New Fuel Standards May Give BorgWarner (BWA) and Johnson Controls (JCI) A Boost

The government’s new fuel standards may give a life to BorgWarner and Johnson Controls, according to Chicago’s Daily Herald. The new mileage standards require automakers to raise the average efficiency of the vehicles they sell to 35.5 miles per gallon by 2016.

BorgWarner could benefit from these standards by selling its superchargers to give small, more efficient engines more power, while Johnson Control’s work in the field of lithium batteries could pay off as hybrids become more common.

In the Daily Herald article, representatives for both companies described how they might benefit from the new regulations:

“Hybrid technology is the only technology that can deliver this level of fuel economy,” Alex Molinaroli, president of Johnson Controls Power Solutions, said in an e-mailed statement.

BorgWarner generally views the new rules “positively” as it creates “one common standard that improves fuel economy, reduces emissions, and is performance-oriented,” spokeswoman Erika Nielsen wrote in an e-mail.

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