The Tier 1 automotive supplier has separated the division into one publicly traded company.
BorgWarner Inc., a Tier 1 automotive supplier in Aubern Hills, Mich, is spinning off its BorgWarner Fuel Systems and Aftermarket division into a separate publicly traded company named Phinia Inc.
After completion of the move in late 2023, Brady Ericson will serve as president and chief executive officer and Chris Gropp will be executive vice-president and chief financial officer.
Ericson has been vice-president of BorgWarner and president and general manager of BorgWarner Fuel Systems and Aftermarket since March 2022, while Gropp has been vice-president of finance for Fuel Systems and Aftermarket since October 2020.
“Brady and Chris are well-rounded and respected leaders at BorgWarner and in the industry. They each possess a breadth of knowledge and experience that will be required to guide PHINIA as an independent company and pursue its continued success,” said Frédéric B. Lissalde, President and Chief Executive Officer, BorgWarner.
Lissalde says Phinia is expected to be a product leader in fuel systems, starters, alternators and aftermarket distribution with “balanced and synergistic exposure” in the commercial vehicle, light vehicle, and the aftermarket segments.
The move is likely linked to BorgWarner’s transition to electrification technology and eMobility markets. In March 2021, the auto parts supplier announced strategic plans to boost its electrification business, aiming to increase the company’s electric vehicle revenue from less than three percent of total revenues in 2021 to 45 percent in 2030.
The three-part strategy focuses on scaling its electric light vehicles segment, expanding into electric commercial vehicles and spinning-off or selling the company’s combustion engine products portfolio, which was worth between $3 billion and $4 billion in aggregate revenue by 2021.
BorgWarner reported 2022 revenues of $15.8 billion and is forecasting 2023 revenues of about $17 billion with an expected $1.5 billion to $1.8 billion coming from its electric vehicles divisions.
