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    BorgWarner Extends Transfer Case Business with North American OEM

    10/31/24 8:00:00 AM ET
    $BWA
    Auto Parts:O.E.M.
    Consumer Discretionary
    Get the next $BWA alert in real time by email
    • Company to supply two types of two-speed transfer cases: Electro-Mechanical On-Demand (EMOD) and Electric Shift-on-the-Fly (ESOF)
    • Builds on over 40 years of BorgWarner transfer case supply for the OEM's passenger truck platform
    • High-performance solutions deliver quick response, improved torque performance

    AUBURN HILLS, Mich., Oct. 31, 2024 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is furthering its business with a major North American OEM by securing extensions on two transfer case contracts for upcoming vehicle launches with new platform requirements. BorgWarner will supply two types of transfer cases, including its active Electro-Mechanical On-Demand 2-Speed (EMOD) and a part-time Electric Shift-on-the-Fly 2-Speed (ESOF) transfer case. Two of the OEM's combustion and hybrid passenger truck platforms will be equipped with the EMOD and ESOF, while an additional passenger truck will receive the ESOF. Start of production for two of the platforms are slated for 2027, with the third expected to begin in 2028.   

    BorgWarner will supply two types of transfer cases to a major North American OEM, an active Electro-Mechanical On-Demand 2-Speed (EMOD) for two combustion and hybrid passenger truck platforms, and a part-time Electric Shift-on-the-Fly 2-Speed (ESOF) transfer case for an additional passenger truck platform.

    "We have supplied this OEM with transfer cases for its combustion and hybrid passenger truck platforms for over 40 years, and we are honored to have the opportunity to once again provide our transfer cases for several of their upcoming models," said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "These extensions solidify our team's reputation and the proven architecture, performance, reliability and quality of our transfer case products. We're very much looking forward to providing our valued customer with exceptional service for its vehicle platforms."

    The EMOD is a high-performance active transfer case that offers faster response, improved torque accuracy, and pre-emptive torque management that enhances the overall safety and stability of the vehicle. The heart of the EMOD is a motor driven clutch-apply system that allows for active modulation of torque distribution between the front and rear wheels based on a variety of continuously monitored vehicle parameters.  While used in several other of the OEM's platforms, this is the first time the EMOD transfer case has been adopted for this particular passenger truck platform.

    Specifically designed to handle the rugged requirements of a part-time four-wheel drive system in a heavy-duty truck, the ESOF transfer case offers a highly efficient two-wheel drive mode in conjunction with the ability to lock the vehicle into four-wheel drive while in motion. It performs these functions while delivering superior noise, vibration and harshness engineering and design to deliver superior performance. The quick and smooth-shifting ESOF technology has a proven track record, reaching its third vehicle evolution for the passenger truck platform.

    Both transfer cases are equipped with BorgWarner's HY-VO® driveline chain, which is optimized for high efficiency and improved durability. The EMOD is equipped with BorgWarner's premium friction products and the entire family of transfer cases will be manufactured at its Seneca, South Carolina production facility.

    About BorgWarner

    For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

    Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently-filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

    You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: evolving legal, regulatory, and tax regimes; the supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer ("OEM") customers and their suppliers, including us; commodities availability and pricing, and an inability to achieve expected levels of success in additional commercial negotiations with customers concerning recovery of these costs; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19 pandemic, including additional production disruptions; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by Russia's invasion of Ukraine; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis including our recent acquisitions of AKASOL AG, Santroll's light vehicle eMotor business, and Rhombus Energy Solutions, the anticipated acquisition of Hubei Surpass Sun Electric's charging business, and our 2020 acquisition of Delphi Technologies PLC; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; our dependence on automotive and truck production, both of which are highly cyclical and subject to disruptions; our reliance on major OEM customers; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment and potential for recessionary conditions in regional economies; the outcome of existing or any future legal proceedings, including litigation with respect to various claims; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; impacts from potential future acquisition or disposition transactions; and the other risks noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Form 10-K and/or Quarterly Report on Form 10-Q.

    We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

    BorgWarner Logo (PRNewsfoto/BorgWarner)

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-extends-transfer-case-business-with-north-american-oem-302292612.html

    SOURCE BorgWarner

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    Q&A

    New
    • What types of transfer cases is BorgWarner supplying to the OEM?

      BorgWarner will supply two types of transfer cases: the Electro-Mechanical On-Demand (EMOD) and Electric Shift-on-the-Fly (ESOF) transfer cases.

    • What are the key features of the EMOD and ESOF transfer cases?

      The EMOD transfer case is a high-performance solution that offers quicker response and improved torque management, while the ESOF is designed for heavy-duty trucks and allows for efficient two-wheel drive mode plus four-wheel drive functionality while in motion.

    • When is the production start date for the new transfer cases?

      Production for the two combustion and hybrid passenger truck platforms equipped with EMOD is expected to start in 2027, while the ESOF will be utilized in an additional passenger truck, slated to go into production in 2028.

    • How long has BorgWarner been supplying transfer cases to this major North American OEM?

      BorgWarner has been supplying transfer cases to this OEM for over 40 years, which underscores a long-standing partnership between them.

    • Is this the first time the EMOD transfer case will be used in a passenger truck platform for the OEM?

      The EMOD transfer case has been adopted for passenger trucks for the first time, as it was previously used in other platforms of the OEM.

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