SWOT Analysis of BorgWarner

BorgWarner is one of the most renowned automotive spare parts manufacturing company in USA. Power train products produced by the company are known all over the country. BorgWarner produces all type of components like automatic transmission components and manual transmission components, engine valve timing systems, turbochargers and also components of four wheel drive system. This huge company has more than 60 manufacturing plants that are present in 18 countries. All the automakers of USA acquire drive train from BorgWarner. All the products of BorgWarner are manufactured to enhance the efficiency of system and to save fuel with improved performance and emission. The two major groups of BorgWarner include BorgWarner Engine group and BorgWarner Drivetrain group.


• Strong Research and development is conducted by BorgWarner Engine group to enhance the performance and efficiency of components.

• BorgWarner offers cost effective components to all relative industry present in USA.

• Effective communication between different segments of company enhances the performance of company.

• Innovative improvements in products to enhance the performance regarding fuel consumption are one of main objective of company.

• Due to high quality products company enjoys business with its loyal customers throughout USA.

• BorgWarner also holds large share of market in automotive industry in US.

• The well trained management team and brand equity ensure the continuous growth of company.

• With its more than 60 manufacturing branches BorgWarner has long supply chain which also ensures competitive prices.

• The facilities of company spread across Europe, Asia, Canada and USA.

• The manufacturing segments of company are well equipped with latest technologies such as ignition interlock technology.


• Economic recession in USA affects the sales of company.

• Various external factors such as government policies, increasing taxes and other political scenarios prevailing in country effect the production of company.

• Competitors offering reduced rate of components and competition with local producers worldwide.

• Due to high fluctuation in exchange rate the prices of products does not remain consistent.


• Declining resources of fuel is one of major problem all over the world therefore; with more innovative products BorgWarner can hold major part of industry worldwide.

• Expanding the segments of company throughout the globe can gain more exposure and stability for company.

• Introducing company in recent markets like China and India can enhance the profits to higher level.

• Service segments should be expanded with manufacturing segments of company.

• Automotive components with alternative fuel resources should be introduced to market that can prove to be innovative product.


• BorgWarner has to deal with competition offered by local companies in other countries.

• The reducing cost of technology can also impact the production of company

• Reduced rates of products offered by the local companies initiate price war in every region.

• Other substitutes for automotive industry can offer challenges to the BorgWarner products.

• Low cost components from other markets of world like that of China can affect the sale and price of the products of BorgWarner company.


• BorgWarner. (2010). Official Website: http://www.borgwarner.com/en/default.aspx Retrieved: 26th Oct, 2012.

• BorgWarner, News & Media Center. (2010). Official Website: http://www.borgwarner.com/en/News/Pages/MediaCenter.aspx Retrieved: 26th Oct, 2012.

• TheAutoChannel.com. (1998). Borg-Warner Trophy Has Long, Colorful History of Excellence". Gordon Communications. Retrieved 29th Oct, 2012

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