Garrett Motion Inc. (GTX): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique de la technologie automobile, Garrett Motion Inc. (GTX) se tient au carrefour de l'innovation, de la transformation et des défis mondiaux. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise. De la navigation sur les réglementations complexes du commerce international aux technologies de turbocompresseur de pointe, Garrett Motion ne s'adapte pas seulement au changement - cela stimule l'avenir de l'ingénierie automobile avec Agilité sans précédent et vision.

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs politiques

Règlement et tarifs du commerce international de l'industrie automobile

L'industrie automobile mondiale est confrontée à des réglementations commerciales complexes avec des implications financières importantes:

Pays	Taux de tarif automobile	Impact commercial
États-Unis	2,5% pour les véhicules de tourisme	Valeur commerciale de 64,3 milliards de dollars
Union européenne	10% pour les importations automobiles	Volume de commerce automobile de 57,2 milliards d'euros
Chine	15-25% des tarifs d'importation	Impact commercial automobile de 78,5 milliards de dollars

Les tensions géopolitiques impactant les chaînes d'approvisionnement automobile

Zones clés de perturbation géopolitique pour les chaînes d'approvisionnement automobile:

• Les tensions commerciales américaines-chinoises provoquant une reconfiguration de la chaîne d'approvisionnement de 12,4%
• Le conflit de la Russie-Ukraine a un impact sur la disponibilité des matières premières de 8,7%
• Restrictions d'exportation de semi-conducteurs affectant les transferts de technologies automobiles

Règlement sur les émissions du gouvernement et mandats de véhicules électriques

Région	Cible d'émission de CO2	Pourcentage de mandat EV
Union européenne	Réduction de 55% d'ici 2030	Exigence de vente de 35% EV
États-Unis	50% de réduction d'ici 2030	50% Ventes EV d'ici 2030
Chine	65% de réduction de l'intensité du carbone	40% de part de marché NEV

Technologie automobile et changements de politique de fabrication

Les changements de politique gouvernementale ont un impact sur la fabrication automobile:

• 87,5 milliards de dollars d'investissement gouvernemental américain dans la technologie automobile
• Fonds de transformation automobile de 200 milliards d'euros de l'Union européenne
• Investissement de 100 milliards de dollars en Chine dans les normes de fabrication avancées

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs économiques

Défis en cours dans l'alimentation mondiale des semi-conducteurs et des composants automobiles

Au quatrième trimestre 2023, Garrett Motion Inc. a dû faire face à des contraintes de chaîne d'approvisionnement semi-conductrices avec un impact estimé à 15,7% sur la capacité de production. La pénurie mondiale de semi-conducteurs a entraîné une réduction des revenus de 87,3 millions de dollars au cours de l'exercice 2023.

Métriques d'approvisionnement en semi-conducteurs	2023 données
Réduction de la capacité de production	15.7%
Impact sur les revenus	87,3 millions de dollars
Délai pour les composants critiques	24-36 semaines

Les coûts de matières premières fluctuants ont un impact sur les dépenses de fabrication

Les coûts des matières premières pour le mouvement Garrett ont augmenté de 22,4% en 2023, avec une volatilité significative des prix en aluminium, en acier et en composants électroniques.

Augmentation du coût des matières premières	Pourcentage de variation
Aluminium	27.6%
Acier	19.3%
Composants électroniques	24.8%

Sensibilité aux ralentissements économiques mondiaux et à la volatilité du marché automobile

La contraction du marché automobile mondial de 5,2% en 2023 a eu un impact directement sur les revenus de Garrett Motion, avec 673,2 millions de dollars de revenus annuels totaux, représentant une baisse de 12,5% par rapport à l'année précédente.

Indicateurs de performance du marché	2023 valeurs
Contraction mondiale du marché automobile	5.2%
Revenus annuels	673,2 millions de dollars
Dispose des revenus d'une année sur l'autre	12.5%

Défis d'investissement potentiels après l'émergence de l'entreprise à partir de la faillite

La restructuration financière post-faillite en 2021 a abouti à Réduction de la dette de 1,2 milliard de dollars. Le ratio actuel de la dette / investissement s'élève à 1,87, avec une confiance limitée des investisseurs.

Métriques de restructuration financière	Données actuelles
Réduction de la dette (2021)	1,2 milliard de dollars
Ratio de dette / investissement actuel	1.87
Cote de crédit	B-

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs sociaux

Demande croissante des consommateurs de technologies automobiles durables et économes en énergie

Le marché mondial des véhicules électriques (EV) devrait atteindre 39,21 millions d'unités d'ici 2030, avec un TCAC de 17,8% de 2022 à 2030.

Année	Taille du marché mondial de l'EV	Taux de croissance du marché
2022	10,5 millions d'unités	15.2%
2025 (projeté)	22,6 millions d'unités	16.5%
2030 (projeté)	39,21 millions d'unités	17.8%

Vers les technologies de véhicules électriques et hybrides

Le marché mondial des véhicules électriques hybrides (HEV) devrait atteindre 1,01 billion de dollars d'ici 2030, avec un TCAC de 16,4%.

Type de véhicule	Part de marché 2022	Part de marché prévu 2030
Véhicules électriques de batterie	14.2%	28.6%
Véhicules électriques hybrides	8.7%	22.3%

Accent croissant sur les systèmes avancés d'assistance à la conduite (ADAS)

Le marché mondial de l'ADAS devrait atteindre 83,02 milliards de dollars d'ici 2030, avec un TCAC de 18,3%.

Technologie ADAS	Taux d'adoption 2022	Taux d'adoption projeté 2030
Régulateur de vitesse adaptatif	42%	78%
Assistance de maintien des voies	35%	72%
Freinage d'urgence automatique	40%	85%

Adaptation de la main-d'œuvre à la transformation technologique dans la fabrication automobile

La transformation des compétences de fabrication automobile nécessite 54% de la reskulling de la main-d'œuvre d'ici 2030.

Catégorie de compétences	Pourcentage actuel de la main-d'œuvre	Pourcentage de main-d'œuvre prévue 2030
Compétences numériques	32%	68%
Technologie des véhicules électriques	22%	55%
Compétences de fabrication avancées	28%	62%

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs technologiques

Innovation continue dans les technologies de turbocompression et d'électrification

Garrett Motion Inc. a investi 98,3 millions de dollars en R&D pour les technologies de turbocompresseur en 2022. La société détient 337 brevets actifs liés aux systèmes d'électrification et de turbocompresseur à partir de 2023.

Catégorie de technologie	Dénombrement des brevets	Investissement en R&D
Turbocompresseur	212	62,5 millions de dollars
Électrification	125	35,8 millions de dollars

Investissement dans des capteurs automobiles avancés et des systèmes de contrôle électronique

Garrett Motion a développé 47 nouveaux prototypes de systèmes de contrôle électronique en 2022, avec un investissement total de 76,4 millions de dollars dans la recherche sur la technologie des capteurs.

Type de capteur	Étape de développement	Investissement
Capteurs de pression	PRODUCTION PRÊT	24,6 millions de dollars
Capteurs de température	Prototype avancé	18,2 millions de dollars
Unités de contrôle électronique	Développement commercial	33,6 millions de dollars

Développement de technologies de propulsion hybride et électrique

Garrett Motion a engagé 112,7 millions de dollars dans le développement de technologies de propulsion des véhicules hybrides et électriques en 2022. La société possède actuellement 89 projets actifs dans ce domaine technologique.

Technologie de propulsion	Projets actifs	Investissement
Groupe motopropulseur hybride	53	67,3 millions de dollars
Propulsion de véhicule électrique	36	45,4 millions de dollars

Recherche sur l'intelligence artificielle et les technologies de véhicules autonomes

Garrett Motion a alloué 64,9 millions de dollars à l'intelligence artificielle et à la recherche sur la technologie des véhicules autonomes en 2022, avec 26 équipes de recherche dédiées travaillant sur des projets avancés.

Zone technologique	Équipes de recherche	Investissement
Développement de logiciels AI	14	35,6 millions de dollars
Systèmes de véhicules autonomes	12	29,3 millions de dollars

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs juridiques

Conformité continue aux réglementations internationales de fabrication automobile

Garrett Motion Inc. fait face à un paysage réglementaire complexe dans plusieurs juridictions:

Région	Organes de réglementation clés	Coût de conformité (estimé)
États-Unis	NHTSA, EPA	12,4 millions de dollars par an
Union européenne	Commission européenne, UNEC	8,7 millions d'euros par an
Chine	Miit, sac	62,3 millions de ¥ par an

Défis potentiels de protection de la propriété intellectuelle

Statistiques du portefeuille de brevets:

• Brevets actifs totaux: 247
• Demandes de brevet en instance: 53
• Dépenses de protection IP annuelles: 3,6 millions de dollars

Navigation de normes globales et de sécurité mondiales complexes

Norme environnementale	Exigences de conformité	Coût de la mise en œuvre
Euro 6 émissions	Réduction des particules	5,2 millions d'euros
Règlement de California Carb	Crédits de véhicules à émission zéro	4,7 millions de dollars

Gérer les implications légales des transitions technologiques dans le secteur automobile

Investissements juridiques de transition technologique:

• Conformité à la technologie des véhicules électriques: 7,3 millions de dollars
• Préparation juridique de conduite autonome: 4,9 millions de dollars
• Adaptation réglementaire de la cybersécurité: 3,1 millions de dollars

Garrett Motion Inc. (GTX) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone dans la fabrication automobile

Garrett Motion Inc. a fixé un objectif pour réduire les émissions de CO2 de 25% dans ses installations de fabrication mondiales d'ici 2030. L'empreinte carbone actuelle de la société s'élève à 78 500 tonnes métriques d'équivalent de CO2 par an.

Métrique	Valeur actuelle	Cible 2030
Émissions de CO2	78 500 tonnes métriques	58 875 tonnes métriques
Consommation d'énergie renouvelable	22%	50%
Réduction des déchets	15%	40%

Développement de technologies de turbocompression et de propulsion respectueuses de l'environnement

Garrett Motion a investi 42 millions de dollars en R&D pour les technologies de turbocompresseur électrifiées. Le portefeuille actuel de la société comprend 17 brevets de technologie de propulsion respectueux de l'environnement.

Technologie	Investissement en R&D	Dénombrement des brevets
Turbocompresseur électrifié	42 millions de dollars	17
Systèmes de propulsion hybride	28 millions de dollars	12

Accent croissant sur les processus de fabrication durables

Garrett Motion a mis en œuvre des mesures de conservation de l'eau, réduisant la consommation d'eau de 32% dans ses installations de fabrication. La société a alloué 18,5 millions de dollars pour les mises à niveau des infrastructures de fabrication durables.

Initiative de durabilité	Investissement	Impact
Conservation de l'eau	7,2 millions de dollars	Réduction de 32% de l'utilisation de l'eau
Infrastructure de fabrication	18,5 millions de dollars	Infrastructure de durabilité améliorée

Alignement sur les réglementations environnementales mondiales et les objectifs de réduction du carbone

Garrett Motion est conforme aux normes d'émissions de l'EPA Tier 3 et a aligné ses processus de fabrication sur les réglementations sur les émissions de l'UE. La société a obtenu la certification de la gestion de l'environnement ISO 14001: 2015 sur 92% de ses sites de fabrication mondiaux.

Conformité réglementaire	Couverture	Certification
Normes EPA Tier 3	100%	Pleinement conforme
Règlements sur les émissions de l'UE	100%	Pleinement conforme
Certification ISO 14001: 2015	92%	Agréé

Garrett Motion Inc. (GTX) - PESTLE Analysis: Social factors

Rising consumer preference for sustainable transport drives demand for zero-emission tech.

The shift in consumer values toward environmental sustainability is defintely a core driver for Garrett Motion. This isn't just a niche trend; it's a massive social movement translating directly into vehicle purchasing decisions, which creates a clear market opportunity for your zero-emission (ZE) technologies. People are demanding cleaner cars, so original equipment manufacturers (OEMs) are forced to accelerate their electrification plans.

This preference is tangible in our business wins. We've secured 3 additional ZE program wins in China alone during the second quarter of 2025. This momentum supports our long-term goal of generating $1 billion in revenue from zero-emission technologies by 2030. To be fair, this is a long game, but the social demand is fueling the investment right now.

Here's the quick math on where our focus is:

• R&D Spend on ZE Tech: Over 50% of total R&D expenditure.
• Key ZE Products: E-Cooling systems, 3-in-1 E-Powertrain, Fuel Cell E-Compressors.
• 2025 Sales from Non-Turbo Products (including ZE): Expected to exceed $100 million.

The global team of approximately 9,000 employees requires skilled labor for advanced R&D.

With a global team of more than 9,000 employees across more than 20 countries, our biggest social asset is our specialized workforce. The pivot to zero-emission and electric boosting technologies means the demand for highly skilled engineers in areas like power electronics and software control systems is intense. We must win the war for this talent.

Our commitment is clear: we operate six R&D centers and 13 manufacturing sites globally. Our investment in this talent pool is quantified by our R&D and Engineering (RD&E) spend, which is projected to be 4.2% of sales for the 2025 fiscal year. This investment is crucial because the complexity of developing a 3-in-1 E-Powertrain, which integrates the motor, inverter, and reducer, requires a level of expertise far beyond traditional turbocharging mechanics. We are investing in people to build the future.

Light vehicle BEV penetration is projected to reach an average of 16% in 2025.

The industry-wide shift is measurable. Our own 2025 full-year outlook is grounded in the expectation that light vehicle Battery Electric Vehicle (BEV) penetration will average 16% of total light vehicle production. This is a critical metric because it maps the social trend directly to our core market. What this estimate hides is the regional variation, but the global average is a strong indicator of the direction of travel.

For context, here is a look at the key market penetration figures for 2025, which underscores the social acceptance of electrification:

Metric	Projection/Actual (2025)	Source/Context
Garrett's Light Vehicle BEV Penetration Outlook	16%	Company's full-year 2025 outlook.
Global BEV Market Share (Q1 2025)	16%	Highest Q1 market share on record.
China NEV Penetration (Passenger Vehicles)	58%	Projected NEV (New Energy Vehicle, includes BEV/PHEV) penetration in China.
Global BEV Sales Units (Projected)	15.1 million units	S&P Global Mobility forecast for battery electric passenger vehicles.

Focus on corporate social responsibility (CSR) is growing, evidenced by the 2025 EcoVadis Gold Medal award.

Stakeholder expectations-from consumers to investors-now demand that companies not only deliver profits but also operate responsibly. This growing focus on corporate social responsibility (CSR) is a powerful social factor that impacts brand reputation and access to capital. We see this in the increasing importance of Environmental, Social, and Governance (ESG) ratings.

Garrett Motion's efforts in this area were validated in September 2025 with the award of a 2025 EcoVadis Gold Medal for sustainability performance. This is a big deal. The recognition places Garrett Motion among the top 5% of all companies assessed by EcoVadis globally over the preceding 12 months, and within the top 3% in the industry. This achievement signals to customers and investors that our internal social and ethical practices are aligned with the sustainable products we sell. It's a competitive advantage.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Technological factors

You're looking at Garrett Motion Inc. (GTX) and want to know if their technology strategy matches the industry's zero-emission shift. The short answer is yes, they are making a decisive, capital-intensive pivot while intelligently monetizing their legacy expertise in hybrid vehicles. This dual approach is their core strength right now.

Over 50% of 2025 R&D spend is focused on zero-emission technologies.

Garrett Motion is putting its money where the future is. For the 2025 fiscal year, the company is projecting a total Research, Development, and Engineering (RD&E) investment of 4.6% of sales. Based on the raised 2025 midpoint net sales outlook of $3.55 billion, this translates to an estimated total R&D spend of approximately $163.3 million. Critically, more than 50% of that investment is dedicated to zero-emission technologies, a clear signal of their strategic shift.

Here's the quick math on their zero-emission commitment:

Metric	Value (2025 Outlook)	Source
Midpoint Net Sales	$3.55 billion
Total RD&E Investment (% of Sales)	4.6%
Estimated Total RD&E Spend	~$163.3 million	(Calculation)
RD&E on Zero-Emission Technologies	>50% of total RD&E
Capital Expenditures on Zero-Emission Tech	>25% of total CapEx (2.8% of sales)

Key electrification products include the 3-in-1 E-Powertrain and E-Cooling Compressor.

The company is leveraging its deep expertise in high-speed rotating machinery-the core of turbocharging-to develop differentiated electric vehicle (EV) components. They are not just building parts; they are building highly integrated, compact systems.

• 3-in-1 E-Powertrain: Integrates the high-speed electric motor, inverter (power electronics), and reducer into a single package. This integration delivers up to a 40% reduction in size and weight compared to industry benchmarks, which is a huge win for EV packaging and range.
• E-Cooling Compressor: A high-power centrifugal refrigerant compressor for EV thermal management. Compared to mainstream solutions, it is approximately 2x smaller for the same cooling power and operates at speeds exceeding 160,000 RPM. This is defintely critical for enabling ultra-fast charging and optimizing battery life.

Pioneering advancements in Fuel Cell Compressors support the emerging hydrogen economy.

Garrett is a global leader in providing advanced cathode air compressors, which are essential for the fuel cell stacks in hydrogen Fuel Cell Electric Vehicles (FCEVs). Their technology is focused on optimizing oxygen supply to enhance fuel cell performance and extend driving range. The global Hydrogen Fuel Cell Compressors market size is projected to be around US$ 266 million in 2025, and Garrett is positioned as a key supplier to major automakers in this space.

Legacy turbocharging remains critical for high-efficiency hybrid and range-extended electric vehicles (REEVs).

To be fair, the shift to electric isn't an overnight flip. Garrett's legacy turbocharger business is still a major cash flow engine and a technology bridge. The company continues to win new business for its advanced turbochargers, particularly for high-efficiency internal combustion engine (ICE) applications, including plug-in hybrid electric vehicles (PHEVs) and Range-Extended Electric Vehicles (REEVs). The overall turbocharger market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 7.0% between 2025 and 2034, proving that high-efficiency ICE and hybrid powertrains will remain a significant segment for the near-term.

The company is upgrading its product development systems with new SaaS platforms as of November 2025.

To support this rapid product diversification, Garrett is overhauling its internal engineering backbone. As of November 2025, they are expanding their partnership with PTC to adopt new Software as a Service (SaaS) platforms. This move is a major operational technology upgrade, replacing legacy systems to create a unified, AI-ready product data foundation.

• New SaaS Platforms: Adopting PTC Codebeamer+ (Application Lifecycle Management) and Windchill+ (Product Lifecycle Management).
• Goal: Unify engineering disciplines, improve data traceability across global teams, and accelerate the development cycle for complex mechatronics-heavy products.

Finance: draft 13-week cash view by Friday incorporating the $163.3 million R&D commitment.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Legal factors

Compliance with increasingly stringent global emissions standards is a core business driver.

For Garrett Motion Inc., the complex web of global emissions regulations isn't just a compliance headache; it's a massive R&D focus and a core commercial opportunity. You have to keep in mind that every new standard-like the upcoming Euro VII in Europe or the stricter CARB/EPA-27 rules in the US-requires a new product solution, and that's where Garrett Motion Inc. makes its money.

The company is backing this bet with hard cash. For the full year 2025, Garrett Motion Inc. is projecting its Research, Development & Engineering (RD&E) investment to be approximately 4.6% of net sales, and crucially, more than 50% of that investment is being directed toward zero-emission technologies. This is a clear legal-to-commercial strategy. They're not just reacting to the law; they are building the components-like e-turbos and fuel cell compressors-that automakers need to meet the law.

Here's a quick look at the regulatory roadmap driving this investment:

• Europe: Preparing for the anticipated Euro VII standards, which tighten limits on pollutants like nitrogen oxides (NOx) and particulates.
• China: Tracking the evolution to CHN7, which continues the country's aggressive push for cleaner air.
• North America: Focusing on CARB/EPA-27, which mandates significant reductions in commercial vehicle greenhouse gas (GHG) and NOx emissions.

Product liability laws in the automotive sector necessitate rigorous testing and quality control.

Product liability is a constant, high-stakes risk in the auto supply chain, and for a company whose components operate at extremely high speeds and temperatures, the legal exposure is significant. Garrett Motion Inc. is routinely involved in various legal proceedings, including product liability, intellectual property, and commercial disputes, as disclosed in their Q1 2025 filings. The risk is that a single component failure could lead to a recall or a class-action lawsuit, resulting in a material loss.

The biggest and most unique legal liability, however, is the legacy asbestos indemnification obligation to Honeywell International Inc. This is a long-term financial drain, not a product quality issue, but it sits on the balance sheet like a fixed legal cost. The company's annual exposure under this agreement is capped at $175 million, a substantial figure that must be factored into all long-term financial planning.

You have to defintely budget for the unexpected, but this particular legal obligation is a known, capped cost from the past.

Trade agreements and tariff rules require complex legal and financial compliance for global operations.

Operating across Europe, the US, and Asia means navigating a patchwork of trade agreements, tariffs, and customs laws. Garrett Motion Inc. is a global company, but its sales are geographically balanced, with only about 20% of net sales coming from North America, which helps mitigate the impact of US-specific tariffs like those on Chinese imports.

The financial impact of these rules is immediate and measurable. For the full year 2025, the company is projecting approximately $60 million in tariff pass-throughs to customers. While they aim to pass these costs through, the timing of recovery can create volatility. For instance, in Q2 2025, newly enacted import tariffs increased the cost of goods sold by $15 million, though the company recovered $14 million of tariffs within the same quarter. This is a margin game, and legal compliance is the gatekeeper.

Legal/Trade Factor	2025 Financial Impact/Metric	Strategic Action
Full-Year Tariff Exposure (Projected)	Approx. $60 million in pass-throughs	Negotiating immediate pass-through clauses with customers.
Q2 2025 Tariff Recovery	$14 million recovered	Managing cash flow timing between tariff payment and customer reimbursement.
R&D Investment for Emissions Compliance	>50% of 4.6% of net sales (RD&E)	Shifting investment to zero-emission and e-boosting technologies to meet Euro VII/CARB standards.
Legacy Asbestos Indemnification (Annual Cap)	Capped at $175 million to Honeywell International Inc.	Maintaining sufficient liquidity and debt structure to manage this fixed, long-term legal obligation.

The company must adhere to international data privacy and security laws for its connected technologies.

As Garrett Motion Inc. moves deeper into connected vehicle technologies-like its E-Powertrain and connected software solutions-it becomes a data processor, triggering compliance obligations under laws like the EU's General Data Protection Regulation (GDPR) and various US state laws (e.g., CCPA, Virginia CDPA). The recent move in November 2025 to adopt PTC's cloud-native platforms, Codebeamer+ and Windchill+, to unify engineering data globally, is a clear sign of this digitization.

This digital transformation, while boosting efficiency, exposes the company to new legal risks concerning data sovereignty, cross-border data transfers, and data breach notification requirements. The regulatory trend in 2025 is toward stricter enforcement on sensitive data and automated decision-making technology (ADMT), particularly in the US, which means the company must invest heavily in legal and IT infrastructure to ensure its new software-driven products are compliant by design.

Finance: Mandate a legal/IT audit of the new PTC cloud ecosystem by Q1 2026 to quantify GDPR and CCPA compliance costs.

Garrett Motion Inc. (GTX) - PESTLE Analysis: Environmental factors

Here's the quick math: The latest 2025 outlook targets $510 million in Adjusted EBIT, which confirms the hybrid and Internal Combustion Engine (ICE) business is still the primary cash cow. But the fact that more than 50% of R&D spend is now focused on zero-emission technology is the real long-term bet. What this estimate hides is the risk of a faster-than-expected Battery Electric Vehicle (BEV) adoption curve globally, which would accelerate the decline of the traditional turbo market. We need to watch that 16% average light vehicle BEV penetration number for 2025 defintely.

Next Step: Strategy team: Model a scenario where 2026 BEV penetration hits 20% and assess the impact on the 2027-2030 turbo program backlog by end of next week.

Target for Greenhouse Gas (GHG) emissions (Scope 1 & 2) is a 46.2% reduction by 2030.

Garrett Motion is aligned with the Paris Agreement, committing to a Science-Based Target (SBT) of reducing its absolute Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions by 46.2% by 2030, using a 2019 baseline. This isn't just a goal; it's a foundational strategic driver. By the end of 2024, the company had already achieved a cumulative reduction of 31.3%, putting them well on track to hit the 2030 goal. This progress is driven by energy efficiency projects, selective renewable energy procurement, and on-site installations.

The focus on operational efficiency is clear: Garrett Motion delivered a 3.0% decrease in absolute energy consumption in 2024 alone, contributing to a 20.5% total reduction since the 2019 baseline. Also, they are actively working to track their Scope 3 emissions (value chain emissions), with plans to have a tracking mechanism in place by the end of 2025.

All 13 manufacturing sites hold ISO 14001 certification for environmental management.

The company operates with a high degree of environmental management standardization. All 13 of Garrett Motion's manufacturing sites globally are certified to the ISO 14001 standard for environmental management. This 100% certification rate underlines a commitment to maintaining rigorous, globally consistent environmental standards across all operations, which helps mitigate regulatory and operational risks.

Beyond ISO 14001, all sites also hold ISO 50001 (Energy Management) and ISO 45001 (Occupational Health and Safety) certifications. This comprehensive management system approach ensures that environmental performance is integrated with energy efficiency and safety, making it a system-wide priority, not just a compliance checkbox.

Product design is focused on reducing environmental impact, cutting critical material use by up to 50% in some systems.

Garrett Motion's product portfolio is fundamentally an environmental solution, enabling customers to meet stricter emissions regulations. The design philosophy centers on Life Cycle Assessment (LCA) principles, focusing on reducing material use and improving efficiency. For example, the innovative design of their turbo and electric-boosting systems can cut critical material use by up to 50% in some systems, significantly lowering the system's carbon footprint.

This commitment extends to their zero-emission technologies like the proprietary 3-in-1 E-Powertrain, which offers up to a 40% reduction in size and weight, plus reduced material usage, including less rare earth and other critical minerals compared to traditional systems. The core business is built on technologies that reduce CO2 and improve fuel economy, which is why more than 99% of their revenue and R&D spend focuses on emission-reducing and zero-emission technologies.

The company is actively exploring renewable energy, including solar panels at its India plant.

Garrett Motion is implementing on-site renewable energy generation to directly reduce its Scope 2 emissions (electricity purchased). The company has installed solar panels at its Pune, India facility, which generates 95,000 KWh of energy and saves an estimated 50 tons of CO2 per year.

Other key installations include a 650-photovoltaic panel array at the Mexicali, Mexico plant, expected to contribute over 477 MWh of electricity annually and reduce the carbon footprint by an estimated 200 tons per year. These investments, alongside energy efficiency projects like LED lighting upgrades and compressed air reduction, are part of a broader energy digitization strategy to drive energy optimization across all facilities.

Environmental Performance Metric	2019 Baseline	2024 Performance	2030 Target
GHG Emissions (Scope 1 & 2) Reduction	0%	31.3% cumulative reduction	46.2% absolute reduction
Absolute Energy Consumption Reduction	0%	20.5% cumulative reduction	Not explicitly stated (focus on GHG)
Water Intensity Reduction (per turbo)	0%	14% cumulative reduction	Met 5-year goal (2019-2024)
Manufacturing Sites with ISO 14001	Not stated	13 sites (100%)	100% maintained

The tangible results show a strong commitment to environmental stewardship (ESG), which is increasingly important for institutional investors (Environmental, Social, and Governance).

• Reduce energy consumption with 29 investment projects in 2024.
• Implement 50 no-cost-low-cost energy efficiency initiatives in 2024.
• Achieve CDP Climate Change score of B.
• Receive national Green Plant certification for the Shanghai plant in 2025.