The CEO of auto supplier BorgWarner said on Friday that the company will have to nearly 50% of its revenues be tied with electric vehicles (EV) within the next decade. BorgWarner grows it’s EV business is in line with the moves made across the automotive industry because currently electric vehicle start-ups have hit the public markets. The company announced this year that the GM plans to exclusively offer EVs by 2035, and to become carbon neutral by 2040. In February 2021, crosstown rival Ford revealed intentions to almost double its investment in EVs through 2027.
BorgWarner Comapny makes automatic transmissions and turbochargers, among other products. Both Ford and GM are customers, and Volkswagen and Stellantis, which makes Jeep and Dodge vehicles.
BorgWarner is investing more in EV business and his plan to invest nearly $8 billion on it. Lissalde told Cramer: “We’re self-funding this pivot. “This moves towards the electrification we think at BorgWarner that is really profound,’’ he added.
Shares of BorgWarner rose 4.7% Friday to close at $45.75 a piece. The stock is up more than 18% year to date 2021 and roughly 83% in the past 12 months.