AUBURN HILLS, Mich. – BorgWarner Inc. has announced $2.5 billion of expected net new powertrain business for 2012 through 2014, a 9 percent increase over its previous three-year net new business.
 
The company says demand for its environmentally friendly technologies, such as gasoline and diesel turbochargers, dual-clutch transmission technology, engine timing systems and emissions products, is expected to continue to drive strong growth. The new business is sourced around the globe and includes programs with nearly every major automaker in the world, BorgWarner says.
 
"Improving fuel economy, lowering emissions and enhancing the driving experience remain key objectives for automakers around the world," said Timothy Manganello, chairman and CEO. "BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies in a broad range of products that address these needs. Over the next three years, we believe our fuel-efficient technologies will be in high demand as the industry continues to implement advanced powertrain strategies."
 
Of the total new business, approximately 80 percent is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems, variable cam timing modules and thermal systems. The remaining approximate 20 percent is expected from drivetrain-related products including the company's fuel-efficient DualTronic transmission technology and its traditional automatic transmission and all-wheel drive technologies.
 
"We have significantly outpaced the growth of the industry by developing fuel-efficient technologies that meet the needs of the global market," Manganello continued. "We expect this trend to continue. The European market remains the leader in the adoption of new powertrain technology, and Europe accounts for 45 percent of our expected new business. New business sales in Asia are expected to account for about 35 percent of the total by the end of the period, including 22 percent in China as our sales to the world's fastest-growing market continues to accelerate. The top 25 customers of our three-year net new business include eight Chinese domestic original equipment manufacturers. Approximately 20 percent of the anticipated new business over the three years is in the Americas."
 
"Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner. The top 25 customers of our three-year net new business include six commercial vehicle OEMs. Approximately 18 percent of the expected new business is related to the commercial vehicle market."
 
Turbochargers account for about 50 percent of the company's net new business, with strong growth in the commercial vehicle, diesel passenger car and gasoline passenger car markets. Turbocharging is a key strategy employed by vehicle manufacturers to address the issues of fuel efficiency and emissions reduction while maintaining vehicle performance. The market for turbochargers is expected to grow approximately 50 percent over the next five years, from nearly 29 million units today to over 43 million by 2016, according to BorgWarner.
 
Another 7 percent of the new business is tied to the company's dual-clutch technology. The technology provides the fuel-efficiency and fun-to-drive characteristics of a manual transmission with the convenience and smooth shifting of an automatic. The number of dual-clutch transmissions in the market is expected to grow over 200 percent over the next five years to approximately 8 million units by 2016, the company noted.
 
The company's forecast for the U.S. Dollar to Euro exchange rate for new business over the three-year period is $1.35, up from $1.32 for its previous three-year net new business.