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U.S.
demand for hybrid and electric cars could take a hit if
President Donald Trump decides to roll back tough fuel
efficiency standards set by former President Barack Obama late
last year.
Borg Warner CEO James Verrier told Reuters any decline in U.S.
demand would be more than offset by the growing market in China
and Europe, where they continue to toughen emissions standards.
"Our belief is that there will continue to be a strong increase
in fuel economy emissions standards," Verrier told Reuters in an
interview during a visit to Japan to meet with clients including
Toyota Motor Corp.
"What this means for us is that in our business nothing has
really changed, it's business as usual, and that's what we see
with the automakers."
Borg Warner, which counts Volkswagen AG <VOWG_p.DE>, Ford Motor
Co and most major global automakers as clients, expects to boost
revenues from hybrids and electric vehicle parts to around 16
percent of total revenues in 2023, from around 1 percent
currently.
"As our customers look at what the fuel regulations may be in
China versus the United States versus Europe, we can help them
figure out the best mix of propulsion technology they can have
to satisfy each region," Verrier said.
The company has been expanding into hybrid and electric car
parts, including transmissions and drive modules for electric
cars and turbochargers and clutches for hybrids.
Most of the demand for its electric vehicle parts came from
Chinese automakers, including Geely Automobile Holdings and
Great Wall Motor Co, he said.
While progress towards greener cars may stall in the United
States, Beijing has proposed requiring 8 percent of automakers'
sales to be battery electric or plug-in hybrid vehicles by 2018.
The target then rises to 10 percent in 2019 and 12 percent in
2020.
(Reporting by Naomi Tajitsu; Editing by Randy Fabi)
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