AUBURN HILLS, Mich., Aug. 20, 2021 /PRNewswire/ -- BorgWarner President and CEO, Frédéric Lissalde, and other members of the BorgWarner leadership team attended the Grand Opening of AKASOL'S Gigafactory 1, Europe's largest factory for commercial-vehicle battery systems, located in Darmstadt, Germany. The grand opening, held on August 16th, was attended by Tarek Al-Wazir, Hessian Minister of Economics, Energy, Transport and Housing, numerous representatives from politics and business and Peter Altmaier, Federal Minister for Economic Affairs and Energy who shared a personal congratulatory video message.
In his speech, Lissalde commended AKASOL CEO Sven Schulz and his leadership team. "I want to congratulate all of the AKASOL employees for what you have accomplished so far. You can be very proud," said Lissalde.
The Gigafactory 1 campus boasts a two-level production, assembly and logistics hall with a test and validation center for the testing of cells, modules and systems. A 600 kWp solar plant feeds the production facility and offices as well as the German state of Hesse's largest charging-station park for electric vehicles, featuring more than 60 charging stations.
In February 2021, BorgWarner announced an agreement to acquire AKASOL AG, in support of the plans to expand its electrification portfolio. The tender offer process was completed on June 4, 2021. BorgWarner's current equity stake is ~93%, and the company plans to eventually achieve 100% ownership by mid-2022.
In March 2021, the company unveiled Project Charging Forward at their virtual Investor Relations Day. This initiative aims to accelerate BorgWarner's electrification strategy and grow its revenue from electric vehicles to ~45% of total revenue by 2030. This plan includes three key pillars:
- Profitably scaling electric light vehicles both organically and inorganically;
- Expanding into electric commercial vehicles organically and inorganically; and,
- Optimizing the Company's combustion portfolio.
AKASOL represents ~20% to 25% of the inorganic sales underlying Project Charging Forward, and is a key building block in the company's electric commercial vehicle pillar.
"AKASOL is at the forefront of battery-pack technology, and BorgWarner is amongst the world leaders in most of the products we produce," said Lissalde. "This is the case for electronics and battery thermal management. Together, we will realize product synergies that will create value for our customers and growth."
BorgWarner Inc. (NYSE: BWA) is a global product leader delivering innovative and sustainable mobility solutions for the vehicle market. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 96 locations in 23 countries, the company employs approximately 50,000 people worldwide. For more information, please visit borgwarner.com.
Forward-Looking Statements: This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2020 ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the difficulty in forecasting demand for electric vehicles and our EV revenue growth to 2030; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions; the ability to identify appropriate combustion portfolio businesses for disposition and consummate planned dispositions on acceptable terms; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly-changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19/coronavirus pandemic, including additional production disruptions; the failure to realize the expected benefits of the acquisition of Delphi Technologies PLC that the Company completed on October 1, 2020; the failure to realize the expected benefits of the acquisition of AKASOL AG that the Company completed on June 4, 2021 or a delay in the ability to realize those benefits; the failure to successfully execute on a timely basis our taking private strategy with respect to AKASOL; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to acquired businesses; our dependence on automotive and truck production, both of which are highly cyclical and subject to disruptions; our reliance on major OEM customers; commodities availability and pricing; supply disruptions impacting the Company or the Company's customers, such as the current shortage of semi-conductors that has impacted OEM customers and the Company; fluctuations in interest rates and foreign currency exchange rates; availability of credit; our dependence on key management; our dependence on information systems; the uncertainty of the global economic environment; the outcome of existing or any future legal proceedings, including litigation with respect to various claims; future changes in laws and regulations, including, by way of example, tariffs, in the countries in which we operate; impacts from any potential future acquisition or divestiture transactions; and the other risks, including, by way of example, pandemics and quarantines, noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.