You are here: How did BorgWarner transform itself from debt-bound to profit-laden with ProfitAbility?
When BorgWarner staged a leveraged buyout in 1987, it assumed a hefty debt of 4.2 billion (USD). A public offering of company stock offered some relief, but the lingering debt hangover pushed business unit managers to focus laser-like on fiscal responsibility and good cash flow. “We surveyed employees to learn what they needed most, and they told us—overwhelmingly—that they wanted more financial expertise,” recalls Skip Cline, who, at the time, was the automotive group’s controller. (Today he’s the VP of acquisition coordination and special projects.) “We had to focus on cash flow, and we needed to train people.”