BorgWarner has agreed to pay $205 million in cash for the Traction Systems division of Haldex Group, a Swedish automotive systems manufacturer. For BorgWarner — the world’s largest producer of automatic-transmission parts, the acquisition will establish a base for supplying all-wheel drive (AWD) systems and components in Europe.
The Haldex division is an important supplier to Volvo AB, Tata Motors (Land Rover) and General Motors (Opel), and its 2011 revenues may exceed the purchase price, BorgWarner said in a statement.
Michigan-based BorgWarner Inc. manufactures automotive and commercial vehicle powertrain components and systems worldwide. Its customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, Deere & Company, PSA, and MAN.
It indicates that the additional line of business will accelerate its shift toward supplying components for the global all AWD market as it continues to shift toward front-wheel drive (FWD) based vehicles. Traction Systems will bring FWD/AWD technologies and a European customer base to BorgWarner's existing front- and rear-wheel drive based products, it said. And, it will aid its effort to provide a broader range of “all-wheel drive solutions” worldwide.
"This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions," stated BorgWarner chairman and CEO Timothy M. Manganello. "With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will compliment our current portfolio as well as our customer and geographic mix."