AUBURN HILLS, Mich. - BorgWarner (NYSE:BWA:NYSE), a global product leader in automotive technology, has announced securing a contract with a major Chinese automaker to supply an advanced dual inverter with a boost function for hybrid electric vehicles (HEVs). This technology will be featured in the automaker's plug-in hybrid (PHEV) and range-extended electric vehicle (REEV) passenger car platforms.
The dual inverter, part of BorgWarner's Viper platform, integrates two inverters and a high-power boost module into a single compact unit. This integration is designed to provide precise control of dual motors using a multi-core control chip, leading to increased power density and performance. The 400V dual inverter with boost function aligns with the hybrid architecture standards in the Chinese market and is expected to offer benefits such as lower costs and easier installation for automakers.
Dr. Stefan Demmerle, President and General Manager of BorgWarner PowerDrive Systems, emphasized the importance of supplying advanced technology to support the growing hybrid vehicle market in China. He stated that BorgWarner's engineering expertise, quality standards, and manufacturing processes position the company as a leader in the electrification shift.
The production of the dual inverter with boost will commence in September 2024 at BorgWarner's manufacturing facility in Suzhou, China. This move marks the first time BorgWarner will produce the 400V dual inverter with boost function for this particular Chinese OEM, expanding the company's product offerings within the partnership.
BorgWarner has a history spanning over 130 years, focusing on innovative mobility solutions. The company is currently playing a significant role in the global transition to eMobility, aiming to contribute to a cleaner and safer future.
The information in this article is based on a press release statement from BorgWarner.
InvestingPro Insights
As BorgWarner (BWA:NYSE) continues to innovate in the automotive technology space, securing new contracts for its advanced dual inverter technology, the company's financial health remains a key factor for investors. According to real-time data from InvestingPro, BorgWarner holds a market capitalization of $7.95 billion USD. The company's P/E ratio stands at an attractive 10.86, with an even more appealing adjusted P/E ratio for the last twelve months as of Q3 2023 at 6.47, indicating a potentially undervalued stock.
The company's revenue growth has been robust, with a 32.27% increase over the last twelve months as of Q3 2023. This growth narrative complements the recent announcement of BorgWarner's expansion in the Chinese market, as the company demonstrates its ability to increase sales while moving into the electrification era.
InvestingPro Tips highlight that BorgWarner has maintained dividend payments for 11 consecutive years, which could be reassuring for income-focused investors. Additionally, the company's liquid assets exceed short-term obligations, providing financial stability and the ability to weather economic fluctuations. Analysts have also revised their earnings upwards for the upcoming period, reflecting optimism surrounding BorgWarner's future performance.
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