BorgWarner Secures Strategic Turbocharger Business for Major Global OEM's Compact and Light Commercial Vehicles
BorgWarner (NYSE:BWA) has secured two major turbocharger contracts with a global OEM for next-generation vehicles in Europe and North America. The first contract involves supplying wastegate gasoline turbochargers for 1.0-liter engines in European compact and light commercial vehicles, with production starting in August 2027. The second contract covers high-performance turbochargers for 3.0-liter gasoline hybrid applications in North America, beginning production in September 2028.
The company will manufacture these turbochargers at its facilities in Rzesz贸w, Poland and Ramos, Mexico, emphasizing localized production. The wastegate turbocharger technology offers durability, competitive pricing, and consistent performance for small-displacement gasoline engines.
BorgWarner (NYSE:BWA) ha ottenuto due importanti contratti per turbocompressori con un OEM globale per veicoli di nuova generazione in Europa e Nord America. Il primo contratto prevede la fornitura di turbocompressori a wastegate per motori a benzina 1.0 litri destinati a veicoli compatti e veicoli commerciali leggeri europei, con inizio produzione previsto per agosto 2027. Il secondo contratto riguarda turbocompressori ad alte prestazioni per applicazioni ibride a benzina da 3.0 litri in Nord America, con produzione che partir脿 a settembre 2028.
L鈥檃zienda produrr脿 questi turbocompressori presso gli stabilimenti di Rzesz贸w, Polonia, e Ramos, Messico, sottolineando l鈥檌mportanza della produzione localizzata. La tecnologia del turbocompressore a wastegate garantisce durabilit脿, prezzi competitivi e prestazioni costanti per motori a benzina di piccola cilindrata.
BorgWarner (NYSE:BWA) ha asegurado dos importantes contratos de turbocompresores con un fabricante global para veh铆culos de pr贸xima generaci贸n en Europa y Norteam茅rica. El primer contrato implica el suministro de turbocompresores de gasolina con v谩lvula wastegate para motores de 1.0 litros en veh铆culos compactos y comerciales ligeros europeos, con inicio de producci贸n en agosto de 2027. El segundo contrato cubre turbocompresores de alto rendimiento para aplicaciones h铆bridas de gasolina de 3.0 litros en Norteam茅rica, comenzando la producci贸n en septiembre de 2028.
La empresa fabricar谩 estos turbocompresores en sus instalaciones de Rzesz贸w, Polonia, y Ramos, M茅xico, enfatizando la producci贸n localizada. La tecnolog铆a de turbocompresores con v谩lvula wastegate ofrece durabilidad, precios competitivos y rendimiento constante para motores de gasolina de peque帽a cilindrada.
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BorgWarner (NYSE:BWA) a d茅croch茅 deux contrats majeurs de turbocompresseurs avec un constructeur automobile mondial pour des v茅hicules de nouvelle g茅n茅ration en Europe et en Am茅rique du Nord. Le premier contrat concerne la fourniture de turbocompresseurs essence 脿 wastegate pour des moteurs 1,0 litre destin茅s aux v茅hicules compacts et utilitaires l茅gers europ茅ens, avec un d茅marrage de production en ao没t 2027. Le second contrat porte sur des turbocompresseurs haute performance pour des applications hybrides essence 3,0 litres en Am茅rique du Nord, avec une production d茅butant en septembre 2028.
L鈥檈ntreprise fabriquera ces turbocompresseurs dans ses usines situ茅es 脿 Rzesz贸w, en Pologne, et 脿 Ramos, au Mexique, mettant l鈥檃ccent sur la production locale. La technologie des turbocompresseurs 脿 wastegate offre durabilit茅, prix comp茅titifs et performances constantes pour les moteurs essence de petite cylindr茅e.
BorgWarner (NYSE:BWA) hat zwei bedeutende Turbolader-Vertr盲ge mit einem globalen OEM f眉r Fahrzeuge der n盲chsten Generation in Europa und Nordamerika abgeschlossen. Der erste Vertrag umfasst die Lieferung von Wastegate-Benzinturboladern f眉r 1,0-Liter-Motoren in europ盲ischen Kompakt- und leichten Nutzfahrzeugen, mit Produktionsstart im August 2027. Der zweite Vertrag betrifft Hochleistungs-Turbolader f眉r 3,0-Liter-Benzin-Hybridanwendungen in Nordamerika, mit Produktionsbeginn im September 2028.
Das Unternehmen wird diese Turbolader in seinen Werken in Rzesz贸w, Polen, und Ramos, Mexiko, fertigen und legt dabei Wert auf lokale Produktion. Die Wastegate-Turbolader-Technologie bietet Langlebigkeit, wettbewerbsf盲hige Preise und konstante Leistung f眉r kleinvolumige Benzinmotoren.
- None.
- Long lead time to production start (2027-2028)
- Continued focus on combustion engine technology amid industry shift to EVs
Insights
BorgWarner secures strategic turbocharger contracts, expanding market share as competitors exit the combustion engine space.
BorgWarner has made a significant strategic move by securing two major turbocharger contracts with a global OEM, positioning itself to capture market share as competitors retreat from combustion engine technologies. The company will supply wastegate turbochargers for 1.0-liter engines in European compact and light commercial vehicles starting August 2027, and high-performance turbochargers for 3.0-liter gasoline hybrid applications in North America beginning September 2028.
This represents a shrewd counter-cyclical strategy as the industry transitions toward electrification. While many suppliers are divesting from internal combustion engine components, BorgWarner is selectively investing where competitive intensity is decreasing, allowing it to secure favorable terms with OEMs still requiring these technologies. This approach creates a two-pronged value proposition: maintaining cash flow from traditional technologies while supporting the company's broader transition to electrification.
The localized manufacturing approach - with production in Poland for European markets and Mexico for North American applications - aligns with growing OEM preferences for regional supply chains that minimize logistics costs and supply chain vulnerabilities. These wins demonstrate BorgWarner's ability to leverage its technical expertise in conventional powertrains while navigating the complex transition period where combustion, hybrid, and fully electric technologies will coexist.
For investors, these contracts provide revenue visibility extending into the late 2020s, indicating that despite the EV transition, BorgWarner's conventional powertrain components will continue generating substantial cash flow. This balanced portfolio approach helps mitigate transition risks while maintaining strong relationships with global OEMs that will be crucial for future business in electrified powertrains.
- Expands market share in
Europe andNorth America through conquest business - Delivers cost-effective, durable wastegate turbocharger for 1.0L and 3.0L gasoline engines
- Supports long-term combustion engine supply with localized manufacturing
"This award underscores our ability to win in highly contested markets by offering reliable, cost-effective solutions and long-term supply commitments," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "It reflects our strategic focus on supporting global OEMs with combustion engine technologies while others exit the space."
BorgWarner's wastegate turbocharger technology offers a a robust and efficient solution designed for small-displacement gasoline engines. It utilizes a conventional wastegate mechanism to manage boost pressure, delivering consistent engine performance and fuel economy without requiring complex enhancements. The product stands out due to exceptional durability, competitive pricing, and long-term availability鈥攌ey advantages in a consolidating supplier landscape. Manufactured at BorgWarner's facilities in Rzesz贸w,
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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