BorgWarner has secured major contracts with a global OEM to produce advanced wastegate turbochargers locally in Poland and Mexico, reinforcing its strategy to balance traditional combustion engine technology with growing electrification demands.
BorgWarner has been quite strategic lately, expanding its footprint in the turbocharger sector, especially for combustion engine vehicles, by clinching two major contracts with a global OEM—one covering Europe and the other North America. These deals are primarily about delivering advanced wastegate gasoline turbochargers, specifically designed for 1.0-liter compact cars and light commercial vehicles in Europe, and 3.0-liter gasoline hybrid powertrains in North America. Production for these is set to kick off in August 2027 and September 2028, respectively. The turbochargers will be produced at BorgWarner’s factories in Rzeszów, Poland, and Ramos, Mexico. Company representatives mention that localizing production in these regions is crucial—not just for boosting supply chain resilience but also for cutting down logistics costs. It’s practically a win-win when you're addressing these strategic markets directly, don’t you think?
Now, talking about the turbo technology itself—BorgWarner’s conventional wastegate turbochargers are built to last, pretty straightforward, and cost-effective. They’re known for their consistent performance, especially in small-displacement gasoline engines. The wastegate regulation system effectively manages boost pressure, which in turn boosts engine output and improves fuel efficiency, all without needing overly complex engineering tweaks or fancy new parts. It’s a pretty smart approach, really—it aligns with BorgWarner’s bigger picture of maintaining robust revenue streams from traditional powertrains while industry shifts gradually toward electrification, as industry analysts have pointed out.
Anyway, not just stopping there. Alongside these European and North American deals, BorgWarner has also recently extended its supply agreements with a prominent North American OEM. This OEM makes midsized and large SUVs and trucks with gasoline engines. These contracts run through 2028 and beyond, with a particular focus on wastegate turbochargers fitted with electrically actuated wastegate valves. Those actuators can fine-tune boost control with great precision, which helps improve fuel economy and reduce emissions. The turbochargers are lightweight, tough, and—here’s the kicker—they provide quick boost response and higher engine performance, all packed into a smaller, more efficient unit. The fact that BorgWarner has been working with this OEM for over ten years really shows a strong partnership—solid engineering collaboration and mutual trust, as company execs like to say.
But wait, it doesn’t stop at turbochargers. BorgWarner’s moving into the electric arena as well, securing quite a few orders from big Chinese OEMs for electric and hybrid propulsion systems. They’re talking about 400V high-voltage hairpin motors for hybrid rear-drive platforms, aiming to go into mass production by August 2025. Additionally, they’re developing electric motors for battery electric and plug-in hybrid vehicles, with some launches scheduled later this year. This just highlights how BorgWarner is diversifying, balancing their traditional internal combustion engine tech with the rising tide of electrification, which—honestly—is smart business, keeping them flexible across the spectrum of automotive powertrains.
On a broader scale, BorgWarner now runs 84 production and assembly sites all over the world, including key markets like the U.S., Germany, Poland, Mexico, and China. The company reported revenues around $14.2 billion in 2023 and ranks as one of the top 25 global automotive suppliers. CEO Joseph F. Fadool took over in February 2025, and he's been pushing the message that BorgWarner is all about delivering innovative mobility solutions—covering conventional, hybrid, and electric vehicles alike.
So, when you look at these latest turbocharger deals, they really underscore BorgWarner’s strategy of diversification and steady positioning in the evolving auto supply chain. Focused on local production facilities and leveraging proven turbo technologies, the company aims to meet OEM needs while boosting operational efficiencies and reducing supply chain risks. It’s a smart strategy, especially now as electrification continues to reshape the automotive scene, because staying flexible is more critical than ever to maintain a competitive edge and keep their financial outlook solid through the late 2020s.
Source: Noah Wire Services