Garrett Motion Inc. (NASDAQ:GTX) Q4 2023 Earnings Call Transcript

Michael Ward: So what type of — when you look at the technology, what type of impact does that have on content? Is it a 20% to 30% increase in content per unit?

Olivier Rabiller: I think we published, by the way, recently the content per vehicle that we have on the different technologies. So, we can refer to that again. If we move to a variable geometry turbo charger, we are obviously increasing the content by a percentage. And then if we move to electric turbo charging or electric boosting, there is another increase that can even double the price of the turbo charging system.

Michael Ward: Okay. And just as far as turbo penetration, I see good data on the U.S. market on where we are with turbos. And it’s like 42%. How does that compare in Europe? And in Europe, you have a higher hybrid concentration, smaller vehicles. Obviously, driven by the higher gas prices in Europe, relative to the U.S. Do you have a kind of turbo penetration number for the European market and what it looks like relative to North America?

Olivier Rabiller: In Europe, we are between 85% and 90%.

Michael Ward: Okay. It looks like if we start to go…

Olivier Rabiller: And if you look at the three regions that we are serving between — just to make a shortcut between Europe, China and the U.S., the U.S. are lagging behind the two other regions. So the potential in the U.S. is huge.

Michael Ward: Okay. And then in addition, you get the increase if you go to hybrids and presumably higher tech, so you get growth and then additional content. So, I’m looking at the right things.

Sean Deason: Yeah.

Olivier Rabiller: Yes. You’re looking at it. Absolutely.

Michael Ward: Thanks very much.

Operator: [Operator Instructions] And ladies and gentlemen, I am showing no additional questions. I’d like to turn the floor back over to Eric Burge for any closing remarks.

End of Q&A:

Eric Burge: I want to thank everybody for the time you spent today reviewing our 2023 results and our outlook for 2024. And please contact me directly if you have any further questions. Thank you.

Operator: And ladies and gentlemen, with that we’ll conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.