According to media reports, BorgWarner has appointed a new Chief Operating Officer and plans to restructure its business units, both of which will take effect on July 1.
BorgWarner has promoted 57-year-old Joseph Fadool to Executive Vice President and Chief Operating Officer. The COO position was previously held by the current President and CEO, Frédéric Lissalde. Fadool began working at BorgWarner 10 years ago and was previously the Vice President and President and General Manager of the company's Emissions, Thermal, and Turbo Systems division.
Michelle Collins, BorgWarner's Global Director of Marketing and Public Relations, stated that appointing Fadool as COO is a "natural evolution of the company's leadership structure."
Lissalde stated, "Joseph Fadool is very familiar with the company's organizational structure and understands the development and commercialization of technology, making him the ideal candidate for the COO role."
Fadool will report directly to Lissalde. Collins mentioned that Joseph Fadool will be responsible for company operations while maintaining contact with the business unit presidents who report to him and will drive BorgWarner's "cost management and market expansion."
Information released by BorgWarner shows that the company's new business unit structure is related to Fadool's appointment as COO. BorgWarner will divide its business units into four segments:
Emissions, Thermal, and Turbo Systems, led by Volker Weng
Drivetrain and Morse Systems, led by Isabelle McKenzie
PowerDrive Systems, led by Stefan Demmerle
Battery and Charging Systems, led by Henk Vanthournout
Collins stated, "These changes will help improve services, but our way of collaborating with consumers and suppliers will not change."
Lissalde added, "In addition to enhancing BorgWarner's operational flexibility, we expect the new business structure to improve efficiency through cross-functional collaboration and additional cost controls. We believe this will help us seize many future growth opportunities."
Lissalde explained that this structural shift is intended to further align with the goals of the "Charging Forward" initiative announced in March 2021. This project aims to increase the annual revenue share of electrified products from 3% in 2021 to 45% by 2030. BorgWarner also plans to achieve carbon neutrality by 2035.
According to foreign media reports earlier this month, BorgWarner's first-quarter sales increased, "thanks to strong demand for its hybrid products in Europe and China."
Collins stated that BorgWarner has achieved significant accomplishments over the past three years, not only meeting its set targets for electrified product revenue but also successfully spinning off the Phinia business and achieving strategic expansion through acquisitions. "In the future, the company will continue to focus on business growth and profitability of electrified products and strive to enhance the company's core values."
