Daimler AG is starting up a new turbocharging business, and aims to become Europe’s third-largest turbocharger supplier in 3 to 5 years.
The company currently gets 50% of its turbochargers from IHI Charging Systems, while the remainder is sourced from BorgWarner and Garrett. Garrett is currently the market leader in turbochargers worldwide, with its turbos holding 56% of market share, with Borgwarner coming in second at 25% and IHI at 7%, with the remaining 12% shared by various other small suppliers.
“Our dependence on the turbocharger suppliers was huge. We decided to invest in our own operation to have competition in the marketplace,” said Thomas Weber, Daimler board member for R&D.
Turbo suppliers are currently having it good because of the increase in turbo demand – most manufacturers are looking into ways to downsize engine displacement but add turbochargers. There is also a growing demand for diesel engines, of which nearly all use turbochargers in modern times. Daimler also intends to increase the use of gasoline-based turbocharged engines, in line with their latest DiesOtto concept engine.
Another company expected to join the turbocharger supply market soon is Robert Bosch GmbH – will a small turbo from Bosch end up on a Campro engine soon?