Borgwarner (BWA) risk factors, FY2024 10-K

Risks related to our strategy

1. 01Our portfolio strategy may prove unsuccessful
2. 02Goodwill and indefinite-lived intangible assets, which are subject to periodic impairment evaluations, represent a significant portion of our total assets. An impairment charge on these assets could have a material adverse impact on our financial condition and results of operations
3. 03The failure to realize the expected benefits of acquisitions and other risks associated with acquisitions could adversely affect our business
4. 04We may not be able to execute dispositions of assets or businesses successfully

Risks related to the spin-off of PHINIA Inc

1. 05The spin-off of PHINIA may not achieve the anticipated benefits and may expose us to additional risks
2. 06Potential liabilities pursuant to the spin-off of PHINIA could materially and adversely affect our business

Risks related to our industry

1. 07Conditions in the automotive industry may adversely affect our business
2. 08We face strong competition
3. 09If we do not respond appropriately, the evolution of the automotive industry could adversely affect our business
4. 10We may be subject to potential governmental investigations and related proceedings relating to vehicle emissions standards

Risks related to our business

1. 11We are under substantial pressure from OEMs to reduce the prices of our products
2. 12We continue to face volatile costs of commodities used in the production of our products and elevated levels of inflation
3. 13We may not achieve some or all of the expected benefits of our restructuring plans and our restructuring actions may adversely affect our business
4. 14Changes in U.S. administrative policy, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on us
5. 15We use important intellectual property in our business. If we are unable to protect our intellectual property or if a third party makes assertions against us or our customers relating to intellectual property rights, our business could be adversely affected
6. 16We are subject to business continuity risks associated with increasing centralization of our information technology (“IT”) systems
7. 17A failure of or disruption in our information technology infrastructure, including a disruption related to cybersecurity, could adversely impact our business and operations
8. 18Our business success depends on attracting and retaining qualified personnel
9. 19Our profitability and results of operations may be adversely affected by new business launch difficulties
10. 20Part of our workforce is unionized, which could subject us to work stoppages
11. 21Work stoppages, production shutdowns and similar events could significantly disrupt our business
12. 22Our benefit plan expenses and obligations may fluctuate depending on various factors, including changes in interest rates, changes in regulations and plan asset returns
13. 23We are subject to extensive environmental regulations that are subject to change and involve significant risks
14. 24Our operations may be affected by greenhouse emissions and climate change and related regulations
15. 25We have liabilities related to environmental, product warranties, litigation and other claims
16. 26Compliance with and changes in laws could be costly and could affect our operating results
17. 27Changes in tax laws or tax rates taken by taxing authorities and tax audits could adversely affect our business
18. 28We are subject to risks related to our international operations
19. 29Our business in China is subject to aggressive competition and is sensitive to economic, political, and market conditions
20. 30A downgrade in the ratings of our debt could restrict our ability to access the debt capital markets
21. 31We could incur additional restructuring charges as we continue to execute actions in an effort to improve future profitability and competitiveness and to optimize our product portfolio and may not achieve the anticipated savings and benefits from these actions

Risks related to our customers

1. 32We rely on sales to major customers
2. 33We are sensitive to the effects of our major customers’ labor relations

Risks related to our suppliers

1. 34We could be adversely affected by supply shortages of components from our suppliers
2. 35Suppliers’ economic distress could result in the disruption of our operations and could adversely affect our business
3. 36We are subject to possible insolvency of financial counterparties

Other risks

1. 37A variety of other factors could adversely affect our business