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Few vehicle component manufacturers can say they serve all the important auto makers in the world. But BorgWarner can.

 

And the US firm believes this is one of the main reasons it can survive the industry's fierce competition.

 

The firm's "very diverse customers base" means "it is easier for us to reduce costs and avoid risks," said Tim Manganello, BorgWarner's chairman and chief executive officer.

 

The same policy is applied to BorgWarner's China operation.

 

"Local clients are as important as our multinational clients, because someday they will grow into global giants," Manganello said.

 

The president told China Daily that the company has seen many examples of this in its history.

 

"We were suppliers to Toyota in 1950s and 1960s when it was only a Japanese company, and now it has grown into one of the world's largest auto makers. Similar cases can be seen in Hyundai and Kia, which are now important players in the industry."

 

He predicts that the same thing will happen in China.

 

"One thing is always the same: The clients want the leading technology and good quality, and to solve certain problems. BorgWarner can help them, and improve their competitiveness."

 

Manganello said that the company has been serving a number of Chinese vehicle manufacturers. It provides four-wheel drive for Great Wall, and a transmission component for Geely Group and China National Heavy Duty Truck.

 

The company aims to increase its China sales by more than five times over the next five years.

 

Manganello is confident with the target.

 

"Our products will capture the hearts and minds of Chinese consumers - products aimed at improving fuel economy, air quality and vehicle stability."

 

He said the company recently launched a wholly owned factory in Ningbo, a city of East China's Zhejiang Province, for the assembly of turbochargers and transmission solenoids.

 

The manufacturing facility, with an initial investment of US$30 million, is the first of several operations planned for a campus that comprises BorgWarner Automotive Components (Ningbo) Co Ltd. An office building there has also opened to house employees of BorgWarner Turbo & Emissions, BorgWarner Morse TEC and BorgWarner Transmission Systems.

 

"That new facility marks another milestone in the advancement of our growth strategy for China," Manganello pointed out.

 

"More automakers are adopting European emissions standards for fuel economy and air quality, and they need advanced power train technologies in order to meet them," he said.

 

"We expect that growth opportunities in China, Asia and elsewhere will continue to develop. We are taking steps to ensure that we are well-positioned to take full advantage of this growth."

 

In addition to this enterprise, BorgWarner operates three joint ventures in China. The first was formed in 1993 to supply transmission products to Beijing Jeep. That business was restructured in 2000 to focus on four-wheel drive and all-wheel drive products.

 

The second joint venture, also in Ningbo, was formed in 1998 for the production of thermal products. The company owns a 50-per-cent stake in transmission products-maker NSK Warner, which also opened a new plant in Shanghai last month.

 

"The facility in Shanghai illustrates that we are highly committed to helping China produce fuel efficient, superior quality and high technology vehicles," the president said.

 

BorgWarner opened a corporate office in Shanghai in November 2004.

 

Customers who will be served by the new Ningbo operation include China National Heavy Duty Truck, Volkswagen/Audi, First Automobile Works and Yulin Diesel.

 

Eventually, most of China's original equipment manufacturing makers and engine makers will be supplied from this plant with turbochargers, emissions systems, timing chain systems and transmission controls.

 

In late 2005, BorgWarner forecast new business between 2006 to 2008 would hit US$1.6 billion, 15 per cent of which is expected to come from Asia.

 

About 18 percent of BorgWarner's global sales were in Asia last year, driven by customer needs in fuel efficiency, emissions reduction, vehicle stability and demand for advanced technology.

 

"The Asian market is very strong among our global business. India, South Korea, Japan and most importantly China are our focus," Manganello said.

 

Michigan-based BorgWarner Inc is a product leader in highly engineered components and systems for vehicle power train applications worldwide.

 

The company operates manufacturing and technical facilities in 62 locations in 17 countries. Customers include Ford, VW/Audi, DaimlerChrysler, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, BMW, Caterpillar, Navistar International and Peugeot.

 

(China Daily April 7, 2006)