BorgWarner is continuing to expand its product portfolio for battery electric and hybrid commercial vehicles by agreeing to form a joint venture with Shaanxi Fast Auto Drive Group, a China-based market-leading commercial vehicle (CV) parts supplier specializing in transmission and drivetrain systems.
“BThis joint venture aims to collaborate on a high-voltage inverter application. The focus is on enhancing efficiency for vehicles like heavy-duty trucks and off-road vehicles. Ultimately, this collaboration will bolster our business growth in the electrified commercial vehicle market, specifically in power electronics,” said Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems. “Our strong engineering footprint in China enables us to quickly accelerate product development to commercialize highly efficient inverter technology.”
“With solid technology, powerful R&D capabilities and integrated supply chain, BorgWarner is a well-known global product leader in inverters for new energy vehicles. FAST group is a China-based market-leading solution provider specializing in CV transmission and drivetrain systems. They also focus on high-end intelligent manufacturing equipment.,” said Xuyao Ma, Chairman of FAST Group. “With electrification, connectivity, autonomous driving, and shared mobility transforming the automotive industry in China, the penetration rate of CV in the new energy sector is growing rapidly. The joint venture will increase our customer value by providing state-of-the-art inverter products. It will also offer propulsion solutions in the commercial vehicle market.”
BorgWarner believes that combining its cutting-edge technology, customer intimacy, and deep electrification expertise will support accelerated growth. This growth is expected to occur in the commercial vehicle space. Moreover, Shaanxi Fast Auto Drive Group’s commercial vehicle expertise expected to contribute to this synergy through collaboration. Their customer relationships will also play a significant role in enhancing the collaborative efforts.
Subject to regulatory approval, we expect to establish the joint venture in the first quarter of 2024.
