USA – CV powertrain components giant, BorgWarner Inc of Auburn Hills, Michigan, USA, has announced that it expects to complete the spin-off of PHINIA, it’s Fuel Systems & Aftermarket business, into a new, publicly traded entity at the end of business on Monday the 3^rd of July 2023, as outlined by its filing with the Securities and Exchange Commission (SEC). PHINIA common stock is to begin trading on the New York Stock Exchange (PHIN) on Wednesday the 5^th of July 2023.

Plans to spin off the Fuel Systems and Aftermarket segments were first announced by Borgwarner in December 2022 as part of its “Charging Forward” strategy, a strategy to create two industry-leading companies, one, BorgWarner, to be a leader in electrification with a focused ICE business, and PHINIA , to be a product leader in fuel systems and aftermarket distribution with advanced technologies that optimize performance, increase efficiency and reduce emissions.

In its statement, BorgWarner said:

The intended separation is the next step in our ‘Charging Forward’ strategy. BorgWarner will be positioned as one of the market leaders in electric vehicle (EV) propulsion technology and will have the opportunity to capitalize on long-term, secular tailwinds in electrification, with an enhanced focus on the development and commercialization of EV technologies. BorgWarner will also retain a focused portfolio of conventional propulsion assets to support customers as they go through their own EV transitions, while driving operational and financial benefits for our EV business. With organic bookings and acquisitions to date, we believe we are on track to meet or exceed our goal of 25% of revenue from EV by 2025 as part of Charging Forward. The intended separation will also address our previously stated goal of completing dispositions by 2025 of internal combustion assets generating approximately USD3 billion to USD4 billion in annual revenue.