BorgWarner Company

BorgWarner Incorporated is an automotive parts manufacturer that began when four companies joined together in 1928, each bringing with it a specialization. For example, Borg & Beck, which was founded in 1904, produced carburetors. One year after its formation, BorgWarner acquired Morse Chain. By this time, Morse Chain was a nearly 50-year-old company that manufactured automobile chain.

In 1940, the company began producing automotive transfer cases. Through the decades, BorgWarner and its subsidiaries have produced both automatic and manual transmissions, turbochargers, the Sprag Cluch and the HY-VO chain, just to name a few. In 1965, subsidiary Holley Carburetor Company built its 100 millionth carburetor.

BorgWarner’s design and technological advancement continued until 1987, when the company was bought out and ceased to exist. BorgWarner Automotive, Inc. was created in its place and it became a subsidiary of parent company BorgWarner Corporation. Six years later, BorgWarner Automotive became an independent company. BorgWarner continued to expand through the 1990s and early 2000s, staying focused on engine and drivetrain automotive components.

BorgWarner Company and Asbestos

Until the dangers of asbestos were publicly known in the early to mid-1970s, it was commonly used in automotive parts, especially brake pads and clutches. Documents have shown that BorgWarner supplied asbestos-containing clutches to General Motors from the 1960s through the 1980s. Consequently, many automotive employees were exposed to asbestos while manufacturing these products. Exposure to asbestos has been proven to cause the rare cancer mesothelioma as well as asbestosis and lung cancer.

A court case from the early 2000s documented a brake mechanic’s exposure to asbestos from the result of grinding down disk brake pads made by BorgWarner. The mechanic worked in a small 10-foot by 8-foot room and grinding brakes often created a dust cloud that remained in the air and was inhaled by the mechanic. In 2001, his doctor diagnosed him with asbestosis – a lung disease caused by asbestos exposure.

BorgWarner Company and Asbestos Litigation

BorgWarner is one of the few companies that has managed to avoid serious monetary losses from asbestos litigation. A 2006 BorgWarner annual report states that by the end of 2006, the company was named in about 45,000 asbestos-related claims. It is worth noting that about 35,000 of those cases were from three jurisdictions, which is an unusually high concentration.

Also in its 2006 annual report, the company appeared confident that the financial costs of asbestos-related litigation would be minimal. BorgWarner resolved 26,000 claims in 2006, and of those, less than 170 included any monetary compensation on the part of the company. Statistics were similar in 2005, when it had about 38,000 claims and paid out money in only 295 cases. Though BorgWarner has not paid out much in settlement costs, it has paid significant defense fees. Its 2006 annual report states that by the end of that year, the company had paid over $16 million in defense and related litigation fees. It also had an estimated future liability of nearly $40 million.

To date, BorgWarner has not filed for bankruptcy like many other companies who have faced thousands of asbestos-related claims. While the company has been successful in fighting the majority of cases filed against them, those who have developed mesothelioma or another asbestos-related disease from working with their products should still consider taking legal action. For information on the legal options available, the Mesothelioma Center has created a legal section to answer your questions.