The CEO of automotive supplier BorgWarner told CNBC on Friday that the company hopes to spend nearly 50% of its revenues on electric vehicles within the next decade.
Currently, less than 3% of the Michigan-based company’s sales are in electric vehicles.
“Our assumption is that 30% of the vehicle will be battery-electric by 2030. It’s already a bit of an optimistic assumption. Our assumption is that we will achieve 45% of our sales,” said CEO Frederic Lissalde in an interview with Jim . Cramer on “Mad Money.”
BorgWarner’s commitment to growing its EV business is in line with the moves that have been made in the automotive industry. A line of starting electric cars have hit the public markets in recent months, and established titans such as General Motors and Ford have announced aggressive efforts to move away from internal combustion engines.
GM plans to offer exclusively electric vehicles by 2035, the company announced earlier this year, and become climate neutral by 2040. In February, crosstown’s rival Ford announced intentions to nearly double its investment in electric vehicles by 2025.
BorgWarner makes automatic transmissions and turbochargers, among other things. Both Ford and GM are customers, as are Volkswagen and Stellantis, who make Jeep and Dodge vehicles.
BorgWarner is investing heavily to grow its EV business and plans to spend about $ 8 billion on the effort between now and 2025, Lissalde told Cramer, “We are funding this hub ourselves.”
“This is going in the direction of electrification, we think at BorgWarner that is really profound. It’s going at different speeds and in a different region, but it’s profound. In both light and commercial vehicles,” he added.
Shares of BorgWarner were up 4.7% Friday to close at $ 45.74 each. The stock is up more than 18% so far and about 83% in the last 12 months.