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AUBURN HILLS, Mich. - BorgWarner Inc. (BWA), a $7.6 billion automotive technology leader with annual revenues exceeding $14 billion, has secured a new contract to supply its electric cross differential (eXD) technology to a leading Chinese automaker for use in electric vehicles, the automotive supplier announced Thursday. According to InvestingPro data, the company maintains a strong financial health rating and operates with moderate debt levels.
The technology dynamically controls power distribution between wheels to improve handling and traction capabilities across various driving conditions. The system adjusts slip control based on real-time driving conditions and vehicle status, enhancing stability during high-speed driving, rapid acceleration, and sharp turns. This technological advancement comes as BorgWarner continues to demonstrate strong market performance, with InvestingPro analysis showing the stock trading near its 52-week high of $37.29.
"BorgWarner’s eXD technology improves handling and vehicle stability in various driving conditions," said Isabelle McKenzie, Vice President of BorgWarner and President and General Manager of Drivetrain and Morse Systems.
The eXD system responds to different road conditions by transferring more power to outer wheels for enhanced cornering on dry roads with high friction, while limiting power to slipping wheels on slippery surfaces like ice or snow.
The company noted that while the technology has previously been used in combustion engine vehicles, this new contract represents an expansion of its application to electric vehicles in the Chinese market.
BorgWarner did not disclose the financial terms of the agreement or the specific Chinese automaker involved in the contract.
The announcement comes as automotive suppliers increasingly adapt traditional powertrain technologies for electric vehicle applications to meet growing performance and safety demands in the rapidly evolving EV market. With a current ratio of 1.97 indicating strong liquidity and analysts predicting continued profitability, BorgWarner appears well-positioned for future growth. For deeper insights into BorgWarner’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
The information is based on a press release statement from BorgWarner.
In other recent news, BorgWarner reported better-than-expected second-quarter results, driven by robust growth in electric vehicle components. This performance comes amid challenging market conditions, highlighting the company’s resilience and adaptability. BorgWarner also announced it has secured contracts to supply high-voltage coolant heater technology for plug-in hybrid electric vehicles with two major global automakers, with production anticipated to start in 2028. Additionally, the company has won a contract to provide wastegate turbocharger technology for a hybrid sports car platform from a major global automaker. The production for this technology is slated to begin in the third quarter of 2028. These developments underscore BorgWarner’s expanding footprint in the hybrid and electric vehicle markets. Furthermore, analysts have noted BorgWarner’s strong position in the industry, with firms like BorgWarner raising their 2025 outlook. These recent developments indicate BorgWarner’s strategic focus on advancing its electric and hybrid vehicle technologies.
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