BorgWarner Inc. and Consolidated Subsidiaries is a Delaware corporation incorporated
in 1987. We are a leading global supplier of highly engineered automotive systems
and components primarily for powertrain applications. Our products help improve
vehicle performance, fuel efficiency, stability and air quality. These products
are manufactured and sold worldwide, primarily to original equipment manufacturers
(“OEMs”) of light vehicles (passenger cars, sport-utility vehicles
("SUVs"), vans and light trucks). The Companys products are also
sold to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks
and buses) and off-highway vehicles (agricultural and construction machinery
and marine applications). We also manufacture and sell our products to certain
Tier One vehicle systems suppliers and into the aftermarket for light, commercial
and off-highway vehicles. The Company operates manufacturing facilities serving
customers in Europe, Asia, the Americas and Africa and is an original equipment
supplier to every major automotive OEM in the world.
The Engine Segment develops and manufactures products to improve fuel economy,
reduce emissions and enhance performance. Increasingly stringent regulation
of, and consumer demand for, better fuel economy and emissions performance are
driving demand for the Engine Segments products in gasoline and diesel engines
and alternative powertrains. The Engine Segments products include: turbochargers,
timing systems, emissions systems, thermal systems, thermostats, diesel cold
start and gasoline ignition technology.
The Drivetrain Segment develops and manufactures mechanical products for automatic
transmissions and all-wheel drive ("AWD") vehicles and rotating electrical
components for light and commercial vehicle OEMs and the aftermarket. Precise
controls, better response times and minimal parasitic losses, all of which improve
fuel economy and vehicle performance, are the core design features of the Drivetrain
Segments mechanical product portfolio, while meeting the demands of increasing
vehicle electric loads, improved fuel efficiency, reduced weight and lowered
electrical and mechanical noise are the core design features of its rotating
electrical components portfolio. The Drivetrain Segments mechanical products
include friction, mechanical and controls products for automatic transmissions
and torque management products for AWD vehicles, and its rotating electrical
components include starter motors, alternators and hybrid electric motors.
The Company conducts advanced Engine and Drivetrain research at the reporting
segment level. This advanced engineering function looks to leverage know-how
and expertise across product lines to create new Engine and Drivetrain systems
and modules that can be commercialized. This function manages a venture capital
fund that was created by the Company as seed money for new innovation and collaboration
across businesses.
In addition, each of the Companys businesses within its two reporting segments
has its own research and development (“R&D”) organization, including
engineers and technicians, engaged in R&D activities at facilities worldwide.
The Company also operates testing facilities such as prototype, measurement
and calibration, life cycle testing and dynamometer laboratories.
By working closely with the OEMs and anticipating their future product needs,
the Companys R&D personnel conceive, design, develop and manufacture new
proprietary automotive components and systems. R&D personnel also work to
improve current products and production processes. The Company believes its
commitment to R&D will allow it to continue to obtain new orders from its
OEM customers.
Our operations are directly related to the automotive industry. Consequently,
we may experience seasonal fluctuations to the extent automotive vehicle production
slows, such as in the summer months when many customer plants typically close
for model year changeovers or vacations. Historically, model changeovers or
vacations have generally resulted in lower sales volume in the third quarter.