HON - Garrett Motion: Turbo Boost Over The Full Cycle

This article was selected to be shared with PRO+ subscribers - find out more here.

Introduction

Garrett Motion (GTX) is a big player in making turbos for diesel and gasoline passenger cars as well as commercial vehicles and aftermarket sales. Investors are worried about both a cyclical downturn in auto sales in the short term and secular decline in turbos as automakers shift to BEVs over the long term. I think these concerns are over-stated because turbos are part of the path for Original Equipment Manufacturers (OEMs) to meet CO₂ standards,