Earnings Report Released | BorgWarner’s “Gathering Momentum. Forward” Strategy Achieves Remarkable Results
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At the beginning of 2023, auto parts supplier BorgWarner delivered an impressive financial report, with the company’s 2022 revenue and profit exceeding expectations.
Satisfactory performance growth
On February 9, BorgWarner held a press conference at its headquarters in Auburn Hills, announcing BorgWarner’s 2022 financial report revenue: annual sales reached US$15.801 billion, a year-on-year increase of 6.5%. BorgWarner also expects its electric vehicle sales to grow sharply to $1.5 billion to $1.8 billion in 2023 from $870 million in 2022. Based on new business authorizations and executions announced to date, the company is on track to generate approximately $4.3 billion in electric vehicle sales by 2025.
Achieve environmental goals
Since BorgWarner entered the Chinese market in 1993, it has always taken “building a cleaner, energy-efficient world as its vision, and through multiple efforts, has achieved remarkable results in the industry. BorgWarner’s 2022 Sustainability Report ” also comprehensively introduced the updated sustainable development strategy, and solemnly promised to join hands with industry partners to bring advanced sustainable development technology to a clean and energy-saving world, and to live in harmony with nature.
In order to continuously reduce carbon emissions and jointly achieve the goal of zero climate load, BorgWarner expects to achieve carbon neutrality by 2035, and at the same time set a new phased goal to make the scope 1 and scope 2 absolute by 2030. Reduce greenhouse gas (GHG) emissions by 85% compared to 2021 emissions. BorgWarner is also developing science-based targets initiative GHG emission reduction targets.
According to the financial report, in December 2022, BorgWarner officially submitted the Scope 3 target and the previously announced goal of achieving an 85% reduction in absolute Scope 1 and Scope 2 emissions by 2030 (based on 2021) to the Validation by the Science Based Targets Initiative (SBTi).
Accelerate the pace of acquisitions
Since the company released its strategy of gaining momentum and moving forward, BorgWarner has moved towards the set goal and delivered remarkable results: the acquisition of a company with a value of 2 billion US dollars with core electrification technology has been completed 65%, about $1.3 billion. BorgWarner has acquired German AKASOL Battery, Tianjin Songzheng Motor, North American Rhombus Charging System, Hubei Chasing Sun Electric and Swiss Drivetek power electronics solution provider, etc.
Currently, BorgWarner is achieving its electrification transformation goals through self-development and strategic acquisitions. Against the backdrop of deep changes in the automotive industry, it has become inevitable for relevant supply chain companies to transform towards electrification. As the world’s leading provider of power system solutions, BorgWarner has also targeted electrification for its future development. In 2021, BorgWarner released the strategy of “gathering momentum and moving forward”, pointing out that by 2030, the proportion of electric vehicle business will increase from the current 3% to 45%. For an auto parts giant with a complex system, it is not easy to achieve this big digital jump. In addition to independent innovation, BorgWarner has also achieved electrification through rapid mergers and acquisitions. Through the acquisition of enterprises with strong professional strength and brand influence, it has made great progress in terms of industry status and electrification strategy development.
From the latest financial report released by BorgWarner, it can be seen that under the background of the overall sluggish market of the global automobile industry chain affected by the epidemic, it has achieved stable growth, demonstrating its strong resilience. With the recovery of the global new energy market, I believe that BorgWarner, the industry leader, will bring us even greater surprises.
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