BorgWarner Shares Rise on New eTurbo Contract with European Automator

Shares of BorgWarner Inc. (NYSE: BWA) gained in premarket trading on Wednesday after the company announced it secured a new contract for its eTurbo technology with a major European automaker. The deal covers an advanced hybrid passenger car, with production scheduled to begin in 2029.

Contract Details

The agreement expands BorgWarner's electrified boosting business with the unnamed European original equipment manufacturer (OEM). The contract is for a new generation of the company's eTurbo, which features remote power electronics to allow for greater flexibility in vehicle and engine compartment integration.

BorgWarner stated that this new program builds upon its eTurbo platform that is already in series production. The company noted it remains the only supplier currently offering a 400-volt eTurbo in series production.

Technology and Market Implications

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The eTurbo is an electrically assisted turbocharger that integrates a high-speed electric motor directly onto the turbo shaft. According to BorgWarner, this design eliminates turbo lag, enables faster engine response, and allows for the recuperation of exhaust energy, which is converted into electrical power and fed back into the vehicle's high-voltage system.

The system is designed to deliver 20 kW of continuous electrical power and up to 30 kW peak. BorgWarner highlights that the technology helps automakers meet increasingly stringent emissions regulations, including Euro 7 and China National 6b, by reducing the need for fuel enrichment at high loads and lowering exhaust backpressure.

Market Reaction

Following the announcement, shares of the Auburn Hills, Michigan-based company rose 2.3% in Wednesday's premarket session. The new contract underscores continued demand for advanced hybrid technologies as automakers navigate the transition to electrification while working to optimize the performance and efficiency of internal combustion engines.