BorgWarner seeks access to global start-ups through investment in Autotech Ventures
April 4, 2017
BorgWarner, Auburn Hills, Michigan, USA, has announced a $10 million investment in Autotech Ventures, Palo Alto, California, USA, a venture capital fund that facilitates partnerships among financial investors, strategic corporate investors and start-ups focused on the future of transportation. Through this investment, BorgWarner hopes to pursue opportunities related to propulsion technologies and mobility areas outside of the company’s current product portfolio.
“While we remain focused on providing industry-leading propulsion technologies, we expect this partnership to provide global access to new technologies and services, inside and outside of our core product strengths,” stated Brady Ericson, BorgWarner’s Chief Strategy Officer. “As with all of our recent investments, this contributes to our larger strategy to maintain a product portfolio that supports a cleaner, more energy-efficient world.”
A key factor in the decision to invest in Autotech Ventures is the fund’s ability to help BorgWarner easily adapt to the changing demands of the industry, the company reports. While trends from electrification and autonomy continue to evolve, BorgWarner’s recent business moves have been focused on defining its position in the future automotive landscape.
“Over the last year and a half, we have taken great strides in the evolution of our company,” said James R Verrier, BorgWarner;s President and Chief Executive Officer. “In 2015, we acquired a leading electrical components maker in Remy, strengthening our position in electrified technologies. We earned a number of hybrid and electric customer contracts in 2016 and this continues in 2017, while commercialising new technologies, including our eBooster® electrically driven compressor and eGearDrive® transmission. All of these advancements are helping us develop the future of clean, efficient propulsion technologies.”
Through its investment in Autotech Ventures, BorgWarner reports that it has been able to review hundreds of global start-ups involved in the future of ground transportation. In addition to the companies BorgWarner expects to invest in with Autotech Ventures, the automotive product leader plans to independently invest, collaborate and support a handful of start-up businesses.
“Industry priorities continue to change,” added Ericson. “To be successful, we need to keep our fingers on the pulse of product trends and collaborate with innovative players across the world.”