A pioneer move for Electric Commercial Vehicles: Garrett and SinoTruk sign Letter of Intent to bring leading high-speed electrified powertrain to E-trucks

Rhea-AI Summary

Garrett Motion Inc. (NYSE: GTX) and China National Heavy Duty Truck Group Co., (SinoTruk) have signed a Letter of Intent to collaborate on advanced technologies for electric commercial vehicles. The partnership aims to develop a next-generation E-powertrain for SinoTruk's product portfolio, with mass production targeted for 2027.

The alliance will focus on Proof of Concepts for e-powertrain systems in light and heavy trucks, emphasizing energy efficiency and simplified vehicle integration. Garrett's high-speed electric motor technology allows for smaller, lighter, and more efficient electrified powertrains, while SinoTruk will contribute its expertise in high-speed transmission and beam-axle integration.

This collaboration is expected to set new standards for power density in the industry and accelerate the adoption of zero-emission technologies in the commercial vehicle market, particularly in China.

Positive

• Partnership with major Chinese truck manufacturer SinoTruk
• Development of next-generation E-powertrain for commercial vehicles
• Targeted mass production of electric trucks by 2027
• Potential for increased market share in the growing electric commercial vehicle sector
• Opportunity to set new industry standards for power density in E-trucks

Negative

• Long timeline to mass production (2027) may delay revenue realization
• Potential risks associated with entering a new market segment
• Dependency on successful collaboration with SinoTruk for project success

ROLLE, Switzerland and PLYMOUTH, Mich., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (NYSE: GTX) and China National Heavy Duty Truck Group Co., Ltd. (SinoTruk) signed a Letter of Intent (LoI) to enhance cooperation in advanced technologies for electric commercial vehicles, aiming to jointly develop leading next-generation E-powertrain for application in SinoTruk's product portfolio, with the aim of joining forces to start mass production of trucks equipped with this next gen E-powertrain by 2027.

^{Nils Martens, VP & GM Electric Powertrain of Garrett, and Li Xuefeng, Director of New Energy Business, Chairman of New Energy Commercial Vehicle at SinoTruk Group, signed the LoI}

Under this alliance, the two companies will advance Proof of Concepts (PoCs) for e-powertrain systems in both light and heavy trucks, with a focus on energy efficiency and simplified vehicle integration. The projects aim to expand the adoption of zero-emission technologies in the commercial vehicle market, particularly in China.

Olivier Rabiller, CEO of Garrett said: “Garrett's capability to handle high-speed electric motors allows us to design significantly smaller and lighter electrified powertrains while maintaining leading energy efficiency. It allows for easier packaging, higher power and torque, and less material usage. This partnership with SinoTruk will accelerate the development of high-speed solutions that not only improve vehicle performance, but also contribute to global emission reduction goals, with E-trucks on the road by 2027. This will be an industry first: setting a new standard for power density!”

“This collaboration marks a significant milestone in our efforts to bring cutting-edge, zero-emission solutions to the commercial vehicle sector,” said Mr. Wang Chen, President of SinoTruk. “This partnership will help to advance our innovation leadership in the truck industry. We will complement Garrett’s high-speed E-drive with our high-speed transmission expertise and integrate into the best-in-class beam-axle. We look forward to working closely with Garrett to deliver breakthrough technologies that combine both performance and cost benefits for our fleet customers.”

About Garrett Motion China
Garrett established its presence in China in 1994 and was among the first global companies to introduce turbocharging technology into the country. Headquartered in Shanghai, Garrett has two world-class, advanced manufacturing facilities in Shanghai and Wuhan, as well as a R&D center. The company employs more than 1,000 people, including a China R&D team of over 200 specialists with end-to-end engineering and service capabilities. Garrett boasts lasting partnerships with more than 40 global and Chinese automakers. It offers a comprehensive portfolio of turbocharging technology for gasoline, diesel, natural gas, hybrid and zero emission technology for battery electric vehicles.

About Garrett Motion Inc.
Garrett Motion is a differentiated technology leader serving automotive customers worldwide for nearly 70 years. Known for its global leadership in turbocharging, the company develops transformative technologies for vehicles to become cleaner and more efficient. Its advanced technologies help reduce emissions and reach zero emissions via passenger and commercial vehicle applications – for on and off-highway use. Its portfolio includes turbochargers, electric turbos (E-Turbo) and electric compressors (E-Compressor) for both ICE and hybrid powertrains. In the zero-emissions vehicle category, the company offers fuel cell compressors for hydrogen fuel cell vehicles as well as electric propulsion and thermal management systems for battery electric vehicles. Garrett boasts five R&D centers, 13 manufacturing sites and a team of more than 9000 people located in more than 20 countries. Its mission is to empower the transportation industry to further advance motion through unique, differentiated innovations. For more information, please visit www.garrettmotion.com.

Contacts:

Media	Investor Relations
Amanda Jones	Eric Birge
+41.79.601.07.87 amanda.jones@garrettmotion.com	+1.734.392.5504 eric.birge@garrettmotion.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/13aef79f-91cc-4c1b-ac1a-30b27cb051f7

FAQ

What is the purpose of the Letter of Intent between Garrett Motion (GTX) and SinoTruk?

The Letter of Intent aims to enhance cooperation in advanced technologies for electric commercial vehicles, specifically to jointly develop a next-generation E-powertrain for SinoTruk's product portfolio.

When does Garrett Motion (GTX) expect to start mass production of trucks with the new E-powertrain?

Garrett Motion and SinoTruk aim to start mass production of trucks equipped with the next-generation E-powertrain by 2027.

What are the key benefits of Garrett Motion's (GTX) high-speed electric motor technology?

Garrett's high-speed electric motor technology allows for smaller, lighter electrified powertrains with leading energy efficiency, easier packaging, higher power and torque, and less material usage.

How will the partnership between Garrett Motion (GTX) and SinoTruk impact the commercial vehicle market?

The partnership is expected to accelerate the adoption of zero-emission technologies in the commercial vehicle market, particularly in China, and set new standards for power density in the industry.