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BorgWarner acquires Haldex Traction Systems

ABR Staff Writer Published 02 February 2011

BorgWarner, a provider of engineered components and systems for vehicle powertrain applications worldwide, has expanded its product portfolio with new technologies to accelerate global growth in all-wheel drive markets with the acquisition of Traction Systems division of Haldex Group for $205m.

Haldex Traction Systems supplies its front-wheel drive based all-wheel drive systems for passenger car and crossover vehicles from its production facilities in Sweden, Mexico and Hungary.

The company said that its customers include Volkswagen, Audi, Skoda, Seat, Lamborghini, Bugatti, Volvo, Land Rover, Saab and GM.

BorgWarner chairman and CEO Timothy Manganello said as demand for improved fuel economy continues to escalate, crossover vehicles are growing in popularity.

"OEMs are shifting away from traditional body-on-frame rear-wheel drive based all-wheel drive systems toward smaller, lighter front-wheel drive based all-wheel drive systems, which provide better fuel economy," Manganello said.

"Adding their technical expertise and committed workforce to BorgWarner will help accelerate our global growth in drivetrain systems.

"The combination will offer customers a new and broader range of front-wheel drive based all-wheel drive systems as well as electric all-wheel drive and torque vectoring technologies.

"With a strong European base, the acquisition not only compliments our product and customer mix but also enhances our ability to bring these advanced technologies to our customers around the globe."