BorgWarner to spin off its fuel systems and aftermarket businesses
BorgWarner Inc. announced Tuesday morning that it plans to spin off its fuel systems and aftermarket segments into a new, publicly traded company. "The intended separation supports optimizing our combustion portfolio and advancing our electrification journey while NewCo would be able to pursue growth opportunities in alternative fuels, such as hydrogen, and in Aftermarket," Alexis Michas, the automotive-supply company's non-executive chairman, said in a release. "Ultimately, we expect the intended separation to maximize shareholder value by having two focused and strong companies, each pursuing their respective strategies." The company expects to complete the tax-free spinoff late in 2023. Shares of BorgWarner were up 2.6% in premarket trading Tuesday. They've lost 7% so far this year as the S&P 500 has fallen 12%.
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