Markets

BorgWarner's Solenoid Technology to Power GM's GF6 Program - Analyst Blog

An image of some people shaking hands
Credit: Shutterstock photo

BorgWarner Inc. ( BWA ) announced that it will supply mini direct-acting variable force solenoid (VFS) for General Motors Co.' ( GM ) global front-wheel drive 6-speed automatic transmission program (GF6). This mini direct-acting VFS will be incorporated in the 2015 models of Chevrolet, Buick and GMC vehicles.

The improved efficiency and accuracy of BorgWarner's mini direct-acting VFS will increase fuel efficiency of the vehicles and enhance shift feel for drivers. The company announced that this application will be available in most of the major markets including the Americas, Europe, China and South Korea.

The mini direct-acting VFS is suitable for a variety of applications as it ensures lower leakage than variable bleed solenoids. It is nearly insensitive to variations in temperature and supply-side pressure, which enhances the shift quality. All this can be achieved with minimum modification of the existing transmission valve body. In addition, the changes will improve customer quality perception and satisfaction.

Recently, BorgWarner announced its plans to invest $9.4 million to expand the Dixon, IL, plant over the next three years. The company expects this expansion to support the optimal supply of environment-friendly technologies, including exhaust gas recirculation coolers, tubes and thermostats. These technologies lower emissions and improve fuel efficiency of passenger cars and on- and off-road commercial diesel vehicles.

BorgWarner is a leading manufacturer of powertrain products for major automakers. The company's products improve vehicle performance while meeting fuel-efficiency and emission standards. BorgWarner operates at 60 locations across 19 countries and sells its products worldwide, primarily to original equipment manufacturers of passenger cars, SUVs, trucks and commercial transportation products.

BorgWarner currently carries a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the same industry are STRATTEC Security Corporation ( STRT ) and Visteon Corporation ( VC ). Both the stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BORG WARNER INC (BWA): Free Stock Analysis Report

VISTEON CORP (VC): Free Stock Analysis Report

STRATTEC SEC CP (STRT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

STRT VC BWA

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More