BorgWarner has announced its intention to execute a tax-free spin-off of its Fuel Systems and Aftermarket segments into a separate, publicly traded company, 'NewCo.'
Following the intended separation, BorgWarner would consist of the company’s current e-Propulsion & Drivetrain and Air Management segments.
The company expects NewCo to be a product leader in fuel systems and aftermarket distribution with balanced and synergistic exposure among Commercial Vehicle (CV), Light Vehicle (LV) and Aftermarket end markets and broad regional exposures.
Furthermore, NewCo is expected to benefit from its embedded relationships with global OEMs and focus on the global vehicle parc, which would be predominantly combustion-based through 2040. Additionally, NewCo would also plan to capitalise on the growth trends in Gasoline Direct Injection (GDI) and Hydrogen Injection Systems.
A press release from BorgWarner noted that the company expects that the intended separation would better allow it to focus resources on attractive organic and inorganic opportunities that position it to deliver and even exceed the goals underlying 'Charging Forward.'
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