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BorgWarner (BWA) and WM Motors Tie Up to Aid EV Industry

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BorgWarner Inc. (BWA - Free Report) has entered into a three-year agreement with WM Motor, an auto manufacturer in China. Both the companies will collaborate to set up transportation model for smart city. Per the agreement, BorgWarner will provide its entire range of electric propulsion technologies and efficient electrical application systems, including high-performance electric drive modules (eDM).

Per management, its collaboration with China’s one of the emerging players in the auto market will aid BorgWarner to discover business opportunities in the electric vehicle (EV) industry. The companies will jointly add to the development of the EV industry, with their electrical systems and high-performance electric power products. This marks a major step for BorgWarner’s growth in China’s EV market.

However, both the parties have previously collaborated for WM Motor’s first model EX5. Introduced in April, EX5 is a first fully electric sports utility vehicle, offered with interactive experience. For the first model of its kind in the EV industry, BorgWarner provided its high-performance eDM.

BorgWarner Inc. Price and Consensus

Price Performance

In the past three months, BorgWarner’s stock has lost 11.7%, underperforming 3.5% decrease recorded by the industry it belongs to.



Zacks Rank & Key Picks

BorgWarner currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Advance Auto Part, Inc. (AAP - Free Report) , AutoZone, Inc. (AZO - Free Report) and Nissan Motor Company (NSANY - Free Report) . Advance Auto Part sports a Zacks Rank #1 (Strong Buy) while AutoZone and Nissan carry a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Advance Auto Part has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have gained 45.5%.

AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have gained 21.8%

Nissan has an expected long-term growth rate of 4.3%. Shares of the company have increased 3% over the past month.

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