BorgWarner Inc.
Company History
BorgWarner History: Founding, Growth & Key Milestones
Founded 1928 in Auburn Hills, Michigan
When was BorgWarner founded?
BorgWarner was founded in 1928 in Auburn Hills, Michigan by Charles S. Davis and George W. Borg, making it 98 years old.
- Founded
- 1928
- Founding place
- Auburn Hills, Michigan
- Founders
- Charles S. Davis and George W. Borg
- Headquarters today
- Auburn Hills, Michigan
- Milestones documented
- 15 (1928–2026)
- Current CEO
- Joseph F. Fadool
- Acquisitions
- 9
| Year | Event |
|---|---|
| 1928 | Four parts makers merge to form Borg-Warner |
| 1934 | Overdrive transmission sold to Chrysler |
| 1936 | Borg-Warner Trophy introduced |
| 1950 | Ford-O-Matic automatic transmission |
| 1987 | Leveraged buyout and break-up |
| 1993 | Borg-Warner Automotive becomes independent |
| 1998 | Entry into turbochargers |
| 2005 | Headquarters moves to metro Detroit; BERU stake |
| 2015 | Remy International acquisition |
| 2020 | Delphi Technologies acquisition completed |
| 2021 | Charging Forward strategy and AKASOL |
| 2023 | PHINIA spin-off |
| 2024 | $646 million of impairments |
| 2025 | New CEO, charging exit and record awards |
| 2026 | Entry into data center power |
- Where was BorgWarner founded?
- BorgWarner was founded in Auburn Hills, Michigan in 1928.
- Who founded BorgWarner?
- BorgWarner was founded by Charles S. Davis and George W. Borg.
- When did BorgWarner start?
- BorgWarner was founded in 1928.
- How old is BorgWarner?
- BorgWarner is 98 years old as of 2026.
Founding Story
In 1928 four Midwestern parts makers, Borg & Beck (clutches), Warner Gear (transmissions and differentials), Marvel-Schebler Carburetor and Mechanics Universal Joint, combined as Borg-Warner Corporation in Chicago. The logic was defensive: automakers could start making their own parts or switch suppliers at any time, and a bigger company could bargain better. George W. Borg became president and Charles S. Davis, who had built Warner Gear's standard-transmission business, became chairman; in March 1929 they swapped roles, and Davis ran the company until 1950. Davis let each division keep its own product development and sales, a loose federation that quickly added Morse Chain and others. Warner Gear developed the overdrive that Chrysler bought in 1934, and after World War II Borg-Warner built automatic transmissions for Ford.
Founders
Charles S. Davis
Davis helped negotiate the 1928 merger of Borg & Beck, Warner Gear, Marvel-Schebler Carburetor and Mechanics Universal Joint into Borg-Warner Corporation and became its first chairman. In March 1929 he switched roles with George W. Borg and served as president until 1950. He ran Borg-Warner as a holding company that gave its divisions wide autonomy, added Morse Chain, Long Manufacturing and other parts makers in 1929, bought Detroit Gear and Machine for factory space (which brought the Norge refrigerator line with it), and in 1935 started the program that produced Borg-Warner's postwar automatic transmissions. He died in 1954. (Exact birth year remains publicly undisclosed).
George W. Borg
Borg was named the first president of Borg-Warner Corporation when the 1928 merger closed, then swapped roles with Charles S. Davis in March 1929 to pursue other interests, leaving Davis to run the company day to day. The Borg name stayed in the corporate title, alongside Warner Gear's, through the 1993 spin-off of Borg-Warner Automotive and the later adoption of the BorgWarner name. (Exact birth year remains publicly undisclosed).
Key Milestones
Four parts makers merge to form Borg-Warner
Borg & Beck, Warner Gear, Marvel-Schebler Carburetor and Mechanics Universal Joint agreed to merge in May 1928, creating Borg-Warner Corporation with headquarters on South Michigan Avenue in Chicago. Morse Chain, Long Manufacturing and others joined in 1929.
Source: encyclopedia.comOverdrive transmission sold to Chrysler
Warner Gear engineers developed Borg-Warner's first overdrive, sold to Chrysler in 1934. A year later the company started the automatic-transmission program that paid off after World War II.
Source: encyclopedia.comBorg-Warner Trophy introduced
Borg-Warner commissioned a sterling silver trophy for the Indianapolis 500. It has been presented to the race winner ever since and remains the company's best-known public symbol.
Source: en.wikipedia.orgFord-O-Matic automatic transmission
After a 1948 contract to build half of Ford's automatic transmissions, Borg-Warner developed the three-speed Ford-O-Matic and its first lock-up torque converter. The Ford-O-Matic contract ended in 1958.
Source: en.wikipedia.orgLeveraged buyout and break-up
A hostile approach from GAF Corporation ended with a $4.2 billion leveraged buyout led by Merrill Lynch Capital Partners. The debt forced the sale of most non-automotive businesses, including chemicals to General Electric for $2.3 billion in 1988. Today's BorgWarner Inc. was incorporated in Delaware in 1987.
Source: encyclopedia.comBorg-Warner Automotive becomes independent
Borg-Warner Automotive was spun off from Borg-Warner Security Corporation and became a separate public company focused on powertrain components.
Source: en.wikipedia.orgEntry into turbochargers
BorgWarner bought German turbocharger maker Kühnle, Kopp & Kausch, then added Kuhlman Corporation's Schwitzer diesel turbo business in 1999. Turbos became the core of today's largest segment.
Source: en.wikipedia.orgHeadquarters moves to metro Detroit; BERU stake
BorgWarner moved its world headquarters from Chicago to the Detroit area and took a majority stake in BERU AG, a German supplier of diesel cold-start and ignition technology.
Source: en.wikipedia.orgRemy International acquisition
BorgWarner bought Remy International, a maker of electric motors, starters and alternators, for $29.50 per share in cash, giving it the rotating-electrics base for later e-motor products.
Source: en.wikipedia.orgDelphi Technologies acquisition completed
BorgWarner completed its all-stock purchase of Delphi Technologies on October 2, 2020, after renegotiating the exchange ratio to 0.4307 BorgWarner shares per Delphi share. The deal added power electronics, software and fuel-system businesses.
Source: borgwarner.comCharging Forward strategy and AKASOL
BorgWarner set a goal of raising electric-vehicle revenue from under 3% of sales to about 45% by 2030 and agreed to buy German battery-system maker AKASOL for EUR 120 per share.
Source: prnewswire.comPHINIA spin-off
On July 3, 2023 BorgWarner completed the tax-free spin-off of its Fuel Systems and Aftermarket segments as PHINIA Inc., a separate NYSE-listed company.
Source: borgwarner.com$646 million of impairments
BorgWarner recorded $646 million of impairment charges, including $577 million of goodwill at PowerDrive Systems and Battery & Charging Systems. Net earnings attributable to the company fell to $338 million.
Source: sec.govNew CEO, charging exit and record awards
Joseph F. Fadool became CEO on February 6, 2025, and the company decided that month to exit EV charging. Net sales reached $14.316 billion, free cash flow rose about 66% to $1.208 billion, and about $630 million was returned to shareholders.
Source: prnewswire.comEntry into data center power
On February 11, 2026 BorgWarner signed a master supply agreement with TurboCell, a subsidiary of Endeavour, for a modular turbine generator system for AI data centers and microgrids, with production expected in early 2027.
Source: borgwarner.comMajor Acquisitions
Eldor Corporation Electric Hybrid Systems business
2023BorgWarner bought the electric hybrid systems segment of Italy's Eldor for about EUR 75 million (about $82 million) at closing plus a possible earnout, adding power-electronics products for hybrid and electric vehicles.
Rhombus Energy Solutions
2022BorgWarner bought San Diego-based Rhombus, a maker of DC fast chargers and charging software for fleets, paying about $130 million at closing with up to $55 million more in contingent payments.
Santroll Automotive Components (light vehicle eMotor business)
2022BorgWarner bought the carved-out light vehicle e-motor business of China's Santroll for up to $195 million (RMB 1.4 billion) (~$153 million (RMB 1.1 billion) at closing plus an earnout of up to $41.7 million (RMB 0.3 billion)), completing the deal on April 1, 2022.
AKASOL AG
2021BorgWarner offered EUR 120 per share for German battery-system maker AKASOL, a deal reported at about $880 million for all shares. In June 2021 it paid about $732 million (EUR 648 million) to acquire 89.08% through the tender offer.
Delphi Technologies
2020Announced in January 2020 as an all-stock deal valued at about $3.3 billion, the acquisition added power electronics, software and calibration capabilities plus fuel-injection and aftermarket businesses.
Rinehart Motion Systems and AM Racing
2019Two small purchases that added high-performance inverter and electric-motor engineering for electric propulsion.
Sevcon
2017BorgWarner bought Sevcon, a maker of motor controllers and power electronics for electric vehicles, for about $200 million.
Remy International
2015BorgWarner paid $29.50 per share in cash, about $950 million of equity value, for Remy, a maker of electric motors, starters and alternators.
Kühnle, Kopp & Kausch (KKK)
1998BorgWarner entered turbochargers by buying German turbocharger maker KKK, renamed 3K-Warner Turbosystems, and added Kuhlman Corporation's Schwitzer diesel turbo unit in 1999.
Keep researching BorgWarner
BorgWarner Company History FAQ
When was BorgWarner founded?
Borg-Warner Corporation was formed in Chicago in 1928 by merging Borg & Beck, Warner Gear, Marvel-Schebler Carburetor and Mechanics Universal Joint. Its Morse chain business, added in 1929, dates to 1880, which is why the company describes itself as more than 130 years old.
What did BorgWarner build for Ford in 1950?
After a 1948 contract to supply half of Ford's automatic transmissions, Borg-Warner developed the three-speed Ford-O-Matic, introduced in 1950 along with its first lock-up torque converter. The Ford-O-Matic contract ended in 1958.
Why did Borg-Warner go private in 1987?
A hostile takeover attempt by GAF Corporation ended with a $4.2 billion leveraged buyout led by Merrill Lynch Capital Partners. To pay down the debt, Borg-Warner sold most non-automotive businesses, including its chemicals unit to General Electric for $2.3 billion in 1988.
When did BorgWarner start making turbochargers?
BorgWarner entered turbochargers in 1998 by buying German maker Kühnle, Kopp & Kausch, then added the Schwitzer diesel turbo business through the 1999 Kuhlman acquisition. Turbos are now the core of its largest segment.
What is the Borg-Warner Trophy?
The Borg-Warner Trophy is the sterling silver trophy presented to the winner of the Indianapolis 500, sponsored by the company since 1936. BorgWarner EFR turbochargers have also been fitted to every IndyCar Series car since 2012.
When did BorgWarner move to Michigan?
BorgWarner moved its world headquarters from Chicago to the Detroit area in 2005. It is now based in a leased facility in Auburn Hills, Michigan.
What happened at BorgWarner in 2023?
On July 3, 2023 BorgWarner spun off its Fuel Systems and Aftermarket segments as PHINIA Inc. In the same year its eProduct revenue reached about $2.0 billion.
What is BorgWarner's newest business?
In February 2026 BorgWarner signed its first agreement to supply turbine generators for AI data centers and microgrids, with production planned for early 2027.
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