BorgWarner Inc. announced Brady Ericson will serve as President and Chief Executive Officer(CEO), and Chris Gropp will serve as Executive Vice President and Chief Financial Officer(CFO) of the separate, publicly traded company that will result from completion of the previously announced proposed spin-off of BorgWarner’s Fuel Systems and Aftermarket segments. BorgWarner also announced today that the intended company name is “PHINIA Inc.” (“PHINIA”).
“Brady and Chris are well-rounded and respected leaders at BorgWarner and in the industry. They each possess a breadth of knowledge and experience that will be required to guide PHINIA as an independent company and pursue its continued success,” said Frédéric B. Lissalde, President and Chief Executive Officer, BorgWarner. “This is also an exciting next step that personifies and gives an identity to what we had referred to as ‘NewCo’, now PHINIA.”
“I am honored and humbled to be selected to launch and lead PHINIA. We will draw upon BorgWarner’s rich 130-year history – maintaining the strong culture of product leadership, integrity and operational excellence,” says Ericson. “There is a tremendous opportunity and a bright future ahead for our talented employees, with exciting things on the horizon.”
“We’ve delivered significant operational and segment margin improvement over the last couple of years in Fuel Systems and Aftermarket,” says Gropp. “I’m excited for the opportunity to lead PHINIA, as part of Brady’s leadership team, and seek to continue the positive momentum and financial discipline, with the objective of setting us up for success as an independent entity.”
PHINIA is expected to be a product leader in fuel systems, starters, alternators and aftermarket distribution with balanced and synergistic exposure among Commercial Vehicle, Light Vehicle, and Aftermarket end markets, and to have broad regional and customer exposures.
The proposed spin-off is expected to be completed in late 2023, subject to satisfaction of customary conditions.