James Mahalan

James Mahalan, on behalf of Edison Yu, asked about the specific drivers behind the mix impact on volumes, inquiring if it was geographically based or due to declining diesel penetration. He also sought further detail on the 'green shoots' observed in the commercial vehicle segment.

Answer

Olivier Rabiller (President and CEO, Garrett Motion) clarified that the mix impact primarily resulted from strong gasoline growth, particularly in China where margins differ, ongoing weakness in commercial vehicles (though stabilizing), and softness in the aftermarket, especially commercial vehicle off-highway due to destocking. He noted that commercial vehicle 'green shoots' refer to signs of stabilization in China's off-highway sector, including agricultural and construction equipment.

James Mahalan asked about the specific drivers behind the mix impact on volumes, inquiring if it was geographically based or linked to declining diesel penetration, and sought further details on the observed 'green shoots' in the commercial vehicle sector.

Answer

Olivier Rabiller (President and CEO, Garrett Motion) clarified that the mix impact stemmed from strong gasoline turbo growth (especially in China with different margins), ongoing weakness in commercial vehicles (though stabilizing with green shoots in China's off-highway segment), and destocking in the commercial vehicle off-highway aftermarket. He noted that industrial commercial vehicle turbos are performing well.