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Why Volkswagen Turmoil is No Big Deal for BorgWarner, Harman

Baird’s David Leiker and team don’t think Volkswagen’s admission that it rigged emissions on its cars will have any long-term impact on suppliers like BorgWarner (BWA), Gentex (GNTX), Harman (HAR) and Delphi Automotive (DLPH). They explain:

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Over the weekend, news reports suggest that Volkswagen installed software on its vehicles that was used to circumvent emission standards. This software enabled the engine to run “cleaner” when it was detected to be under test and run “dirtier” when it was not under testing. This allowed the vehicle’s performance to be...