The deal announced this week where BorgWarner is buying Delphi Technologies is an important marker in the rapid evolution of the automotive sector. The $3.3B agreement is a reflection of how the sector is morphing into a sophisticated integration of advanced mobility technologies. With acceleration in consumer market expectations and trends for increased government fuel efficiency standards (especially in Europe at present), the sector is moving quickly to expand the product offer for alternative propulsion systems. Most of the large automotive suppliers are well on their way in their evolution to become heavily technology-driven companies. Even with that, many are finding that meeting the challenges of tomorrow’s mobility/autotech sector challenging.
In terms of this announcement, for the combined company this will produce new synergies in the space of hybrid & electronic powertrain technology, where BorgWarner’s transmission, turbocharger, emissions systems and thermostat technology can be integrated with Delphi’s expertise & technology for electronic control modules & powertrain management systems. Both very large firms in their own right, BorgWarner is currently the 22nd largest automotive supplier and Delphi is the 62nd largest. Together, the new company will represent the 15th largest auto supplier in the world. GLDPartners Mobility Solutions foresees more consolidations and the emergence of a new form of strategic alliance with companies joining their combined technologies to meet an avalanche of new business.
About GLDPartners Mobility Solutions: GLDPartners is a recognized global authority around a range of supply chain, transportation & technology issues. GLDPartners Mobility Solutions specializes in testing and development facilities, infrastructure project development, mobility sector economic development strategies and regional mobility strategies. Please see the company’s website: GLDPartners Mobility Solutions