Dive Brief:
- 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 the automotive supplier’s EVP and COO, will succeed Lissalde as president and CEO on the same date.
- Lissalde will serve in an advisory role until Aug. 30, 2025, to support the transition, the release said.
Dive Insight:
In July, BorgWarner reorganized its corporate structure to execute its “Charging Forward” strategy, which aims to accelerate the share of electrified vehicle part sales the company relies on, appointing Fadool to lead its operations in the process.
Fadool joined BorgWarner in 2010 and has 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 that Joe will step seamlessly into the CEO role and continue guiding 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 be leading BorgWarner through a challenging market environment as OEMs face softening demand.
While the July restructuring came with an annual cost savings of $100 million, the company recently reduced its full year mid-point net sales guidance by $150 million due to a lower market production outlook, according to its Q3 earnings report. Its net sales were down 5% year over year during the quarter ending Sept. 30.
However, BorgWarner secured six deals in Q3 that will contribute to its future long-term profitable growth, per the earnings report. 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-centric culture and strong operating model” position the company for success.
“As we look to capture growth opportunities ahead, we will stay focused on enhancing our strong product portfolio, efficiently managing our costs to stay competitive and supporting our dynamic teams around the globe to deliver value to our customers,” Fadool said.
