BorgWarner to Supply Transfer Cases to SAIC Maxus for Export Vehicles

BorgWarner announced it will provide transfer cases to SAIC Maxus for its export vehicles, with production scheduled to begin in Q3 2026 in China. The deal comes at a time when Chinese automakers are aggressively expanding their global footprint, particularly in emerging markets.

SAIC Maxus, a subsidiary of China's largest automaker SAIC Motor, has been growing its presence in international markets with its range of commercial vehicles and SUVs. The company has established operations in over 100 countries and regions, with strong presence in Southeast Asia, Middle East, and Latin America.

The company will manufacture two types of transfer cases - an on-demand version with mechanical locking and a high-torque part-time variant. Both products will feature BorgWarner's HY-VO driveline chain technology to improve efficiency at high speeds. The transfer cases are crucial components in four-wheel drive systems, allowing vehicles to switch between two-wheel and four-wheel drive modes.

The transfer cases support 2 Wheel Drive High Range and AUTO modes, which help improve fuel efficiency on paved roads compared to standard 4-wheel drive systems. For vehicles with on-demand 4-wheel drive, the cases enhance safety and handling while providing better off-road capability through the mechanical locking mode.

"Our decade-long relationship with SAIC Maxus continues to grow. This technology will support their expansion in both Chinese and overseas markets," said Isabelle McKenzie, Vice President of BorgWarner and President of Drivetrain and Morse Systems.

The agreement strengthens BorgWarner's position in China's automotive market, particularly for vehicles meant for export. The Michigan-based company has been operating in China for several decades and has established multiple manufacturing facilities and R&D centers in the country. BorgWarner, with over 130 years of history in automotive technology, has been increasingly focusing on innovations that support vehicle electrification and sustainability in the automotive sector.

This collaboration comes as global automotive suppliers are deepening their engagement with Chinese automakers, who are rapidly advancing in technology and expanding their global market presence. The Chinese auto industry has seen significant growth in exports, with SAIC being one of the leading exporters of vehicles from China.