On October 15, 2025, PHINIA Inc. entered a settlement with BorgWarner, agreeing to pay $31 million in Q4 2025, $21 million in Q1 2026, and $26 million throughout 2026, resolving tax-related claims from their 2023 spin-off. Additionally, BorgWarner will reimburse PHINIA about $7 million in taxes, and the settlement will result in an estimated loss of $39 million for PHINIA in Q3 2025.