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BorgWarner Inc BWA

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

EVs and Hybrids Will Be 2 of 3 Autos Sold by 2030, Creating Opportunities Throughout the Value Chain

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

By 2030, electric vehicles (EVs) will be 30% of total autos sold globally, up from 3% in 2020. By 2025, EVs will become cheaper for entry-level cars and reach performance parity with internal combustion engines (ICEs). With sufficient charging infrastructure being built throughout China, Europe, and the United States, the second half of this decade will see rapid EV adoption. Hybrids will reach cost parity for light trucks. As a result, EVs and hybrids will be two of every three autos sold globally by 2030.

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Company Profile

Business Description

BorgWarner is a Tier I auto-parts supplier with four operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, cabin heaters, battery heaters, and battery charging. The e-propulsion and drivetrain group produces e-motors, power electronics, control modules, software, automatic transmission components, and torque management products. The two remaining operating segments are the eponymous fuel injector and aftermarket groups. The company's largest customers are Ford and Volkswagen at 13% and 11% of 2020 revenue, respectively. Geographically, Europe accounted for 35% of 2020 revenue, while Asia was 34% and North America was 30%.

Contact
3850 Hamlin Road
Auburn Hills, MI, 48326
T +1 248 754-9200
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 49,700

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