Honeywell International's plan to spin off its turbocharger business next year will create a standalone automotive company with annual revenue of approximately $3 billion.
The man leading the turbo-heavy Honeywell Transportation Systems unit, CEO Olivier Rabiller, 47, spoke about the spinoff with Automotive News Europe Managing Editor Douglas A. Bolduc.
Q: How is the spinoff going to change Honeywell Transportation Systems division?
A: We plan to remain a technology leader on the turbo side, as well as fund our new growth areas. The spinoff gives us the opportunity to accelerate this because as an independent company, you make your own investment decisions.
Your division has benefited from Honeywell's aerospace division in a several areas, including your move into electrification. Will that door close once the spinoff is completed?
It is true that we initially leveraged some of the skills from the aerospace business. Since then, we have become self-sufficient in terms of electrification. Today, we are developing our own controllers, our own software to manage the controllers and even the electric motor technology.
What are you telling your employees and customers about this move?
We have told them that the company doesn't stop because it is undergoing a spinoff.
Is this going to change the way your company does business?
We are a technology company first and will remain a technology company after the spinoff.
How many turbocharger launches does the company do a year?
About 100. In addition, any given point in time, we are working on between 300 and 400 engine programs.
But this move takes the company beyond turbochargers?
Exactly. The mission is to leverage our new technology portfolio for those automotive industry challenges that are not being addressed by the classic automotive players.