Garrett CEO Olivier Rabiller went a step further: "Garrett is not a typical automotive Tier 1," he said. "We are pretty well a hidden gem within the Honeywell portfolio."
Turbochargers are Garrett's core business, especially those used in diesel-powered light vehicles. Garrett accounted for $3.1 billion in revenue last year, operating as Honeywell Transportation Systems. The company estimates there are more than 100 million Garrett turbos in use globally.
It is a big moment for Honeywell — but also a moment of industry uncertainty.
Rabiller said Garrett is keeping an eye on proposals to ban internal combustion engines, which are being considered by governments in several major markets, including France, Germany, the United Kingdom and China.
He said some of the proposals seem to confuse the definitions of vehicles that have only internal combustion engines, and could be banned, with hybrids, which might be allowed.
"There is a lot of confusion, and there is some political positioning," he told Automotive News after the presentation. "We are monitoring that very closely, obviously."
Light-vehicle diesel products accounted for 48 percent of Honeywell Transportation Systems' 2017 revenue, the company said. Products for gasoline-powered light vehicles represented 22 percent, commercial vehicles 15 percent and aftermarket 12 percent.
Rabiller said the company isn't worried about a recent decline in light-vehicle turbodiesel sales around the industry. Analysts say emissions scandals are partly to blame for lower diesel penetration in Europe.
Rabiller said the decline has hit small vehicles the hardest, while Garrett's light-vehicle diesel penetration is mostly in bigger sedans and light trucks.
"Diesel will not disappear," he declared, because diesel produces 10 to 15 percent less carbon dioxide than gasoline. "Carmakers need that. They need diesel to reach CO2 emission limits in Europe, in China."
Meanwhile, Garrett expects to benefit from an increase in hybrid sales in the coming years. "Hybridization is, in fact, very good news for us," Rabiller said.