Shanghai (ZXZC)- BorgWarner recently inked an agreement with Shaanxi Fast Auto Drive Group ("FAST Group"), a leading Chinese supplier of commercial vehicle components specializing in transmissions and drivetrain systems, to build a joint venture, aiming to further expand its product portfolio for battery electric and hybrid commercial vehicles, according to a press release from BorgWarner.

BorgWarner noted that the joint venture is expected to be established in the first quarter of 2024 upon some regulatory approvals.

Photo credit: BorgWarner

"By jointly working on a high-voltage inverter application for high efficiency vehicles such as heavy-duty trucks and off-road vehicles, this joint venture will support our business growth for power electronics in the electrified commercial vehicle market," said Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems. "Our strong engineering footprint in China enables us to quickly accelerate product development to commercialize highly efficient inverter technology.”

"With solid technology, powerful R&D capabilities and integrated supply chain, BorgWarner is a well-known global product leader in inverters for new energy vehicles. FAST Group is a China-based market-leading solution provider specializing in CV transmission and drivetrain systems as well as high-end intelligent manufacturing equipment," said Xuyao Ma, Chairman of FAST Group. "With electrification, connectivity, autonomous driving, and shared mobility transforming the automotive industry in China, the penetration rate of CV in the new energy sector is growing rapidly. The joint venture will increase our customer value by providing state-of-the-art inverter product and propulsion solutions in the commercial vehicle market."

BorgWarner said believes that the combination of its technological advancement, close customer relationships, and expertise in the electrification domain, coupled with Shaanxi Fast Auto Drive Group's proficiency in commercial vehicles and established customer relations, will accelerate the development of their joint venture in the field of commercial vehicle electrification.