BorgWarner forms JV with Chinese firm for power electronics in electric CV applications
US-based BorgWarner has announced 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. The company is targeting high-voltage inverters solution for electric CVs in the Chinese market.
"By jointly working on a high-voltage inverter application for high efficiency vehicles such as heavy-duty trucks and off-road vehicles, this joint venture will support our business growth for power electronics in the electrified commercial vehicle market," 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", he added. Subject to regulatory approval, the company expects to establish the joint venture in the first quarter of 2024.
Xuyao Ma, Chairman of FAST Group, commented on the JV, "With solid technology, powerful R&D capabilities and an 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 as well as high-end intelligent manufacturing equipment".
He noted that with electrification, connectivity, autonomous driving, and shared mobility transforming the Chinese market, 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 product and propulsion solutions in the commercial vehicle market", he added.
BorgWarner banks on its cutting-edge technology, customer intimacy, and deep electrification expertise, together with Shaanxi Fast Auto Drive Group's commercial vehicle expertise and customer relationships, to support an accelerated growth of electrification in the commercial vehicle space in China.