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The world of automotive suppliers has gotten a bit smaller as Auburn Hills, MI-based BorgWarner has acquired Haldex. BorgWarner says its acquisition cost $205 million, and that the paperwork should be signed, sealed and delivered in the first quarter of 2011.

You may recall the name Haldex as a supplier of all-wheel drive systems for several automakers including Volvo and Ford. The move gives mega-supplier BorgWarner a big-time chip in the AWD market, further broadening the supplier's technology base. BW also gains a larger foot-hold in the European market, where AWD has been widely accepted for decades. Hit the jump for the proud papa's official release.

[Source: BorgWarner]
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BorgWarner Acquires Haldex Traction Systems

AUBURN HILLS, Mich., Dec. 17, 2010

AUBURN HILLS, Mich., Dec. 17, 2010 /PRNewswire-FirstCall/ -- BorgWarner announced today that it has signed an agreement to acquire the Traction Systems division of Haldex Group, a leading provider of innovative products for the global vehicle industry headquartered in Stockholm, Sweden.

"This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions," said Timothy M. Manganello, Chairman and CEO, BorgWarner. "With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will compliment our current portfolio as well as our customer and geographic mix."

The move is expected to accelerate BorgWarner's growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles. The acquisition will add industry leading FWD/AWD technologies, with a strong European customer base, to BorgWarner's existing portfolio of front and rear-wheel drive based products. This enables BorgWarner to provide global customers a broader range of all-wheel drive solutions to meet their vehicle needs.

The purchase price is approximately $205 million (1.425 billion SEK) and represents less than one times estimated 2011 sales. The deal is expected to close in the first quarter of 2011 subject to standard regulatory approvals.

Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 60 locations in 18 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, Deere & Company, PSA, and MAN. The Internet address for BorgWarner is: http://www.borgwarner.com.

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    • 1 Second Ago
      • 4 Years Ago
      Where AWD has been accepted for decades?

      The uptake in AWD is higher in the US and always has been.

      Europe is not more "accepting" of AWD than the US.

      Where does this stuff come from?

      The reason the uptake of AWD is higher in the reason isn't any reason that reflects well on the US, it's simply that AWD reduces fuel economy and gas is cheaper in the US so we both don't mind as much and also tend to have larger engines which need more grip to get the power down.
        • 4 Years Ago
        I'd like to see their references too.
      • 4 Years Ago
      Why can't any successful companies remain swedish? I'm sure we'll be left with R&D and manufactoring for a few years until they close shop and move the factory to some eastern european country, and development is centralized to wherever BW's HQ is at.

      well well, atleast we can rejoice that Volvo is still swedish..no wait :/
        • 4 Years Ago
        The Swedish-owned Volvo, Scania, and Saab still make everything from trucks to buses to airplanes, which are much bigger in comparison to their car business.
        • 4 Years Ago
        Saab is still Swedish. Well Muller may not be Swedish but .. does that make Saab Dutch? There is always Ikea!
      • 4 Years Ago
      Who makes the AWD for Subaru?
        • 4 Years Ago
        Fuji Heavy Industries.
        • 4 Years Ago
        Pretty sure Subie makes their own stuff. I am sure some components might get sourced, but I am pretty sure the design is all their's, if not all the manufacturing.
      • 4 Years Ago
      This may be good news for VW; more DSG/AWD implementation on a wider range of cars. 4Motion for All!
      • 4 Years Ago
      205 million isn't that large of a purchase...
        • 4 Years Ago
        why is that?

        youtube was bought for much much more and it was only a bit of software, not even created by them, because the flash thingy was created by some dutch guy and a few computers

        yet ...

        atleast this is a company with real physical products.
      • 4 Years Ago
      While not a huge fan of Haldex AWD, I am a huge fan of BW turbochargers. AWD has came a long way, and my next car might just be AWD if I can fight off the urge for a Mazdaspeed3. That, or get a Mazdaspeed6 and have both.
      • 4 Years Ago
      Looks like they only acquired Haldex Traction Systems. Haldex as a company is much bigger than that, being a Tier-1 for a whole bunch of other automotive components.
        • 4 Years Ago
        Yes it doesn't even require reading past the first sentence of the press release. And bloggers continue to wonder why they don't get respect as journalists.

        What's curious is that even the press release doesn't clarify that BW already makes AWD systems, such as the one in the Cadillac CTS4.
        • 4 Years Ago
        Good catch. I immediately thought something was fishy in that the purchase price was "only" 204 million. I figured a successful supplier such as Haldex would be worth a lot more then that.
      • 4 Years Ago
      We are the Borg. Assimilating...
      • 4 Years Ago
      For those that don't know BorgWarner also supplies to Honda
        • 4 Years Ago
        For what components?

        Defintely isn't the AWD/4WD systems as SH-AWD, VTM-4, and RT-4WD are all in house Honda designed systems.
      • 4 Years Ago
      BG makes some top class kit and so does Haldex. They probably looked at what it would cost to develop a world class AWD system and realized they might be able to by into an undervalued company.
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