Honeywell International and BorgWarner have settled their dispute over the patent-infringement lawsuit brought by BorgWamer over a titanium wheel used in engine turbochargers.
Though BogWamer sought more than $100 million, Honeywell agreed to pay an amount of $32.5 million for the license to use the BogWarner patents.
This is additional proof that BorgWarner is a global technology leader in powertrain solutions including turbochargers, said Timothy M.
Manganello, Chairman and Chief Executive Officer, BorgWarner. We are proud of our long history of leading turbocharger innovation and our continued investment in research and development. BorgWarner is pleased with its return on this investment — both through the development and sale of innovative products and through the receipt of fees related to patent infringement lawsuits.
Turbocharger , which compress air to improve the power and efficiency of smaller engines, have become more widely used in United States since the federal government's corporate average fuel economy targets were raised to 35.5 mpg by the 2016 model year.
Adding a turbo can enable a four-cylinder engine to deliver the power of a V-6 while retaining the size, weight, and fuel-efficiency advantages of the smaller engine. BorgWarner gets 30 percent of its total sales from turbochargers and has a 33 percent share of the market . By the end of this financial year it is expecting a rise in its sales by 23 percent.
With the growing market for turbocharger, Honeywell International and BorgWarner are wrestling to ride the crest of the market.
By 2015, about 20 percent of automobiles made in North America will be turbocharged, Honeywell forecasts.