An increase of 2.6 million new turbo vehicles expected by 2018
PLYMOUTH, Mich. � Oct. 3, 2013 � Honeywell (NYSE: HON) Turbo Technologies, the leading global developer of automotive turbochargers, expects sales of turbocharged commercial and passenger vehicles in North America to increase by 67 percent during the next five years reflecting the addition of 2.6 million more turbocharged vehicles on the road during that time.
Honeywell estimates current penetration of turbocharged commercial and passenger vehicles is currently at 17 percent of vehicle sales in North America and expects that number to increase to 31 percent of total sales by 2018. This dramatic growth curve led the EPA to recently project that 90 percent of new vehicles in the U.S. market could be turbocharged by 2025.
"Honeywell's turbo technologies will be part of more than 60 models in the United States in 2014 reflecting nearly 20 different brands," said Honeywell Transportation Systems President and CEO Terrence Hahn. "We see the U.S. market growing this year by approximately 22 percent from last year reflecting the addition of some 700,000 new turbocharged vehicles in 2013. Downsized turbocharged engines are a no compromise solution for consumers demanding great fuel economy and performance with the added benefit of reducing harmful emissions."
In 2025, the Corporate Average Fuel Economy (CAFE) regulations take full effect, requiring all new cars and trucks to achieve an average fuel economy of 54.5 miles per gallon. Given this objective, Honeywell estimates the number of turbocharged commercial and passenger vehicles sold in North America will reach 3.9 million in 2013, up from 3.2 million in 2012. By 2018, Honeywell expects the number to reach 6.5 million vehicles.
The U.S. is part of the turbo revolution Honeywell envisions will continue globally with demand growing in all regions: In Europe, Honeywell expects turbo gasoline applications to grow significantly by 2018 driving the light vehicle market to nearly 67 percent turbo penetration. In China, Honeywell expects turbo penetration to double from today's 4 million to more than 10 million vehicles by 2018 driven largely by gasoline applications. In India, Honeywell expects a turbo penetration increase from 46 percent today to 48 percent by 2018 with a focus on small diesel engine applications. On a global basis, turbo penetration is expected to grow from 30 percent in 2012 covering all segments to 38 percent by 2018. Each year Honeywell launches on average 100 new turbo applications globally. Currently, Honeywell has more than 500 programs in its product development pipeline while working with nearly every major global manufacturer. About Honeywell Honeywell (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; turbochargers; and performance 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 certain statements that may be deemed"forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
Media: Mike Stoller (734) 392-5525 firstname.lastname@example.org