Garrett Turbos Bankrupt

[Leroy Peterson]

Surprised no one has brought it up yet considering the amount of turbo threads around.
 

https://www.thedrive.com/news/36636/turbocharger-manufacturer-garrett-files-for-bankruptcy

Not saying the company won't be bought out, maybe it will. Could be a very different company. Either way, (decent) performance turbo options just got a lot more limited.
I would have thought Honeywell would have kept them going through hard times, seems like the opposite happened.

Not going to be surprised if in a few years there's a sudden surge of demand for "period" correct GT and GTX turbo's to go with people's increasingly priced japanese resto-mod builds. I mean, somehow T88 & T66 turbos still have a market.

[GTSBoy]

Uek. Not good news.

Hopefully the administration and/or asset sale process leaves a functioning business producing the same turbos and that they eventually get back to being able to pursue product R&D again.

[admS15]

Just filed for voluntary chapter 11 bankruptcy to protect their long term future due to covid. Is being sold to a private equity group for $2.1 biliion.

 

https://www.roadandtrack.com/news/a34109553/turbocharger-maker-garrett-files-bankruptcy-protection/

[SilverECR33]

my bro told me today, couldnt believe it!.

[joshuaho96]

The turbo business itself is fine, the problem is actually with all the random cruft that Honeywell tacked onto Garrett to spin off the transportation systems division. Stuff like Bendix brake components because they used to have asbestos in the brake pads.

[MoMnDadGTR]

On 25/09/2020 at 5:26 PM, joshuaho96 said:

The turbo business itself is fine, the problem is actually with all the random cruft that Honeywell tacked onto Garrett to spin off the transportation systems division. Stuff like Bendix brake components because they used to have asbestos in the brake pads.

i was going to mention this but your exactly right. as far as the garrett turbos we run on our rb's they will always be around.  

[GTSBoy]

On 9/26/2020 at 7:56 AM, joshuaho96 said:

The turbo business itself is fine, the problem is actually with all the random cruft that Honeywell tacked onto Garrett to spin off the transportation systems division. Stuff like Bendix brake components because they used to have asbestos in the brake pads.

Actually, it's not that at all. The turbo business is bankrupt. The turbo business was spun off by itself, but Honeywell somehow managed to put all those Bendix asbestos liabilities onto Garrett on its way out the door.

https://www.autonews.com/suppliers/garrett-motion-suing-honeywell-over-ongoing-asbestos-liabilities

Garrett is actually in some peril as a result. They launched the lawsuit, have since had to file for Ch 11, and will either disappear or go through period of restructuring/pain, same as any company that goes through Ch 11. The bankruptcy is at least partially caused by COVID-19 because turbo sales are down by something huge, like 40%. Some of that is aftermarket, but I imagine that OEM consumption went right down. For a company that was struggling for other reasons, loss of a significant fraction of turnover can be a death knell.

[niZmO_Man]

Finally KKK [turbos] can make a come back

[r32-25t]

Weren’t they an off shoot of borg Warner?

[BK]

3 hours ago, r32-25t said:

Weren’t they an off shoot of borg Warner?

They bought them in 97, then sold KKK to Siemens. This will be proper shit for the industry if Garrett goes down...