Turbo Technologies Key Messages 1. THE MARKET IS GROWING: Turbocharging is the most affordable “green” technology available today to increase fuel economy without compromising performance. “Hybrids and EVs are getting the attention and subsidies, but turbos are the technology that will get us to CAFE targets! ” Turbo market share increasing . . . a. In the U.S., total light vehicle turbo penetration is currently 7%; turbos will capture at least 23% of the U.S. light vehicle market by 2015. b. In the U.S., light vehicle gas penetration is currently 4% and is expected to grow to at least 20% by 2015 while diesel penetration is expected to remain at 3%. c. Through 2015, gas turbo will grow faster than diesel penetration in North America, China and Europe. d. In Europe, turbo gas penetration is currently 12% and diesel penetration is 46%; gas turbos will capture 25% of the market, while diesel penetration will dip to 42% by 2015. e. In China, turbo gas penetration is currently 5% and diesel penetration is 6%; gas turbos will capture 10% of the market while diesels will capture 9% by 2015. While engines become smaller globally . . . Engine Downsizing U.S. China Europe 2008 3.6L 1.8L 1.8L 2020 2.9L 1.6L 1.4L f. In 2008, the average engine size was 3.6L in the U.S., and 1.8L in China and Europe. By 2020, Honeywell predicts the average engine size will be 2.9L in the U.S., 1.6 in China and 1.4 in Europe.
Transcript
Turbo Technologies Key Messages
1. THE MARKET IS GROWING: Turbocharging is the most affordable “green” technology available today to increase fuel economy without compromising performance.
“Hybrids and EVs are getting the attention and subsidies, but turbos are the technology that will get us to CAFE targets!”
Turbo market share increasing . . .
a. In the U.S., total light vehicle turbo penetration is currently 7%; turbos will capture at least
23% of the U.S. light vehicle market by 2015.
b. In the U.S., light vehicle gas penetration is currently 4% and is expected to grow to at least 20% by 2015 while diesel penetration is expected to remain at 3%.
c. Through 2015, gas turbo will grow faster than diesel penetration in North America, China and Europe.
d. In Europe, turbo gas penetration is currently 12% and diesel penetration is 46%; gas turbos will capture 25% of the market, while diesel penetration will dip to 42% by 2015.
e. In China, turbo gas penetration is currently 5% and diesel penetration is 6%; gas turbos will capture 10% of the market while diesels will capture 9% by 2015.
While engines become smaller globally . . .
Engine Downsizing
U.S. China Europe
2008 3.6L 1.8L 1.8L
2020 2.9L 1.6L 1.4L
f. In 2008, the average engine size was 3.6L in the U.S., and 1.8L in China and Europe. By 2020, Honeywell predicts the average engine size will be 2.9L in the U.S., 1.6 in China and 1.4 in Europe.
2. HONEYWELL = LEADING TURBO COMPANY: Honeywell Turbo Technologies is the global market leader in turbocharging and is winning new turbo programs in Europe, Asia and the U.S.
Honeywell is the leading turbo company . . .
a. Honeywell has been winning 40% of all new business globally in 2010; next best competitor
is at 20%
b. Honeywell is launching 15 new technologies on 100 platforms this year
c. Honeywell will be working on 400 new engines in the next five years, 100 of those engine platforms will happen this year
d. In the U.S., Honeywell’s technology featured on the: 1. Chevrolet Cruze 1.4 gas turbo to get 40 mpg highway 2. Ford EcoBoost V6 gas models including the Ford Flex, Ford Taurus SHO, Lincoln MKS
and Lincoln MKT 3. Ford F350 Superduty pickup is first with VNT Dualboost—two back‐to‐back
compressor wheels within one housing and first ball bearing application in a mainstream light duty vehicle
e. Recent launches in Europe/China include:
1. China: TBD 2. Europe: First ball‐bearing turbo launc in the Daimler 3.0L engine & First
turbocharged Nano 2 cylinder diesel engine. First turbo in Multiar engine – Best new engine of 2010
3. Honeywell Turbo Technologies HELPING HON: Honeywell Turbo Technologies is a bright star in the Honeywell organization overall, where synergies across business units have led to some of today’s most influential innovations.
a. Innovative ball bearing technology to be showcased at the 2010 Paris Motor Show, is a
result of collaboration and synergies between Honeywell Transportation Systems and Honeywell Aerospace.
b. This remains true across Aerospace, Transportation, ACS, and UOP as Honeywell focuses over 50% of its portfolio on sustainability.
Honeywell Turbo Technologies to be profitable as it supplies automakers with a cost‐effective solution to meet the 2016 CAFE standards….
c. The increase in Q2 earnings for Honeywell was the first in six quarters as demand for
Honeywell Turbo Technologies is recognized around the world as the leading
manufacturer of engine boosting systems for passenger cars and commercial vehicles. The
business is organized globally and is headed by its President, Alex Ismail, who is also President
& CEO of Honeywell Transportation Systems.
Honeywell turbochargers offer the very latest in boosting technologies to improve vehicle
performance and driveability while increasing fuel efficiency and reducing emissions. For
passenger cars and light trucks, the Honeywell GT series covers the entire diesel and gasoline
engine range from 0.6L to 6.0L. For commercial vehicles, there is a Honeywell turbocharger for
virtually every on and off-highway engine application, covering power ratings from 60hp to over
4000hp.
It was Honeywell’s development and introduction of VNT™ turbochargers that
transformed the ability of car manufacturers to fully deploy the torque and fuel economy
advantages of direct injection diesel engines. The latest generation of VNT™ delivers 30% more
boost than its predecessor at just 90% of back pressure.
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2 – Turbo Technologies
Honeywell also pioneered TwinTech turbocharging by introducing the technology for
Caterpillar ACERT engines for commercial vehicles. Next, Honeywell introduced the world’s
first TwinTech Parallel system for diesel application on several PSA vehicles. In 2008,
Honeywell became the turbocharger supplier for two landmark gasoline vehicles – BMW X6
(V8 engine) and Ford (first EcoBoost V6 Engine) – and went on to launch new diesel and
gasoline technologies for small displacement engines, confirming its status as a key player in
these two growing segments. Most recently, Honeywell unveiled a groundbreaking TwinTech
Parallel system for the new Jaguar XF 3.0L V6 Diesel - the most advanced, powerful and
efficient Jaguar diesel ever created. The application of two small turbos and a Honeywell
patented sequential control valve ensures optimum boost at low engine speed, so maximizing
driveability and fuel economy, while a second free-floating turbo is activated in parallel at high
engine speeds to deliver best-in-class peak power.
Behind the company’s impressive track record of innovations is a world-wide
engineering structure that stretches from the U.S. to France, from China to UK, from Japan to
Korea and from the Czech Republic to India. Wherever customers are located, the aim is to
provide a seamless pathway that begins with turbo concept and product development and leads to
program application and launch. Working over different time zones, Honeywell provides
dedicated support to customers on a regional and worldwide basis, utilizing some of the world’s
most advanced engineering and manufacturing processes and facilities.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology
and manufacturing leader, serving customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive products; turbochargers; and
specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New
York, London, and Chicago Stock Exchanges. For more news and information on Honeywell,
please visit www.honeywellnow.com.
# # #
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings
HONEYWELL AFTERMARKET SERVICE – TECHNICAL EXCELLENCE AND
COMPLETE CUSTOMER SUPPORT
Millions of motorists around the world benefit from the exceptional performance,
torque, fuel efficiency and emissions control delivered by Garrett® by Honeywell VNT™
turbochargers.
These technologically advanced turbos are perfectly calibrated by expert engineers
within Honeywell to match the performance demands of automotive manufacturers for
specific applications, ensuring seamless integration with fuel injection and engine
management systems.
It is this commitment to excellence that defines Garrett® VNT™ technology…and
which also characterizes the support delivered by Honeywell through Aftermarket
partnerships that reach across 70 countries.
“The rapid adoption of turbocharger technology among OEMs inevitably translates
into a vibrant Aftermarket for us and we now have in place the distribution network, the
technical support and the product mix and range to offer unparalleled support to the users of
Garrett® turbochargers,” says Ed Goodwin, Director, Global Aftermarket at Honeywell
Turbo Technologies.
Honeywell’s success stems from the company’s innovative turbocharging
technologies and its global capabilities. It is the twin demands of performance and emissions
control that make turbocharging an increasingly important element in today’s automotive
environment – but Aftermarket customers also need expert support and advice to optimize
technological benefits. That’s where the Aftermarket distributor program comes in.
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2- Aftermarket services
The Honeywell Aftermarket network extends to almost 400 authorized distributors
located across EMEA, the Americas and Asia/Pacific – and all are supported by a dedicated
Aftermarket team coordinated through the head office based in Rolle (VD) in Switzerland.
This technological leadership and our global footprint ensure that Honeywell offers
both the widest product range available on the aftermarket network and the most
comprehensive customer support. Its portfolio includes more than 2000 part numbers for
turbos and Center Housing Rotary Assemblies (CHRA – central part of the turbo). The range
covers all sizes of diesel and gasoline engines - from 0.6 to 6.0L for passenger cars, up to
16.0L for commercial vehicles, and up to 120L for Off-Highway applications.
Every distributor is required to meet Honeywell’s rigorous qualifying criteria,
including providing fully trained Aftermarket professionals to ensure world-class
turbocharger service standards. In return, Honeywell provides dedicated sales, marketing and
customer teams, regular product and customer-focused training seminars, together with a
technical hotline managed by turbo experts. All this is augmented by online information,
cataloguing and ordering services, plus regular engineering and new product bulletins.
Garrett® turbochargers are products of Honeywell Turbo Technologies, a division of
Honeywell Transportation Systems. With $4.6 billion in revenues in 2008, Honeywell
Transportation Systems also manufactures Bendix® brake products, Fram® filters,
Prestone® antifreeze, Autolite® spark plugs and Holts® automotive products.
Honeywell International (www.honeywell.com) is a Fortune 100 diversified
technology and manufacturing leader, serving customers worldwide with aerospace products
and services; control technologies for buildings, homes and industry; automotive products;
turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares
are traded on the New York, London, and Chicago Stock Exchanges. For more news and
information on Honeywell, please visit www.honeywellnow.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934,including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings
ORIGINAL GARRETT® TURBOS FROM HONEYWELL PROVE WHOLE-LIFE BENEFIT
Vehicle owners tempted by the lure of cheaper copy or remanufactured VNT™ turbos
should be aware of the pitfalls of making what often turns out to be a false economy, and may
even be heading for serious turbo and engine damage.
Research undertaken by Honeywell Turbo Technologies shows that its market-leading
Garrett® range of turbos delivers significantly better whole-life value than lower-cost non-genuine
alternatives when taking into account reliability, performance, fuel efficiency and longevity.
“We understand the economic pressure everyone is feeling at the moment, but choosing a
poor-quality copy turbo or a remanufactured VNT™ turbo is truly a false economy,” says Ed
Goodwin, Director, Global Aftermarket at Honeywell Turbo Technologies. “Garrett® turbos meet
the exacting original specifications of passenger car and truck manufacturers and deliver levels of
performance and a whole-life* return on investment that is not achievable with non-genuine turbos
that fall below Honeywell’s quality standards. There is also the risk that the use of copy or
remanufactured turbos could lead to significant engine damage.”
VNT™ Turbos – Excellence in Engineering and Performance
When Honeywell introduced the Garrett® VNT™ (Variable Nozzle Turbine) turbocharger
in 1991, it heralded the arrival of the world’s most successful engine boosting system.
Honeywell’s VNT™ technology – now in its third generation – is installed in millions of
cars around the world and continues to enable automotive manufacturers to raise the bar on
performance. More power, more torque, greater fuel efficiency and lower emissions – VNT™ is
truly a technology in tune with the needs of the 21st century.
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2 – Garrett® Turbos from Honeywell
Garrett® VNT™ turbos are highly complex units, engineered and calibrated to meet the
exacting performance parameters of automotive manufacturers. For example, the specialist
process of setting the turbo’s minimum flow vane position takes account of the VNT’s intricately
engineered composition and its performance-critical tolerances and involves using a highly
accurate turbine flow bench to measure and compensate for any variation in gas flow. Highly
skilled technicians then set and lock the minimum flow vane position to suit the requirements of
each individual application. It is only when the ‘minimum flow vane open’ position is set that it is
possible to calibrate the unit (to three decimal places), using four checkpoints to ensure correct
operation.
Each of these steps is vital in ensuring the optimum performance of Garrett® VNT™
turbochargers. Indeed, these engineering complexities cannot be compromised – which is why the
company’s official Aftermarket distributors are committed to supplying only new Garrett®
VNT™ turbos that are quality assured and matched to the original OEM specification.
Copy Turbos – Not up to the Task
Every single Garrett® turbocharger distributed through the global Aftermarket is
guaranteed to meet the original specification demanded by car and truck manufacturers: the same
performance, the same calibration and the same whole-life advantages – without any of the risks
associated with poor-quality copy turbos sold around the world as supposed replacements.
Research shows that around 70% of copy turbos have faults with bearing systems, which
can lead to serious failures. And while bearing problems are most commonplace in copies, the
quality of the bolts joining the turbine housing to the center housing can also be an issue. The
bolts are known to ‘relax’, which can lead to gas leakage, mechanical damage and oil leakage that
can in turn contaminate the catalytic converter or the DPM system.
“Virtually every copy turbo that we have tested has difficulty coping with the stresses and
temperatures associated with modern passenger car and truck engines,” says Ed Goodwin. “And
with the growing complexity of turbo technology linked to increasing demands for performance,
fuel efficiency and emissions control, the problems associated with copy turbos can only get
worse.”
In fact, not even an economic case can be made for using copies – tests performed by
Honeywell show that Garrett® turbos deliver around four times the whole-life value of copy
turbos.
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3 – Garrett® Turbos from Honeywell
Copy and Remanufactured Turbos – Potential Risks
Copies of Honeywell’s best-in-class Garrett® turbos – or remanufactured turbos using
substitute parts - can lead to serious performance issues. These include:
▪ Low flow/pressure, causing poor response
▪ Over-rich diesel fuel/air mix, causing excessively high temperatures, damaging both the
turbo and the engine
▪ High flow/pressure, causing over-speeding of the turbo, wheel bursting and damage to
turbo and engine
▪ Excessive boost pressure, causing physical damage to the engine
The use of these non-genuine products may also impact negatively on engine efficiency
and on the environment. The potential problems include:
▪ Reduced Performance – leading to lower vehicle value and poor driveability on the road
▪ Increased Fuel Consumption – leading to higher running costs and greatly increased
whole-life expenditure
▪ Increased Emissions – leading to higher CO2 and NOx output, which could mean
vehicles being identified as un-roadworthy at statutory inspections
▪ Conflict with the engine management system – leading to vehicles running in reduced
power safety mode and creating immediate conflict with the ECU on engine start-up
Comments Ed Goodwin: “Our customers rely upon our commitment to technical
excellence and world-class manufacturing processes – and that’s why our distributors will supply
only new Garrett® turbochargers guaranteed to meet the engine requirements specified by OEMs
in terms of power output, reliability, emissions control and fuel efficiency.”
Garrett® turbochargers are products of Honeywell Turbo Technologies, a division of
Honeywell Transportation Systems. With $4.6 billion in revenues in 2008, Honeywell
Transportation Systems also manufactures Bendix® brake products, Fram® filters, Prestone®
antifreeze, Autolite® spark plugs and Holts® automotive products.
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4 – Garrett® Turbos from Honeywell
Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology
and manufacturing leader, serving customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive products; turbochargers; and
specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New
York, London, and Chicago Stock Exchanges. For more news and information on Honeywell,
please visit www.honeywellnow.com.
* (footnote page 1) This does not modify Honeywell’s standard contractual warranty for
aftermarket turbochargers which is limited to the earlier off 12 months, 100,000 km, or 18 months
from Honeywell’s delivery to buyer.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934,including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings
