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BWA's New Technology for Mercedes

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BorgWarner Inc. (BWA - Free Report) announced that its latest turbocharging technology will be deployed in the new generation medium-duty engines of Daimler AG’s (DDAIF - Free Report) Mercedes-Benz. This advanced technology will help the engine to maintain emissions standards together with improving performance and fuel efficiency.

The new OM 934 and OM 936 engines will be replacing the 900 series engines and will be used in a wide range of on-highway applications, including medium-duty trucks and urban buses. The engines will be equipped with BorgWarner’s latest B-series turbocharging technology for standard power outputs and regulated two-stage (R2S) turbocharger for higher outputs.

The company will also supply advanced fans and fan drives for this new engine series. Leveraging BorgWarner's technology, the Mercedes-Benz medium-duty engine provides powerful and economical solutions for various applications. This provides durability and reliability to the engine even in harsh commercial diesel powertrain environments.

According to the Euro VI emissions standards, the emission of nitrogen oxides from engines should reduce by 80%. The latest technologies of BorgWarner assist in maintaining the standards and ensure performance of the vehicle. They represent a state-of-art powertrain solutions to OEMs for on-and off-highway applications.

BorgWarner is a leading manufacturer of powertrain products for the world's major automakers. The company’s products are capable of improving vehicle performance and stability meeting fuel-efficiency and emission standards. The company’s largest customers include Ford Motor Co. (F - Free Report) and Toyota Motor Corp. (TM - Free Report) . It currently retains a Zacks Rank #3 (Hold).

BorgWarner posted a 2.5% decrease in profits to $1.16 per share (excluding non-recurring items) in the fourth quarter of 2012 from $1.19 in the same quarter of 2011. However, EPS in the quarter surpassed the Zacks Consensus Estimate by 4 cents.

Revenues dipped 3.1% to $1.72 billion, but were ahead of the Zacks Consensus Estimate of $1.69 billion. Global light vehicle production inched up 1%, while production in Europe, which comprises over half of the company’s sales, declined 11%.


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