On December 11, 2010, BorgWarner announced that it had signed an agreement to acquire the Traction Systems division of Haldex Group, a leading provider of innovative products for the global vehicle industry headquartered in Stockholm, Sweden.
“This acquisition supports our continuing strategy to be a global technology leader in providing powertrain solutions,” said Timothy M. Manganello, Chairman and CEO, BorgWarner at the time of the acquisition. “With the acquisition of Haldex Traction Systems, BorgWarner has added a strong and well-respected brand of all-wheel drive products that will complement our current portfolio as well as our customer and geographic mix.”
The move is expected to accelerate BorgWarner’s growth in the global all-wheel drive (AWD) market as it continues to shift toward front-wheel drive (FWD) based vehicles. The acquisition will add industry leading FWD/AWD technologies, with a strong European customer base, to BorgWarner’s existing portfolio of front- and rear-wheel drive based products. This enables BorgWarner to provide global customers with a broader range of all-wheel drive solutions to meet their vehicle needs.
Traction Systems produces electronically controlled four-wheel or all-wheel drive systems for cars. The fact that these systems are controllable means that they can better interact with other subsystems in the car. The system software can be customized to meet each carmaker’s particular wishes in terms of driving characteristics and traction.