Core Viewpoint - BorgWarner has obtained a patent for a "Waste Heat Recovery System and its Turbine Expander," indicating a focus on innovative technologies in energy efficiency [1] Group 1 - The patent was granted under announcement number CN116641760B [1] - The application date for the patent was February 2019 [1]

Core Insights - BorgWarner Inc. is recognized as one of the best auto stocks to buy currently [1] - Morgan Stanley has adjusted its rating on BorgWarner from Overweight to Equal Weight, raising the price target from $42 to $49, reflecting a cautious outlook for the electric vehicle market until 2026 [2] - BorgWarner has revised its financial performance estimates for 2025, projecting net sales between $14.1 billion and $14.3 billion, slightly below the consensus forecast of $14.31 billion [3] Financial Performance - The company anticipates net sales for 2025 to be between $14.1 billion and $14.3 billion, compared to a previous estimate of $14.0 billion which has been revised to $14.4 billion [3] - The adjustments in sales projections are attributed to higher industrial production forecasts and favorable foreign exchange movements, although these may be offset by production delays in North America and Europe [3] Business Overview - BorgWarner primarily supplies drivetrain systems, powerdrive systems, battery and charging systems, and turbo and thermal management technology to automobile original equipment manufacturers [4]

Group 1 - The State Intellectual Property Office of China has granted a patent to BorgWarner for a technology titled "Auxiliary Cooling Electronic Component with Extrusion Cooling Chamber" [1] - The patent authorization announcement number is CN113382595B, and the application date was February 2021 [1]

Group 1 - The core point of the article is that BorgWarner has obtained a patent for a method of generating duty cycles in linear modulation range for an extended pulse width modulation voltage source inverter [1] Group 2 - The patent is titled "Method for Generating Duty Cycle in Linear Modulation Range of Extended Pulse Width Modulation Voltage Source Inverter" [1] - The patent was granted with the announcement number CN114097171B and the application date was September 2020 [1]

Core Viewpoint - REE Automotive Ltd. has announced a strategic non-binding Memorandum of Understanding (MOU) with Cascadia Motion to collaborate on the development and commercialization of a next-generation electric drive unit (EDU) that integrates REEcorner technology, aimed at supporting global OEM electrification programs [1][4][6] Group 1: Collaboration Details - The MOU outlines cooperation in manufacturing, commercialization, and sales of the new EDU product, which will be jointly developed by REE and Cascadia Motion [1][2] - REE will grant Cascadia Motion an exclusive, time-limited option to distribute a uniquely packaged EDU that combines Cascadia Motion's iM-125 drive unit with REEcorner technology [2][6] - The collaboration aims to provide a compact, cross-platform EDU designed to accelerate electric vehicle (EV) development for OEMs [2][4] Group 2: Market Insights - The global EDU market is projected to grow at a compound annual growth rate (CAGR) of approximately 9% from 2025 to 2035, with expectations that the market size will double by 2035 due to increased demand for electric vehicles [4][6] - This collaboration positions both companies to offer OEMs a scalable, advanced EDU solution with near-term availability, aligning with the industry's shift towards software-defined vehicle architectures [4][5] Group 3: Technical Specifications - The new EDU will feature a permanent magnet motor with a peak power of 100 kW, peak torque of 3000 Nm, and a maximum continuous power of 57 kW [8] - The EDU will operate at a voltage of 400 V and has a maximum speed of 835 rpm, designed to enhance efficiency and functional safety [8] Group 4: Strategic Vision - The collaboration is seen as a natural progression of a three-year partnership, reinforcing the mission to accelerate the transition to software-defined, by-wire mobility [5] - REE's advanced zonal SDV architecture aims to simplify vehicle design and enhance safety, performance, and reliability, making it adaptable to future market changes [10]

Industry Overview - Global electric vehicle (EV) sales reached approximately 2 million units in November 2025, totaling around 18.5 million vehicles year-to-date, representing a 21% increase compared to the same period in 2024 [1][10] - EVs accounted for over one-quarter of all new cars sold worldwide in 2025 [1][10] - Europe experienced a significant growth in EV sales, with November sales up 36% year-over-year, driven by new incentives and a broader range of available models [2][10] Market Dynamics - China and Europe are expected to remain leaders in EV adoption, with emerging regions like the Middle East and Africa anticipated to see faster growth in 2026 due to improved financing and more affordable models [4] - The global EV penetration is projected to reach 26.7% in 2026 [4] - The expansion of charging infrastructure is critical for EV adoption, with ongoing investments from public and private sectors enhancing the viability of long-distance travel for EV users [5] Company Insights General Motors (GM) - GM is the top-selling automaker in the U.S., holding a 17% market share in Q3 2025, up 50 basis points year-over-year, and retained its 2 spot in the U.S. EV market with 67,000 deliveries and a 16.5% share [7][9] - The company benefits from the federal government's Auto Tariff Offset Process, enhancing its cost competitiveness and supporting U.S.-based manufacturing [8] - GM has a Zacks Rank 1, with a consensus estimate for fiscal 2026 EPS implying year-over-year growth of 12.9% [9] BorgWarner (BWA) - BorgWarner is a leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, securing several new programs in Q3 2025 [11] - The company booked 17 awards over the past six months, broadening its customer base and increasing hybrid and EV exposure [12] - BWA carries a Zacks Rank 2, with a consensus estimate for fiscal 2026 sales and EPS implying year-over-year growth of 2.1% and 6.8%, respectively [13] Blue Bird Corporation (BLBD) - Blue Bird is a leading player in low- and zero-emission school buses, well-positioned to benefit from long-term trends such as a growing school-age population and ongoing federal funding for clean transportation [14] - The company expects fiscal 2026 revenues of $1.5 billion and adjusted EBITDA of $220 million, anticipating continued profitable growth [15] - BLBD carries a Zacks Rank 2, with a consensus estimate for fiscal 2026 sales implying year-over-year growth of 5.7% [16]

Core Viewpoint - The comparison between BorgWarner (BWA) and Ferrari (RACE) indicates that BWA is currently a more attractive option for value investors due to its stronger earnings outlook and favorable valuation metrics [1][3][7]. Valuation Metrics - BWA has a forward P/E ratio of 9.57, significantly lower than RACE's forward P/E of 35.58, suggesting BWA is undervalued relative to RACE [5]. - The PEG ratio for BWA is 0.94, while RACE has a PEG ratio of 4.16, indicating that BWA's expected earnings growth is more favorable compared to its price [5]. - BWA's P/B ratio stands at 1.57, contrasting sharply with RACE's P/B of 20.75, further supporting BWA's valuation as more attractive [6]. Analyst Outlook - BWA currently holds a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while RACE has a Zacks Rank of 3 (Hold) [3]. - The positive earnings outlook for BWA enhances its attractiveness in the investment landscape, positioning it as a superior value option compared to RACE [7].

Company Performance - BorgWarner (BWA) has returned approximately 41.1% since the beginning of the calendar year, significantly outperforming the average return of 16.4% for Auto-Tires-Trucks companies [4] - The Zacks Consensus Estimate for BorgWarner's full-year earnings has increased by 3% over the past quarter, indicating an improving earnings outlook [3] - BorgWarner currently holds a Zacks Rank of 2 (Buy), reflecting strong analyst sentiment towards the stock [3] Industry Context - BorgWarner is part of the Automotive - Original Equipment industry, which consists of 51 individual stocks and currently ranks 85 in the Zacks Industry Rank [6] - The average performance of stocks in the Automotive - Original Equipment industry has been a loss of 1.4% this year, highlighting BorgWarner's superior performance [6] - Strattec Security (STRT), another stock in the Auto-Tires-Trucks sector, has also shown strong performance with a return of 94% since the start of the year [4][5] Future Outlook - Investors interested in Auto-Tires-Trucks stocks should monitor BorgWarner and Strattec Security, as both companies are expected to maintain their solid performance [7]

Group 1 - Operating conditions for auto suppliers have been challenging due to consumer affordability issues and uncertainty from auto OEMs adjusting production [1] - The industry is currently navigating a complex environment that affects both supply and demand dynamics [1]

Group 1 - Operating conditions for auto suppliers have been challenging due to consumer affordability issues and uncertainty from auto OEMs adjusting production [1] - The industry is currently navigating a complex environment that affects both supply and demand dynamics [1]