Back to top

Image: Bigstock

WABCO, FAW Jiefang Form JV to Build Control Systems in China

Read MoreHide Full Article

WABCO Holdings Inc. has inked an agreement to form a joint venture (JV) with FAW Jiefang Automotive Co., Ltd. to improve efficiency and safety of commercial vehicles. The JV will develop control systems for vehicles in China. The collaboration will initiate from 2019, with the production of WABCO's advanced MAXX single-piston air disc brake (ADB).

WABCO is a leading global provider of advanced technology, which has sold more than six million single-piston ADB systems. Further, the company’s high-performance single-piston ADB technology can be used in all types of commercial vehicles that consist of light, medium and heavy-duty platforms.

The new JV will focus on heavy-duty trucks, using WABCO’s lightweight and less component-based single-piston air disc brake technology. Further, it has been proven that ADB technology delivers high standard of reliability, safety and performance.

Wabco Holdings Inc. Price and Consensus

 

Moreover, the JV is the initial step toward a bigger collaboration between the two companies. Both have plans to collaborate for the development of advanced braking systems for self-driving, active safety systems and fleet management systems (FMS). These developments will enable manufacturers of commercial vehicles and fleets to raise standards of safety and efficiency for such vehicles.

Per management, the collaboration will aid both WABCO and FAW Jiefang to offer better services to customers in China and, thus, strengthen the market position.

Price Performance

In the past three months, WABCO’s stock has gained 1.4%, outperforming 5.2% decrease recorded by the industry it belongs to.

 



Zacks Rank & Key Picks

WABCO currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include PACCAR Inc. (PCAR - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 16.1%.

Honda has an expected long-term growth rate of 3%. Shares of the company have increased 2.8% in the past three months.

Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 32.3%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in