BorgWarner Expands AWD Footprint in China with New SUV Transfer Case Deal
Event summary
- BorgWarner secures contract to supply torque-on-demand transfer case for new full-size SUV from Chinese OEM.
- Production set to begin Q4 2026, extending 20-year relationship with customer.
- Mlock TOD technology combines torque-on-demand and mechanical lock capabilities.
- Solution targets growing demand for versatile full-size SUVs in diverse driving conditions.
The big picture
This deal strengthens BorgWarner's position in China's growing full-size SUV segment, where demand for advanced all-wheel drive systems is increasing. The Mlock TOD technology addresses a key industry shift away from manual mode selection toward more automated torque distribution solutions. With production slated to begin in Q4 2026, this contract represents both an immediate revenue opportunity and a potential platform for further expansion in the Chinese automotive market.
What we're watching
- Market Expansion
- Whether BorgWarner can leverage this deal to secure additional AWD contracts in China's competitive SUV market.
- Technology Adoption
- The pace at which torque-on-demand systems replace traditional part-time 4WD in full-size SUVs.
- Supply Chain Risk
- How potential disruptions might impact BorgWarner's ability to meet production targets for this and future AWD programs.