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Diversified technology company Honeywell International Inc. (HON - Analyst Report) recently announced that indigenous technology of its Turbo Technology division has been used to design and build the turbocharger for Chevrolet Cruze Clean Turbo Diesel, the latest entry in to the market from the stable of automotive major General Motors Company (GM - Analyst Report).

The turbocharger will facilitate the car to reach 46 mpg in highway driving, an industry-best for emission control and fuel efficiency, covering nearly 700 miles with a single tank of fuel. With a 148-horsepower 2.0-liter diesel engine, the turbocharger will further enable Chevrolet Cruze to accelerate from 0 – 60 mph in less than nine seconds.

Honeywell also recently disclosed that its turbochargers will also be utilized in Honda Amaze, a compact sedan from Honda Motor Co., Ltd. (HMC - Analyst Report). The turbocharger would be used in the 1.5L i-DTEC diesel engine of Honda Amaze and utilizes exhaust gas to drive a turbine that operates a compressor, which feeds fresh air to the engine. This in turn reduces emission and improves fuel economy at desired efficiency levels. Consequently, the car is billed to be the most fuel-efficient car in India in its category at 25.8 km per litre.

With rising fuel costs and stringent rules and regulations for emission controls for a cleaner and pollution-free environment, turbocharging technology is increasingly gaining in popularity across the world. Sales of passenger cars with turbocharged diesel engines are also expected to surpass 1 million per year by 2017. Honeywell aims to capitalize on this business potential by aggressively pursuing turbocharger production. At present, the company supplies turbochargers to various local and global OEMs (original equipment manufacturers) through its manufacturing facilities in India, which serves as an export hub for automobile firms across the world.

Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, including control, sensing and security technologies for buildings, homes and industry; turbochargers; automotive products; specialty chemicals; electronic and advanced materials; process technology for refining and petrochemicals; and energy efficient products and solutions for homes and business.

Honeywell organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and has the potential to earn consistent above-average returns.

Presently, Honeywell has a Zacks Rank #2 (Buy), while another industry participant Compass Diversified Holdings (CODI - Snapshot Report) also carry a Zacks Rank #2 (Buy).

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