* China to account for one-third of new sales from 2013-2015
* BorgWarner sees euro strengthening against U.S. dollar
By Deepa Seetharaman
DETROIT, Nov 6 BorgWarner Inc will
attract $2.3 billion in new business from 2013 to 2015 as
automakers around the world rely more heavily on turbochargers
and other fuel-saving technologies to meet stricter gas mileage
and emissions requirements.
About half those sales will come from Asia, which accounted
for 35 percent of BorgWarner's new business from 2010 to 2012,
the U.S. auto parts supplier said on Tuesday. China, the world's
largest auto market, will make up about one-third of new sales.
As BorgWarner ramps up in Asia, it will reduce its exposure
in Europe, which now makes up more than half its annual revenue.
Europe will be 30 percent of BorgWarner's new business over
this three-year period, down from 45 percent from 2010 to 2012.
Twenty percent of new business will be drawn from North America.
"Europe remains a leader in the adoption of new powertrain
technology, however the general economic slowdown in the region
has reset volume expectations in that market," Chief Executive
Officer Timothy Manganello said in a statement.
BorgWarner cut its annual profit and revenue outlook last
month due to Europe's downturn. Analysts expect the supplier to
generate just over $7 billion in revenue this year, according to
Thomson Reuters I/B/E/S.
The supplier said Tuesday it expects the U.S. dollar to euro
exchange rate will be $1.25 from 2013 to 2015, down from $1.35
over the last three years.
More stringent fuel economy and emissions standards are
spurring worldwide demand for BorgWarner's products, including
turbochargers and dual-clutch transmissions.
For example, U.S. government standards mandate that by 2025,
automakers must show corporate average fuel economy (CAFE) of
54.5 miles per gallon, or about 39 miles per gallon in real
world driving. Average fuel economy in 2011 models was 22.8 mpg.
Electric vehicles and plug-in hybrids will be important for
automakers to meet stricter targets, but the industry is also
relying heavily on technologies that help wring out more miles
per gallon in traditional internal combustion engines.
The U.S. Department of Energy estimated that turbochargers,
which are fans that generate extra power by forcing more
compressed air into an engine's cylinders, can improve fuel
efficiency by 7.5 percent.
BorgWarner has said its dual-clutch transmission can deliver
a 13 percent fuel efficiency improvement. The market for these
transmissions will more than double over the next five years to
9 million, BorgWarner said, adding that global turbocharger
sales will jump 50 percent by 2017 to 50 million units.