Automotive supplier BorgWarner expects a “relatively modest” impact from the United Auto Workers strikes — for now.
The company noted in a securities filing that the striking workers of major automobile brands Ford, Stellantis and General Motors are “focused on select final assembly plants.”
However, BorgWarner added, “to the extent the strikes continue for several weeks or expand to impact other customer plants, including those customers’ engine and transmission plants, the impact on BorgWarner’s sales will be larger.”
The company projects sales to Ford, Stellantis, and General Motors in North America of just under $250 million per month on average for 2023. It said it does not plan to provide additional updates on effects of the strike until its next earnings call, on Nov. 2.
In the first half of this year, BorgWarner’s sales rose by more than $1 billion, or 14%, YoY to $4.5 billion while operating profits rose by nearly 16%.
The company’s largest revenue generator is air management components for automobiles, followed by drivetrain and battery systems. BorgWarner also has a burgeoning electric vehicle parts business and is targeting over $10 billion in eProduct sales by 2027.
The UAW strike began on in mid-September at three plants owned by the Big Three auto manufacturers, causing the facilities to go idle.
The supply chains of Ford, Stellantis and General Motors are being closely watched, as cancelled or delayed sales could hurt downstream suppliers and create disruptions in the manufacturing ecosystem.
