Honeywell International Inc (HON - Free Report) recently announced its intention to offer more turbocharged diesel powered vehicles to the US customers. Turbocharged vehicles are more fuel efficient than gasoline vehicles. With the recent surge in fuel prices, auto manufacturers are focused on building cars that are more fuel efficient and appealing to its customers. Turbochargers enable manufacturers to shrink engine size and weight while maintaining driving experience. 2014 Versions of Jeep Grand Cherokee, Ram 1500, Chevrolet Cruze and Mazda 6 are some of the vehicles benefiting from Honeywell turbochargers.
The turbo technology is well suited to meet the needs of the car segment in emerging markets. As per the recent industry projections, sales of passenger cars with turbocharged diesel engines are expected to witness a growth of 22% in the next five years. Sale of clean diesel passenger cars in North America was up more than 25% in 2012 and has been continuously increasing since then. Honeywell possesses the best R&D turbo resources, the widest product portfolio of any turbo supplier and an experienced engineering network. Consequently, Honeywell expects turbo diesel growth of 3% to 4 % by 2018.
In Europe, turbo charged vehicles are already in great demand. With turbocharged gasoline engines and turbo diesel engines representing 75% of the vehicles in Europe, Honeywell continues to maintain its position as the global turbo leader with 100 new turbo launches annually and around 500 applications in its production pipeline.
Honeywell is a global diversified technology and manufacturing company with a wide range of aerospace products and services, 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, business and transportation.
The company faces intense competition from industry bigwigs like Crane Co. (CR - Free Report) and Macquarie Infrastructure Company LLC (MIC - Free Report) . Honeywell currently has a Zacks Rank #2 (Buy). One of its competitors Textron Inc, (TXT - Free Report) carries a Zacks Rank #2 (Buy).