DETROIT — BorgWarner Inc. on Tuesday said it targets boosting its share of revenue from electric vehicles to about 45 percent by 2030 from less than 3 percent now.
The Auburn Hills, Mich., company said its plan comprises three approaches — profitably scaling electric light vehicles, expanding into electric commercial vehicles and optimizing its combustion-engine portfolio through the planned disposal of businesses with between $3 billion and $4 billion in aggregate revenue.
It sees revenue from EVs growing to about $10 billion in 2030 from about $350 million this year. BorgWarner sees overall revenue growing from an estimated $15 billion this year to about $18 billion in 2025 and more than $22 billion in 2030.
“We’ve presented an acceleration towards electrification,” BorgWarner CEO Frederic Lissalde said in an interview. “The market is pulling in such a way that a lot of our backlog is on battery-electric vehicles. We feel it’s the right time for us to make that aggressive move.”
CFO Kevin Nowlan said in the light vehicle market this year about 5% of global industry production will be EVs, but that is expected to hit 15% in five years and 30% in 2030.
BorgWarner, which ranked No. 25 on Automotive News’ list of the top 75 suppliers worldwide in 2019 with $10.2 billion in sales to automakers, closed its acquisition of Delphi Technologies last year. The deal is expected to help better position the two companies for the shift toward electrification.
Ahead of an investor day event, BorgWarner said it expects to generate about $4.5 billion in free cash flow between this year and 2025. The company said it aims to achieve carbon neutrality by 2035.