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BorgWarner (BWA) & Shaanxi to Form JV to Expand e-CV Portfolio
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BorgWarner (BWA - Free Report) agreed to form a JV with Shaanxi Fast Auto Drive Group, a specialized production enterprise and exportation base in China, to expand its product portfolio for battery electric and hybrid CVs.
FAST group specializes in CV transmission, drivetrain systems and high-end intelligent manufacturing equipment.
Per Stefan Demmerle, president and general manager of BorgWarner PowerDrive Systems, the JV will work on a high-voltage inverter application for high-efficiency vehicles to support BWA’s business growth for power electronics in the electrified commercial vehicle market. The company’s robust engineering footprint in China enables it to expedite product development to commercialize highly efficient inverter technology.
BorgWarner expects to establish the JV in the first quarter of 2024.
The company’s electric vehicle-focused mergers and acquisitions are boosting its prospects. The acquisition of AKASOL, completed in February 2022, expanded its CV electrification capabilities and positioned it to capitalize on the fast-growing battery systems market.
The buyout of Santroll's light vehicle eMotor business, which closed in March 2022, bolstered BWA's scale in eMotor product leadership. The acquisition of Drivetek AG in December 2022, strengthened BorgWarner’s specialty power electronics capabilities. The buyout of Eldor Corporation’s Electric Hybrid System business will further enhance its electric product portfolio.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimates for 2024 have improved by 4 cents in the past seven days.
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BorgWarner (BWA) & Shaanxi to Form JV to Expand e-CV Portfolio
BorgWarner (BWA - Free Report) agreed to form a JV with Shaanxi Fast Auto Drive Group, a specialized production enterprise and exportation base in China, to expand its product portfolio for battery electric and hybrid CVs.
FAST group specializes in CV transmission, drivetrain systems and high-end intelligent manufacturing equipment.
Per Stefan Demmerle, president and general manager of BorgWarner PowerDrive Systems, the JV will work on a high-voltage inverter application for high-efficiency vehicles to support BWA’s business growth for power electronics in the electrified commercial vehicle market. The company’s robust engineering footprint in China enables it to expedite product development to commercialize highly efficient inverter technology.
BorgWarner expects to establish the JV in the first quarter of 2024.
The company’s electric vehicle-focused mergers and acquisitions are boosting its prospects. The acquisition of AKASOL, completed in February 2022, expanded its CV electrification capabilities and positioned it to capitalize on the fast-growing battery systems market.
The buyout of Santroll's light vehicle eMotor business, which closed in March 2022, bolstered BWA's scale in eMotor product leadership. The acquisition of Drivetek AG in December 2022, strengthened BorgWarner’s specialty power electronics capabilities. The buyout of Eldor Corporation’s Electric Hybrid System business will further enhance its electric product portfolio.
Zacks Rank & Key Picks
BWA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Toyota Motor Corporation (TM - Free Report) and NIO Inc. (NIO - Free Report) . While VLVLY and TM each sport a Zacks Rank #1 (Strong Buy) at present, NIO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimates for 2024 have improved by 4 cents in the past seven days.