BorgWarner

BorgWarner Inc.

Company type	Public
Industry	Automotive, e-mobility
Founded	1928
Founder	Merger of Morse Equalizing Spring Company, Borg & Beck, Marvel-Schebler, Long Manufacturing, Warner Gear, Mechanics Universal Joint
Headquarters	Auburn Hills, Michigan , United States
Area served	Worldwide (92 sites in 24 countries)
Key people	Joseph F. Fadool (CEO since February 2025)
Products	Automotive components for gasoline-powered vehicles, hybrids, electric vehicles; air management, e-propulsion, and drivetrain segments
Revenue	US$14.2 billion (2023)
Number of employees	Approximately 39,900 (2023)
Website	www.borgwarner.com

BorgWarner Inc. is a leading American supplier in the automotive and e-mobility sectors, with its main office located in Auburn Hills, Michigan. As of 2023, the company maintains 92 operational sites across 24 nations, generating revenue of US$14.2 billion and employing close to 39,900 individuals. It stands among the top 25 largest automotive suppliers worldwide. Since February 2025, Joseph F. Fadool has held the position of CEO, guiding the company's global operations and strategic expansion.

Early origins

The inception of Borg-Warner Corporation dates back to 1928, when it was established through the merger of multiple manufacturers such as Morse Equalizing Spring Company (established 1880), Borg & Beck, Marvel-Schebler, Long Manufacturing, Warner Gear, and Mechanics Universal Joint. These entities were known for producing automotive components including timing chains, radiators, and manual transmissions.

1930–1950: Growth and technological breakthroughs

Throughout the 1930s and 1940s, BorgWarner was at the forefront of automotive innovation with developments like the synchromesh transmission, roller chains, and a self-contained overdrive transmission that was adopted by Chrysler and other carmakers. The company also launched its Automotive Service Parts Division and commissioned the renowned Borg-Warner Trophy for the Indianapolis 500. Its expansion efforts included establishing Stieber Rollkupplung GmbH in Munich (now BorgWarner GmbH) and advancing automatic transmission components and transfer cases. By mid-century, BorgWarner had introduced the lock-up torque converter and collaborated with Studebaker and Ford on the Ford-O-Matic three-speed automatic transmission. Automotive sales exceeded $200 million during this period.

1950s–1970s: Global growth and product diversification

Between the 1950s and 1970s, BorgWarner broadened its international presence by opening plants in Brazil, Canada, England, Mexico, Ireland, Arkansas, and New York. The company acquired Australian transmission manufacturer Coote & Jurgenson in 1957 and integrated Brummer Seal Company into its Spring Division. Its entry into Asia involved joint ventures such as NSK-Warner and Tsubakimoto-Morse in Japan, later forming Aisin-Warner focused on automatic transmissions. Other acquisitions included Nu-Era Gear in Massachusetts (1970) and merging Marvel-Schebler with Tillotson Carburetor (1971). Notable innovations during this era included full-time four-wheel drive transfer cases (1973), the T-50 five-speed transmission, and continuously variable transmissions designed for commercial vehicles. While expanding into other sectors, automotive products consistently accounted for over half of BorgWarner’s revenue.

1980s: Streamlining operations

By 1979, BorgWarner's sales had climbed to $2.7 billion due to improvements in T-4 and T-5 manual transmissions along with new lightweight transfer cases. In 1981, the company underwent restructuring by divesting Morse Industrial and its automotive service parts businesses. By 1984, all automotive activities were unified under Borg-Warner Automotive Inc., which posted sales above $1 billion with a workforce nearing 10,000 employees. That year also marked the production milestone of the one-millionth T-5 transmission. The organization simplified its divisions by renaming Warner Gear to Transmission Systems, Borg & Beck to Clutch Systems, and Marvel-Schebler to Control Systems. International expansion included establishing sales offices in Frankfurt, São Paulo, Seoul, and Tokyo as well as securing a licensing deal with Nanjing Motor Works in Beijing. A complex financial reorganization in 1987 dissolved the original Borg-Warner Corporation; however, a new entity named BorgWarner Corporation was formed with Borg-Warner Automotive Inc. as its subsidiary (later renamed Borg-Warner Security Corporation). Around 1990, BorgWarner introduced transfer case technology for General Motors’ heavy-duty and all-wheel-drive vehicles and developed the 1354 transmission for Ford Explorer and Ranger models — including the 'touch drive' variant for F-series trucks.

1990s: Expansion and Advancement

At the beginning of the 1990s, Ford established an exclusive supply contract with BorgWarner. The T-56 six-speed manual transmission was adopted as the standard for Chrysler Vipers and the latest Ford Mustang models, while the company broadened its international presence in markets such as Japan and China. In 1993, Borg-Warner Automotive Inc. separated from Borg-Warner Security Corporation to operate as an independent business. By June 1996, BorgWarner had acquired Holley Automotive, Coltec Automotive, and Performance Friction Products from Coltec Industries Inc., thereby incorporating air induction systems, throttle bodies, electric air pumps, and oil pumps into its range of products. Later that year, the firm divested its North American manual transmission division to Transmisiones y Equipos Mecanicos S.A. de C.V., based in Mexico. In 1998, BorgWarner entered the turbocharger sector by purchasing the German company Kühnle, Kopp & Kausch AG, which was subsequently renamed 3K-Warner Turbosystems GmbH. The following year in March 1999, turbocharger operations were further expanded through the acquisition of Kuhlman Corporation; after divesting two business units that same year, Schwitzer, Inc.—a manufacturer specializing in heavy-duty steel fuel tanks, fan drives, and diesel engine turbochargers—was merged into 3K-Warner.

2005–2015: Strategic Global Acquisitions

In 2005, BorgWarner shifted its global headquarters from Chicago to the Detroit metropolitan area. From 2006 through 2014, the company grew its worldwide presence by establishing production sites in countries including South Korea, France, Germany, China, Hungary, Poland, India, Brazil, Portugal, Mexico, and Thailand. During this timeframe, BorgWarner actively pursued acquisitions aimed at broadening its product portfolio and increasing market penetration.

Significant acquisitions during this period included obtaining a controlling interest in Beru AG—a German supplier specializing in diesel cold-start technology and ignition systems—in 2005. In 2006, BorgWarner acquired European transmission and engine control product lines from Eaton Corporation located in Monaco. The company enhanced its ignition technology segment by acquiring EcoFlash from Etatech Inc. in 2009. Strengthening its exhaust gas recirculation (EGR) expertise came with the purchase of Spanish firm Dytech Ensa in 2010.

The acquisition of Sweden-based Haldex Traction Systems in 2011 introduced the advanced Haldex clutch system to BorgWarner’s offerings, bolstering its position within four-wheel-drive passenger vehicle components. In 2014, acquiring German manufacturer Gustav Wahler GmbH & Co. KG expanded the company’s production capabilities for EGR valves and coolant control valves. The 2015 purchase of Remy International, Inc., a producer of rotating electrical parts, was combined with TorqTransfer Systems to create PowerDrive Systems.

These acquisitions were integral to BorgWarner’s strategy to diversify product lines and services on a global scale while strengthening its competitive edge through expanded technological innovation and worldwide operational reach.

2017–present: Conversion to new propulsion technologies

In 2017, BorgWarner expanded its portfolio by acquiring Sevcon Inc., a UK-based company specializing in microprocessor controls for electric vehicles. The firm also made strategic investments in Autotech Ventures to gain access to emerging startups in ground transportation. This was followed in 2018 by collaborations with Plug and Play and Franklin Venture Partners, broadening its presence within Silicon Valley’s mobility and propulsion technology sectors. In 2019, BorgWarner further strengthened its electric vehicle offerings through the acquisitions of Rinehart Motion Systems and AM Racing, as well as the establishment of the joint venture Romeo Systems, Inc.

The acquisition of Delphi Technologies in 2020 enhanced BorgWarner’s expertise in power electronics, software development, and calibration services. The company continued to grow its electric vehicle capabilities in 2021 by purchasing five additional companies, including the German battery producer Akasol. In 2022, BorgWarner incorporated Santroll Automotive Components and Rhombus Energy Solutions into its operations, followed by the addition of Drivetek AG from Switzerland, a manufacturer specializing in inverters and power electronics.

In July 2023, BorgWarner separated its fuel parts and aftermarket divisions into PHINIA, an independent publicly traded entity listed on the New York Stock Exchange. This move allowed BorgWarner to concentrate more intensively on technologies related to electric vehicle drivetrains.

Business operations

Since becoming a Delaware corporation in 1987, BorgWarner Inc. has operated manufacturing plants throughout Europe, the Americas, and Asia. As a principal original equipment supplier to leading automotive OEMs worldwide, BorgWarner employed around 52,000 individuals in 2022 and reported revenues of US$15.8 billion. Under the leadership of CEO Frédéric Lissalde since August 2018, the company’s focus has shifted following the 2023 spin-off of its fuel parts and aftermarket businesses to concentrate on electric vehicle drivetrain technologies. Its operations are organized into air management, e-propulsion, and drivetrain segments.

Products

BorgWarner designs and produces components for traditional gasoline-powered vehicles, hybrids, and electric vehicles on a global scale. Its key clientele includes OEMs manufacturing light vehicles such as passenger cars, SUVs, vans, and light trucks, as well as commercial vehicles including medium- and heavy-duty trucks and buses, along with off-highway machinery used in agriculture and construction. Additionally, the company supplies tier-one vehicle systems providers, underscoring its extensive influence across various automotive markets.

Social engagement

BorgWarner has maintained a longstanding relationship with the Indianapolis 500 by providing EFR turbochargers for all vehicles competing in the NTT IndyCar Series since 2012. The company has also been the sponsor of the prestigious Borg-Warner Trophy presented annually to the winner of the Indianapolis 500 since 1936.

In 2017, BorgWarner established a global partnership with SOS Children's Villages, actively supporting key initiatives worldwide with involvement from both management and employees. This partnership highlights the company’s dedication to corporate social responsibility initiatives.