BWA · CIK 0000908255
What BorgWarner Inc. told the SEC could break it.
BorgWarner's register reflects a globally distributed auto-parts supplier exposed at several points to the same trade and cost pressures. About 84% of its 2025 net sales were generated outside the U.S. — with China, Mexico, Germany, Poland, South Korea and Hungary each above 5% — and its customer base is concentrated in a few OEMs, chiefly Volkswagen (about 13%) and Ford (about 12%), together roughly a quarter of sales. Those cross-border flows run straight into 2025 U.S. tariffs on imports from the EU, Canada, Mexico and China, which it says have already raised the cost of raw materials and components it buys, while retaliatory tariffs lift the cost of products it sells; underneath, it is also exposed to swings in the price of non-ferrous metals and natural gas used in manufacturing.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- non-ferrous metals and natural gasmedium
BorgWarner is exposed to raw-material cost changes, mainly for various non-ferrous metals and natural gas consumed in manufacturing vehicle components, which it occasionally hedges with forwards and options.
“Commodity price risk is the possibility that the Company will incur economic losses due to adverse changes in the cost of raw materials used in the production of its products. Commodity forward and option contracts are occasionally executed to offset exposure to potential change in prices mainly for various non-ferrous metals and natural gas consumption used in the manufacturing of vehicle components.”
SEC filing →As of 2026
Customer concentration
- two OEM customers (Volkswagen 13%, Ford 12%) ~25% of salesmedium
BorgWarner's sales are concentrated in a few auto OEMs — Volkswagen (~13%) and Ford (~12%) together were roughly a quarter of FY2025 consolidated net sales.
“Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 13 %, 10 % and 11 % for the years ended December 31, 2025, 2024 and 2023. Consolidated net sales to Ford (including its subsidiaries) were approximately 12 %, 13 % and 14 % for the years ended December 31, 2025, 2024 and 2023, respectively.”
SEC filing →As of 2026
Geographic concentration
- 84% of sales outside the U.S. (Europe/Asia/Americas)medium
Approximately 84% of BorgWarner's FY2025 net sales were generated outside the U.S., with China, Mexico, Germany, Poland, South Korea and Hungary each exceeding 5%, exposing it to broad international trade, FX and political risk.
“During the year ended December 31, 2025, approximately 84 % of the Company's consolidated net sales were outside the U.S., attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and Hungary exceeded 5 % of consolidated net sales during the year ended December 31, 2025.”
SEC filing →As of 2026
Regulatory & policy
- U.S. 2025 import tariffs (EU/Canada/Mexico/China) and retaliationmedium
2025 U.S. tariffs on imports from the EU, Canada, Mexico and China have already increased BorgWarner's raw-material and component costs, and retaliatory tariffs (incl. from China) raise the cost of products it sells.
“In 2025, the U.S. announced significant tariffs on imports from a broad range of countries, including the European Union, Canada, Mexico and China. These tariffs have increased the cost of raw materials and components we purchase, and to the extent the tariffs announced to date or announced in the future become or remain effective and are maintained, these tariffs would likely further increase the cost of raw materials and components we purchase.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
Volkswagen AG
“Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 13 %, 10 % and 11 % for the years ended December 31, 2025, 2024 and 2023.”
Cited →“Consolidated net sales to Ford (including its subsidiaries) were approximately 12 %, 13 % and 14 % for the years ended December 31, 2025, 2024 and 2023, respectively.”
Cited →“The Company's worldwide net sales to the following customers (including their subsidiaries) were approximately as follows: Year Ended December 31, Customer 2023 2022 2021 Ford 14 % 15 % 13 % Volkswagen 11 % 9 % 9 % No other single customer accounted for more than 10% of the Company's consolidated net sales in any of the years presented.”
Cited →
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