BorgWarner Takes Over Haldex Traction Systems

The expansion of one of the biggest suppliers in the US, BorgWarner, will continue in 2011 at perhaps a faster pace than in the year before. One sign that expansion is the direction chosen by the company for the new year is the acquisition of the Haldex Traction Systems business.

Haldex's division, who has been supplying front-wheel drive based all-wheel drive systems for several major auto makers in the industry, was sold to BorgWarner for $205 million, less than the estimated sales of the company for 2011. The deal, announced since December last year, was finalized this week by the two companies.

"As demand for improved fuel economy continues to escalate, crossover vehicles are growing in popularity. OEMs are shifting away from traditional body-on-frame rear-wheel drive based all-wheel drive systems toward smaller, lighter front-wheel drive based all-wheel drive systems, which provide better fuel economy. Haldex Traction Systems is a true success story,” said Timothy Manganello, BorgWarner CEO.

"Adding their technical expertise and committed workforce to BorgWarner will help accelerate our global growth in drivetrain systems. The combination will offer customers a new and broader range of front-wheel drive based all-wheel drive systems as well as electric all-wheel drive and torque vectoring technologies."

The deal will open the doors for BorgWarner to expand its client and product portfolio, as well as the markets it is present on. Haldex Traction has contracts with Volkswagen, Audi, Skoda, Seat, Lamborghini, Bugatti, Volvo, Land Rover, Saab and GM, with the products being manufactured in Sweden, Mexico and Hungary.

"With a strong European base, the acquisition not only compliments our product and customer mix but also enhances our ability to bring these advanced technologies to our customers around the globe," added Manganello.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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