*By Michael Teich* Honeywell is cutting ties with its transportation systems business, but the spin-off's CEO considers it a mutual breakup. “We’re not about to reinvent our strategy,” Garrett Motion's president and CEO Olivier Rabiller said Monday in an interview on Cheddar. "The only thing it provides us is to work at our own speed.” Honeywell ($HON) opted to simplify its business, announcing in October of last year it was divesting Garrett Motion ($GTX) along with its home-products business. Rabiller said that allowed his company ー which debuted on the New York Stock Exchange on Monday ー to continue its "winning" strategy but at a faster pace. Shares of Garrett Motion ended down slightly in its first day of trading Monday, while Honeywell's stock reached a new record high. Garrett, which produces turbochargers and electric boosting technologies, may have had a slow start, but all is not lost. Companies like PayPal ($PYPL), which spun out of eBay ($EBAY) in 2015, have proven that splitting from a parent company can be a catalyst for growth. Shares of PayPal are up 127 percent since that separation. For Garrett Motion future growth will come from China, Rabiller said. The company is banking on that country's booming electric vehicle market. While overall car sales only grew 3 percent between 2016 and 2017 ー the slowest pace since 2011 ー EVs proved to be a bright spot. China logged sales of 578,000 vehicles in that market last year, up 72 percent from 2016. That accounts for less than 3 percent of total auto sales in the country, but the government's focus on electric vehicles presents a great opportunity, according to Rabiller. “It’s not only about electrification in China. It about having tougher emission standards,” he said. “This is a trend we see pretty much all around the world.” For full interview [click here](https://cheddar.com/videos/honeywell-spins-off-garrett-motion).

Share:
More In Business
Boeing defense workers on strike in the Midwest turn down latest offer
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
FBI’s NBA probe puts sports betting businesses in the spotlight
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More