BorgWarner pushes further into the China EV market

By Tomi Kilgore

E-mobility and auto components maker forms JV with commercial vehicle parts supplier

BorgWarner Inc. is making a further push into China's electric-vehicle market, as it announced Wednesday the forming a joint venture with commercial EV parts supplier Shaanxi Fast Auto Group.

"By jointly working on a high-voltage inverter application for high efficiency vehicles such as heavy-duty trucks and off-road vehicles, this joint venture will support our business growth for power electronics in the electrified commercial vehicle market," said Stefan Demmerle, president of BorgWarner PowerDrive Systems.

The e-mobility and auto parts maker's stock (BWA) was still inactive in the premarket.

The JV follows other recent announcements of moves in the China EV maker.

In August, the company said it would supply e-motor parts to a "leading" original equipment manufacturer (OEM) in China for use in hybrid vehicles. In May, the company said it would begin providing high-voltage hairpin e-motors to a China-based automaker.

And in March, BorgWarner announced the completion of the acquisition of Hubei Surpass Sun Electric's electric vehicle charging business, adding an EV charging presence in China.

BorgWarner's stock has lost 14.6% over the past three months, while the Global X Autonomous & Electric Vehicles ETF DRIV has tacked on 1.4% and the S&P 500 index SPX has gained 9.1%.

-Tomi Kilgore

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01-10-24 0734ET

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