BorgWarner says Delphi purchase will help it move faster to electric cars
Delphi Automotive, the former parts division of General Motors, spun off its powertrain operations more than two years ago.
The remaining business was called Aptiv, with a mission to focus on self-driving and connected vehicle technology.
It was seen as a sign of things to come.
Now, a new chapter is being written for the powertrain piece, Delphi Technologies.
But its acquisition by Auburn Hills-based supplier BorgWarner — an all-stock deal valued at $3.3 billion and announced Tuesday — appears to be following the path envisioned in 2017 when Delphi Technologies was pitched as a company that could help automakers accelerate their shift to electrification.
The companies touted cost savings of $125 million by 2023, which could include salaries and administrative costs, but it’s too early to say how that will manifest. The deal is expected to close in the second half of the year.
The companies in a joint statement highlighted what Delphi would bring to BorgWarner, noting that the combined company would be positioned to take advantage of “future propulsion migration.”
“Delphi Technologies’ breadth of combustion propulsion products complements BorgWarner’s innovative portfolio of clean technologies,” according to the statement.
Internal combustion engines aren’t going away in the near future, and electrification today can mean technology that helps make those combustion engines more efficient.
But the future is expected to be electric. Getting there will mean lots of change ahead for the industry.
Pure electric vehicles remain a small but growing fraction of the light vehicle market, even as automakers announce ambitious plans to expand their electric options. Offerings like Ford’s Mustang Mach-E SUV, Fiat Chrysler Automobiles’ plans for 30 electrified nameplates in the next two years and General Motors’ $2.2 billion investment to turn Detroit-Hamtramck Assembly into an all-electric vehicle plant demonstrate that change is afoot.
Posted By: Detroit Free Press on January 29, 2020. For more information, please click here to read the source article.
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