidance disclosed for the program award
- Mass production not scheduled until 2029, delaying near-term revenue realization
News Market Reaction
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
Market Reality Check
Peers on Argus
BWA is up 2.35% with strong volume, while key peers show smaller, mixed moves (e.g., LKQ +2.34%, LEA -0.84%). This points to a more company-specific reaction than a broad auto parts rally.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | Quarterly dividend | Positive | -0.3% | Declared <b>$0.17</b> per-share cash dividend payable in March 2026. |
| Jan 23 | Reputation ranking | Positive | -0.4% | Named to Fortune’s 2026 World’s Most Admired Companies list, ranking 3rd in category. |
| Nov 20 | Motorsport branding | Positive | -5.0% | Announced Alex Palou as the <b>112th</b> face on the Borg-Warner Trophy after 2025 Indy 500 win. |
| Nov 13 | Quarterly dividend | Positive | -1.3% | Declared recurring quarterly cash dividend of <b>$0.17</b> per share for Dec 2025 payment. |
| Nov 04 | Employer recognition | Positive | +0.6% | Named among Forbes America’s Best Employers for Engineers 2026, second consecutive year. |
Recent positive corporate and dividend news has often seen flat-to-negative next-day moves, suggesting limited immediate upside reaction to similar announcements.
Over the last several months, BorgWarner’s news flow has focused on dividends and corporate recognition. Dividend declarations on Nov 12, 2025 and Feb 4, 2026 coincided with modest negative price reactions. Positive reputation milestones, such as inclusion in Forbes’ engineering employer list and Fortune’s Most Admired Companies in 2026, saw mixed trading. Against this backdrop, today’s new EV integrated drive module award extends the company’s electrification narrative beyond prior branding and dividend updates.
Market Pulse Summary
The stock surged +22.4% in the session following this news. A strong positive reaction aligns with BorgWarner securing a new 800V integrated drive module award for a premium European OEM’s range-extended EV program. The stock already traded near its 52-week high at $53.98, above the $40.6 200-day MA, suggesting an established uptrend. However, past positive news often saw limited follow-through, so investors have historically faced the risk that enthusiasm for announcements could fade after initial spikes.
Key Terms
integrated drive module technical
range extended electric vehicle technical
inverter technical
dual-mass flywheel technical
power electronics technical
electrified propulsion technical
AI-generated analysis. Not financial advice.
- Highly integrated drive module solution for hybrid range extended powertrain applications
- Innovative design with single electric machine for generating and propulsion
- Lightweight design and high performance enabled by advanced system integration
The iDM is a highly integrated system incorporating BorgWarner's innovative single-electric-machine design with generator and drive functionality. The system works in conjunction with key components, including an inverter, two clutches, dual-mass flywheel, and is system-level paired with the internal combustion engine of the customer. In addition to energy-efficient generator functionality, an all-wheel-drive mode can be used when required. Combining two major REEV functions into a single product is extremely beneficial to the vehicle architecture. The inverter integrates BorgWarner's next-generation Viper power switches and dual-side cooled power module technology. Specifically developed for high-performance electric drive applications, BorgWarner's platform is expected to deliver excellent electrical performance and thermal management capabilities, supporting the demanding high-voltage and high-current operating requirements.
"Securing this program award underlines BorgWarner's strength in electric drive technology and system integration," said Dr. Stefan Demmerle, Vice President of BorgWarner Inc. and President and General Manager, PowerDrive Systems. "With the
With deep expertise in electrified propulsion and full-stack in-house capabilities spanning electric motors, drivelines, power electronics, software/controls, and system integration, BorgWarner delivers flexible and highly integrated solutions tailored to customer needs. Supported by proven product quality, strong local manufacturing capabilities, and close collaboration with customers, the company remains committed to advancing electrification technologies and supporting the continued development of the global new energy vehicle market.
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: the possibility that the our integrated drive module system for range extended vehicles will not achieve its intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential 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; 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 its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on 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 Inc.
FAQ
What did BorgWarner announce about the 800V iDM for its European OEM program (BWA)?
How does the BorgWarner iDM design combine generator and propulsion functions for BWA customers?
What technical features of the iDM does BorgWarner highlight for high-voltage applications?
When will BorgWarner's iDM enter mass production for the European OEM (BWA)?
What does the BorgWarner iDM program mean for BWA shareholders in the near term?
