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Turbo producer Garrett powers down as it files for bankruptcy

CY Foong · Sep 23, 2020 03:38 PM

Turbo producer Garrett powers down as it files for bankruptcy 01

Fans of turbocharged engines, please pour out a little motor oil for our fallen hero as legendary turbocharger manufacturer, Garrett Motion Incorporated has filed for chapter 11 bankruptcy. It has nothing to do with the popcorn brand of the same name.

Turbo producer Garrett powers down as it files for bankruptcy 02

The reasons for this sad turn of events were due to a combination of plunging sales and the additional financial burden that was brought on after Garrett became independent from longtime parent company, Honeywell International.

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Turbo producer Garrett powers down as it files for bankruptcy 01

According to an article by Benzinga, Olivier Rabiller, president and CEO of the newly Swiss-based company has said that the “financial strains of the heavy debt load and liabilities inherited in the spinoff from Honeywell – all exacerbated by COVID-19 – have created a significant long-term burden on our business”.

Turbo producer Garrett powers down as it files for bankruptcy 02

However, a spokesperson from Honeywell disputed the Garrett executive’s statements. The Honeywell spokesperson told The Wall Street Journal, alleging that Garrett’s bankruptcy filing is for the “single, improper purpose of avoiding the legitimate and reasonable financial commitments”.

Turbo producer Garrett powers down as it files for bankruptcy 03

For those that don't know, Garrett is considered a legend in turbochargers. Their turbos were fitted onto the first production turbocharged passenger cars, the Oldsmobile Jetfire and the Chevrolet Corvair Monza in 1962.

Turbo producer Garrett powers down as it files for bankruptcy 04

In motorsports, Garrett turbochargers powered the first-ever turbocharged Formula One car with Renault in 1977, won 6 world rally championships in a row with Lancia between 1987 and 1992, as well as powering all the winners of the 24 Hours of Le Mans from 2000 to 2019.

Turbo producer Garrett powers down as it files for bankruptcy 05

2020 hasn’t been kind to the automotive industry with renowned wheel manufacturer, BBS also filing for bankruptcy back in July. But this isn’t the end for Garrett as the company has found a potential new owner in investment group KPS Capital Partners which Garrett hopes will be picked up for $2.1 billion.

CY Foong

Writer

Traded advertising for a career that fits his passion for cars. Enjoys spotting cars during his free time and has a soft spot for Japanese Kei cars but drives a thirsty manual sedan.

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