BorgWarner’s aftermarket and fuel systems divisions are to be renamed ‘Phinia’.
The announcement was made at the same time as it was revealed that Brady Ericson will serve as President and Chief Executive Officer, and Chris Gropp will serve as Executive Vice President and Chief Financial Officer of the separate, publicly traded newco created from the spin-off of the two segments. Both are old hands at BorgWarner and its predecessor companies.
“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. “Today’s announcement is also an exciting next step that personifies and gives an identity to what we had referred to as ‘newco’, now Phinia.”
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“I am honoured 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,” said 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,” said 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.”
Neither Gropp nor Ericson commented on why Phinia was chosen as a name, or what it means. However, we think it is likely to have come from the Scots Gaelic name ‘Phinian’ which roughly translates as ‘beauty’ (although ‘Phinia’ means ‘pine’ as in the tree).
The proposed spin-off is expected to be completed in late 2023, subject to satisfaction of the regulators.
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