Short dive:
- BorgWarner President and CEO Frédéric Lissalde will retire after 25 years at the company on Feb. 6, 2025, according to a Nov. 7 press release.
- Joseph Fadool, who currently serves as EVP and COO of the automotive supplier, will succeed Lissalde as president and CEO on the same date.
- Lissalde will serve in an advisory role until August 30, 2025, to support the transition, the release said.
Diving information:
In July, BorgWarner reorganized its corporate structure to implement its “Charging Forward” strategy, which aims to accelerate the share of electrified vehicle component sales the company relies on, appointing Fadool to lead its operations in the process.
Fadool joined BorgWarner in 2010 and served as president of four of the company’s business units, including general manager of emissions, thermal and turbo systems, Morse systems and TorqTransfer systems, the precursor to PowerDrive systems. Previously, he worked at Continental Automotive Systems and Ford Motor Co., according to the release.
“I know Joe will seamlessly assume the role of CEO and continue to lead BorgWarner to even greater heights,” Lissalde said in the release. “His track record of operational excellence and dynamic thinking make him the right person for the role and I am excited to follow the company’s continued success with him at the helm.”
Fadool will lead BorgWarner through a challenging market environment where OEMs face declining demand.
While the July restructuring came with annual cost savings of $100 million, the company recently cut its mid-year net sales forecast by $150 million due to lower market production outlook, according to its third quarter earnings report. Its net sales fell 5% year-over-year during the quarter ended Sept. 30.
However, according to the earnings report, BorgWarner secured six deals in the third quarter that will contribute to its future long-term profitable growth. The deals include two transfer case awards with a “major North American OEM,” three high-voltage coolant heater awards with Asia-based OEMs, and a General Motors turbocharger award for the automaker’s Corvette ZR1 platform.
In the Nov. 7 release, Fadool said he believes BorgWarner’s “product portfolio, innovative and customer-focused culture, and strong operating model” position the company for success.
“As we look to capture future growth opportunities, we will remain focused on enhancing our strong product portfolio, efficiently managing our costs to remain competitive, and supporting our dynamic teams around the world to deliver value to our customers,” Fadool said.