Michigan-based auto supplier BorgWarner Inc. said Tuesday it will spin off its fuel systems and aftermarket businesses into a new publicly traded company.
The tax-free separation is expected to happen in late 2023 following regulatory approvals and final support from BorgWarner's board of directors. Shareholders would own stock in both companies. Spokeswoman Michelle Collins said in an email that information on where the new company will be located and its employment isn't yet available. The combined company has roughly 49,000 workers in 22 countries.
The split would allow BorgWarner to focus on growing its revenues from electric-vehicle propulsion, while the new company would continue to work in internal combustion engine systems as well as alternate fuels like hydrogen and after-sales products for commercial and retail customers, according to a news release.
