Detailed explanation of Moving Point Automobile: BorgWarner has continuously increased its new component business for electric vehicles through orders and acquisitions

U.S. auto supplier BorgWarner has announced more orders for electric vehicles, and the company is racing to increase its efforts in the new components of electric vehicles. The company is a leading global provider of clean and efficient technical solutions for hybrid electric vehicles. Its products help improve vehicle performance, propulsion efficiency, stability and air quality. The Company manufactures and sells these products worldwide, primarily to original equipment manufacturers ("OEMs") of light vehicles (passenger cars, sport utility vehicles ("SUVs"), vans and light trucks).

Recently, the company received a number of orders, including a complete 800-volt drive system order from a Luxury Electric Vehicle brand in China, and an order for electric truck components. Acquisitions are also an important strategy for BorgWarner.

The order business is recognized by the market

The 800V iDM220 has a power range from 160 to 300 kW. BorgWarner did not disclose how much power the customer's electric vehicle will have, as it also depends on the performance of the installed battery. To be sure, however, this is BorgWarner's first 800V iDM project worldwide. Production is expected to begin in 2023.

Another piece of news about BorgWarner's mystery customer is that the Chinese luxury electric car brand is already an existing customer. Dr. Stefan Demmerle, President and General Manager of BorgWarner Power Drive Systems, said: "We are delighted to continue our long-term partnership with this leading luxury electric vehicle manufacturer in the country. "The 800V iDM produces higher power density and system efficiency, providing OEMs such as our valued customers in China with mobility solutions with better drivability and longer range."

In addition to the 800 volt order, BorgWarner received its first order for its high-voltage eFan. The 40 kW system consists of a fan, electric motor and inverter and will be installed on battery-electric heavy-duty and long-haul trucks. The order comes from a major European OEM, and electric trucks equipped with high-voltage eFans are scheduled to be available by the end of 2024.

"We are a long-standing technology partner to this customer, and this business victory demonstrates continued confidence in BorgWarner's thermal management expertise," said Joe Fadool, President and General Manager of BorgWarner Emissions, Thermal and Turbine Systems. "Automakers face technically challenging emissions targets that are driving the transition in the transportation sector from fossil fuel internal combustion engines to CO2 neutralization drivetrains. Our eFan system will play a key role in the cooling strategy of high-pressure electric vehicles. ”

To date, developers of electric trucks have faced significant challenges, as special components such as fans and air conditioning compressors have not been able to meet the conventional requirements of trucks. The components available on the market are designed for the uptime of passenger cars, which are stationary for an average of 23 hours per day. A truck travels many hours on the road every day, so it runs more hours each year. Given these runtimes, components designed according to passenger car standards can quickly wear out – whether it's a compressor for a cab air conditioning system or a battery thermal management system such as a high-voltage eFan.

According to BorgWarner, the system is fully packaged for reliable long-term operation and is optimized for speeds below 3,000 rpm. With an operating voltage range of 650 to 850 volts, the eFan is said to be compatible with a variety of high-voltage on-board networks found in commercial vehicles.

Just yesterday, BorgWarner revealed that it had received an order from BMW for a high-pressure coolant heater (HVCH) for the i4 and iX. BorgWarner's HVCH regulates in-car heating and takes over the thermal management of the battery, making it an important part of the vehicle's charging behavior at lower external temperatures.

Acquisitions are also ongoing

BorgWarner announces acquisition of Songzheng Automotive Components for approximately RMB1.4 billion ,a business originally spun off from Songzheng shares. Includes equity transfer consideration of RMB1.1 billion and contingent consideration of not exceeding RMB300 million. The transaction was financed primarily by BorgWarner's cash balance.

Located in Tianjin, China, Songzheng Auto Parts designs and manufactures hair-issuing and centralized winding motors for light vehicles, and provides domestic OEMs with products based on its patent development. With around 400 employees today, its expertise in process design and automation has also helped it to establish good relationships with many major Chinese customers.

Tianjin Song is a domestic enterprise specializing in the research and development and manufacture of new energy flat wire motors, which can provide flat wire motor stators, rotors and other products, product voltage covers 80-950V, power covers 25-500KW, speed covers 6000-24000rpm, torque covers 100-700Nm.

The acquisition will further enhance BorgWarner's capabilities in vertical integration and scale, expand the product spectrum of light vehicle motors, and increase market reach.

Since 2008, BorgWarner has entered the new energy field in the big picture and completed the rapid layout through acquisitions. As a leading global supplier of components, BorgWarner achieved full-year 2021 revenue of $14.83 billion, up 12% year-over-year, and adjusted operating profit of $1.521 billion, up 54.6% year-over-year and margin of 10.3%.

In addition, BorgWarner has earlier announced the completion of its acquisition of AKASOL Inc. This strategic partnership will enhance the company's commercial vehicle and industrial electrification, thereby enabling BorgWarner to gain a strong position in the fast-growing market for battery modules for commercial vehicles and off-highway vehicles.

Frédéric Lissalde, President and CEO of BorgWarner, said: "We are delighted to have completed our acquisition of AKASOL and welcome our talented employees in Germany and the United States to BorgWarner. BorgWarner is looking for opportunities to further expand its electrification portfolio and is in the midst of a period of in-depth electrification industry transformation, and AKASOL is undoubtedly the perfect fit. ”