HON - Garrett Motion And The Fallout From The Coronavirus In China's Wuhan Motor City
Investment thesis
The coronavirus is wreaking havoc on China's motor vehicle sector, and many global carmakers and original equipment manufacturers (OEMs) will be severely affected in the short term. The operations and market valuations of various western companies are already suffering. However, this also provides opportunities as the business models of some companies, like turbocharger maker Garrett Motion (GTX), are suited for a downturn like this one due to a significant reliance on variable costs.
Wuhan's significance for China's motor vehicle industry
Wuhan is home to 11 million people and is one of