AUBURN
HILLS, Mich., Feb. 14,
2023 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA)
today announced Brady Ericson will
serve as President and Chief Executive Officer, and Chris Gropp will serve as Executive Vice
President and Chief Financial Officer of the separate, publicly
traded company that will result from completion of the previously
announced proposed spin-off of BorgWarner's Fuel Systems and
Aftermarket segments. BorgWarner also announced today that
the intended company name is "PHINIA Inc." ("PHINIA").
"Brady and Chris are well-rounded and respected leaders at
BorgWarner and in the industry. They each possess a breadth of
knowledge and experience that will be required to guide PHINIA as
an independent company and pursue its continued success," said
Frédéric B. Lissalde, President and Chief Executive Officer,
BorgWarner. "Today's announcement is also an exciting next step
that personifies and gives an identity to what we had referred to
as 'NewCo', now PHINIA."
Ericson began his career at BorgWarner in 2000 and has served as
Vice President of BorgWarner and President and General Manager of
BorgWarner Fuel Systems and Aftermarket since March 2022. He has been an officer of BorgWarner
since 2011 while serving as President and General Manager of three
different business units and as BorgWarner's Chief Strategy
Officer. Prior to this, he served in roles of increasing
responsibility in operations, manufacturing strategy, engineering,
and sales. He has served in overseas assignments in four different
countries in Europe and
Asia. Earlier in his career,
Ericson held various sales and engineering positions with Honeywell
(formerly AlliedSignal), Remy International, and Ford Motor
Company. Ericson holds a Bachelor of Science in Mechanical
Engineering from Kettering University
and a Master of Business Administration from Duke University.
"I am honored and humbled to be selected to launch and lead
PHINIA. We will draw upon BorgWarner's rich 130-year history –
maintaining the strong culture of product leadership, integrity and
operational excellence," says Ericson. "There is a tremendous
opportunity and a bright future ahead for our talented employees,
with exciting things on the horizon."
Gropp began her career at BorgWarner in 2001, serving most
recently as Vice President of Finance for Fuel Systems and
Aftermarket since October 2020. Over
her 22 years at BorgWarner, Gropp has held positions of increasing
responsibility in several BorgWarner businesses domestically and
internationally, from Plant Controller and Commercial Controller to
Finance Director and Vice President of Finance for three of
BorgWarner's businesses. Prior to joining BorgWarner, Gropp was an
auditor for KPMG and Director, Finance/Controller for Pressac Inc.
Gropp earned a Bachelor of Science degree in Accounting from the
University of Alabama. She is a
certified public accountant licensed in Alabama and a member of the American Institute
of Certified Public Accountants as well as the Alabama Society of
Certified Public Accountants.
"We've delivered significant operational and segment margin
improvement over the last couple of years in Fuel Systems and
Aftermarket," says Gropp. "I'm excited for the opportunity to lead
PHINIA, as part of Brady's leadership team, and seek to continue
the positive momentum and financial discipline, with the objective
of setting us up for success as an independent entity."
PHINIA is expected to be a product leader in fuel systems,
starters, alternators and aftermarket distribution with balanced
and synergistic exposure among Commercial Vehicle, Light
Vehicle, and Aftermarket end markets, and to have broad
regional and customer exposures.
The proposed spin-off is expected to be completed in late 2023,
subject to satisfaction of customary conditions.
About BorgWarner
For more than 130 years, BorgWarner
has been a transformative global product leader bringing successful
mobility innovation to market. Today, we're accelerating the
world's transition to eMobility — to help build a cleaner,
healthier, safer future for all.
Forward-Looking Statements: This press release contains
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current outlook, expectations, estimates and projections. Words
such as "anticipates," "believes," "continues," "could,"
"designed," "effect," "estimates," "evaluates," "expects,"
"forecasts," "goal," "guidance," "initiative," "intends," "may,"
"outlook," "plans," "potential," "predicts," "project," "pursue,"
"seek," "should," "target," "when," "will," "would," and variations
of such words and similar expressions are intended to identify such
forward-looking statements. Further, all statements, other than
statements of historical fact contained or incorporated by
reference in this press release that we expect or anticipate will
or may occur in the future regarding our financial position,
business strategy and measures to implement that strategy,
including changes to operations, competitive strengths, goals,
expansion and growth of our business and operations, plans,
references to future success and other such matters, are
forward-looking statements. Accounting estimates, such as those
described under the heading "Critical Accounting Policies and
Estimates" in Item 7 of our most recently-filed Annual Report on
Form 10-K ("Form 10-K"), are inherently forward-looking. All
forward-looking statements are based on assumptions and analyses
made by us in light of our experience and our perception of
historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
under the circumstances. Forward-looking statements are not
guarantees of performance, and the Company's actual results may
differ materially from those expressed, projected or implied in or
by the forward looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Forward-looking statements are subject to risks and uncertainties,
many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from
those expressed, projected or implied in or by the forward-looking
statements. These risks and uncertainties, among others, include:
our ability to effect the transaction described above and to meet
the conditions related thereto; the ability of the separated
companies to each succeed as a standalone publicly traded company;
the potential that uncertainty during the pendency of the
transaction could affect the Company's financial performance; the
possibility that the transaction will not be completed within the
anticipated time period, or at all; the possibility that the
transaction will not achieve its intended benefits; the possibility
of disruption, including changes to borgwarner.com existing
business relationships, disputes, litigation, or unanticipated
costs in connection with the transaction; the uncertainty regarding
the expected financial performance of the Company or PHINIA
following completion of the transaction; potential negative effects
of the announcement or pendency of the transaction on the market
price of the Company's securities and/or on the financial
performance of the Company; the impacts of any information and
consultation processes with works councils and other employee
representatives in connection with the transaction; evolving legal,
regulatory, and tax regimes; the supply disruptions impacting us or
our customers, such as the current shortage of semiconductor chips
that has impacted original equipment manufacturer ("OEM") customers
and their suppliers, including us; commodities availability and
pricing, and an inability to achieve expected levels of success in
additional commercial negotiations with customers concerning
recovery of these costs; competitive challenges from existing and
new competitors including OEM customers; the challenges associated
with rapidly changing technologies, particularly as relates to
electric vehicles, and our ability to innovate in response;
uncertainties regarding the extent and duration of impacts of
matters associated with the COVID-19 pandemic, including additional
production disruptions; the difficulty in forecasting demand for
electric vehicles and our electric vehicles revenue growth;
potential disruptions in the global economy caused by Russia's invasion of Ukraine; the ability to identify targets and
consummate acquisitions on acceptable terms; failure to realize the
expected benefits of acquisitions on a timely basis including our
recent acquisitions of AKASOL AG, Santroll's light vehicle eMotor
business, and Rhombus Energy Solutions, the anticipated acquisition
of Hubei Surpass Sun Electric's charging business, and our 2020
acquisition of Delphi Technologies PLC; the failure to promptly and
effectively integrate acquired businesses; the potential for
unknown or inestimable liabilities relating to the acquired
businesses; our dependence on automotive and truck production, both
of which are highly cyclical and subject to disruptions; our
reliance on major OEM customers; fluctuations in interest rates and
foreign currency exchange rates; our dependence on information
systems; the uncertainty of the global economic environment and
potential for recessionary conditions in regional economies; the
outcome of existing or any future legal proceedings, including
litigation with respect to various claims; future changes in laws
and regulations, including, by way of example, taxes and tariffs,
in the countries in which we operate; impacts from potential future
acquisition or disposition transactions; and the other risks noted
in reports that we file with the Securities and Exchange
Commission, including Item 1A, "Risk Factors" in our most
recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. We
do not undertake any obligation to update or announce publicly any
updates to or revisions to any of the forward-looking statements in
this press release to reflect any change in our expectations or any
change in events, conditions, circumstances, or assumptions
underlying the statements.
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