BorgWarner to split its fuel and aftermarket systems segments

International. Once finalized, the company would achieve its 2025 readiness goal as part of the "advanced loading" strategy.

BorgWarner has announced its intention to execute a tax-free spin-off of its fuel systems and aftermarket segments into a separate, publicly traded company (NewCo).

"BorgWarner's board of directors believes that a strategic spin-off of our fuel systems and aftermarket segments would be the best way forward to further the transformation of our company," said Alexis P. Michas, non-executive chairman of BorgWarner's board of directors.

"The planned separation supports the optimization of our combustion portfolio and the advancement of our electrification journey, while NewCo could pursue growth opportunities in alternative fuels, such as hydrogen, and in the aftermarket."

"Ultimately, we expect the planned separation to maximize shareholder value by having two focused and strong companies, each pursuing their respective strategies," Michas said.

"We are incredibly proud of the progress we are making in executing our 'Charging Forward' strategy," said BorgWarner President and CEO Frédéric B. Lissalde.

"At the same time, our electric vehicle (EV) business is accelerating. We believe we are already on track to exceed our 2025 organic EV sales target and, in the past two years, we have announced or completed four acquisitions," Lissalde stressed.

"The planned separation of our fuel systems and aftermarket segments would be an important next step in furthering our shift to electric vehicles and advancing our vision of a clean and energy-efficient world, while at the same time creating a new focused entity with strong finances to support its future." Remarked.