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CEO of BorgWarner Inc.
Automobile Parts Manufacturing
Market Cap: $5.0B
2009 was an extraordinary year for BorgWarner and
the global automotive industry. Due to an unprecedented
economic downturn, Tim faced serious challenges such as managing cash
flow, fighting to secure liquidity, and maintaining profitability
for BorgWarner. He worked to develop the financial capability within
BorgWarner to emerge from the recession as a stronger company.
Tim led BorgWarner with a strategy focusing on operational excellence and efficiency. He was able to
unify people from the shop floor to the boardroom re-focusing on
the financial discipline necessary to be successful in the crisis.
He anticipated and reacted quickly to market conditions,
right-sizing the business operations to achieve positive cash flow
and earnings for the year. He targeted an aggressive 20% decremental
margin on the change in operating income versus the reduction in
sales and was successful in achieving this target. Tim
strengthened the financial structure of the company with a successful
convertible bond offering during a time when the market was reacting
unfavorably to the auto industry.
BorgWarner Net Income Growth (LFY):
Turnaround from loss of -35.6M to profit of +27M
despite major decline in revenues In a very difficult year for the
global auto industry. The strategies that the CEO
implemented allowed BorgWarner to regain profitability in the third
quarter of 2009 and to be one of two automotive companies to
maintain an investment grade rating without sacrificing BorgWarner’s future in the
area of new business or R&D spending.
Timothy M. Manganello has been chairman and chief executive
officer of BorgWarner Inc. since June 2003. Mr. Manganello began his
career in the automotive industry in 1973. He was named to his
current position in February 2003, after having served for one year
as president and chief operating officer. Prior to holding the
position of COO, he was executive vice president of the company and
served as president and general manager of BorgWarner TorqTransfer
Systems from January 1999 to 2002. During his career at BorgWarner,
he has held senior management positions in operations, sales, and
Before joining BorgWarner in 1989, Mr. Manganello held product
engineering management positions at Chrysler Corporation from 1973
to 1981, and sales management positions at PT Components-Link Belt
from 1981 to 1988. A resident of Bloomfield Hills, Michigan, Mr.
Manganello holds a bachelor’s degree and master’s degree in
mechanical engineering from the University of Michigan. He also
completed the Advanced Management Program at Harvard Business School
and is a graduate of the Chrysler Institute program.
He is a member of the board of directors of Bemis Co., Inc.
(NYSE), and the Detroit Branch Chairman of the Federal Reserve Bank
of Chicago. He is also a member of the University of Michigan
College of Engineering’s National Advisory Committee; and the
chairman of the Executive Committee of the Board of Trustees for the
We are successful because we
have leading technology, we have strong focus on financial
discipline, and we have broad customer base - Timothy Manganello, CEO of BorgWarner Inc.
Consumers want better fuel economy and reduced emission in every
region of the world and these needs are driving demands for
BorgWarner's leading power train technologies like turbo-charging
and dual-clutch transmission modules for which we are launching new
programs and expanding capacity. Two recent events make the future
in brighter for us; first, the U.S. is considering even stricter
fuel economy standards. In a proposal to reform corporate average
fuel economy or CAFE rules, The National Highway Traffic Safety
Administration laid out guidelines for a 3% fuel economy improvement
in both passenger car and light trucks for model years 2011 to 2015
- Timothy Manganello, CEO of BorgWarner Inc.
BorgWarner Inc. has become a de facto European
company as employees have increased in Europe while declining in
North America - Timothy Manganello, CEO of BorgWarner Inc.
We are bringing advanced
technology to China. We would rather be the first one into China
with new technology, and gain the first-mover advantage -
Timothy Manganello, CEO of BorgWarner Inc.
We will do an acquisition that
will help BorgWarner, that will bring in new technology, or more
diversified customer base, or put us in a part of the world that are
a growing one...Most of our acquisitions would be doing globally,
not necessarily in America, mainly because we are looking for the
leading technologies, not just companies. We do an acquisition
in Japan to begin business with Toyota. - Timothy Manganello, CEO of BorgWarner Inc.
We figure that we can come up
with the best technology solutions to include the economy and
emissions. The OEMs would want to do business with BorgWarner.
- Timothy Manganello, CEO of BorgWarner Inc.
We have three operating
principles, which are based on BorgWarner's powerful or lasting
competitiveness in the world. Firstly, we have set up plants in
different parts of the world to get closer to our customers and to
meet their demands better. If we have a plant in an area, we will
bring the local business to that plant. Secondly, when we are unable
to satisfy our customers in an area due to economic or other
factors, we will transfer some products to the more competitive
manufacturing bases, such as India and China, a mode that has been
proven by the manufacturing capabilities of our heat energy system.
Thirdly, to boost its global competitiveness, BorgWarner will
encourage its India and China plants to serve customers from other
countries and regions. For examples, a BorgWarner's heat energy
plant in China is providing products directly to the plants of Ford
South Africa and American Chrysler, bypassing the BorgWarner's
plants in the U.S. or other countries and regions. BorgWarner will
continue to follow the three operating modes all the time to enhance
its global competitiveness and long-term competitiveness as one of
its major tasks. - Timothy Manganello, CEO of BorgWarner Inc.
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