BorgWarner Wins New Electric Motor Business with Major Chinese OEM

Rhea-AI Summary

BorgWarner (NYSE:BWA) has secured a significant contract to supply electric motors to a major Chinese OEM, strengthening its position in China's NEV market. The awarded motor features a platform-based design compatible with all NEV types and incorporates BorgWarner's innovative ultra-short hairpin welding process for improved space efficiency.

The company is expanding its manufacturing capabilities with a new facility in Wuhu, China, which will feature intelligent manufacturing lines capable of producing multiple motor platforms. This expansion aims to meet the growing demand in China's NEV market and enhance motor production capacity.

News Market Reaction

+6.57% 2.8x vol

12 alerts

+6.57% News Effect

+2.7% Peak Tracked

-3.0% Trough Tracked

+$502M Valuation Impact

$8.14B Market Cap

2.8x Rel. Volume

On the day this news was published, BWA gained 6.57%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.7% during that session. Argus tracked a trough of -3.0% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $502M to the company's valuation, bringing the market cap to $8.14B at that time. Trading volume was elevated at 2.8x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

• Platform-based design is compatible with all types of new energy vehicles (NEV)
• Ultra-short welding process enhances space efficiency
• New Wuhu plant nearing operation, expands motor capacity in China

AUBURN HILLS, Mich., July 31, 2025 /PRNewswire/ -- BorgWarner has secured a new contract with a major Chinese original equipment manufacturer (OEM) for its electric motors, marking a significant win in China's NEV market. The awarded motor features a platform-based design, compatible across a full range of NEV applications, including battery electric and hybrid models. It also incorporates BorgWarner's innovative ultra-short hairpin welding process, which reduces end-turn height for a more compact structure and significantly improves space utilization.           

"We are pleased with the continued progress of our electric motor business in China. Our partnership with this customer spans nearly a decade," said Dr. Stefan Demmerle, Vice President of BorgWarner Inc. and President and General Manager, PowerDrive Systems. "BorgWarner remains committed to delivering smarter, more efficient motor solutions as we work together toward an electrified future."

As China's NEV market rapidly grows, BorgWarner's motor products, driven by strong technological and process advantages, are consistently gaining new business. To meet rising demand, BorgWarner is expanding its motor operations. In early 2025, the company signed a memorandum of understanding with the Wuhu municipal government to establish a new manufacturing base for electric drive systems. The new facility, nearing operation, will feature intelligent manufacturing lines capable of producing multiple motor platforms on shared lines, increasing motor capacity and laying a solid foundation for scaled delivery.

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.