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Westport Fuel Systems Gets Core Electronics Supply Contract

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Westport Fuel Systems Inc. (WPRT - Free Report) recently procured a long-term contract entailing the supply of key electronic control units to a leading Tier One automotive supplier. This agreement encompasses the supply of electric control units over a span of seven years with estimated revenues of $58 million.

From the first quarter of 2021, Westport Fuel Systems will manufacture and supply the electronic control units, which will be installed in electric water pumps of two light-duty vehicle models of the counterparty automotive original equipment manufacturer (“OEM”) in Europe. The electric coolant pump is the key component of the vehicle cooling system. The integration of the electric control units in the pump will ensure lower energy consumption and lesser carbon emissions.

According to David M. Johnson, CEO of Westport Fuel Systems, this new contract confirms the competitiveness of the company’s electronics product offerings and manufacturing capabilities.

This Canada-based auto company is a developer, manufacturer and supplier of advanced alternative fuel systems and components. Westport Fuel Systems’ technology and products allow the use of low-carbon fuels, such as natural gas, propane, renewable natural gas or hydrogen in combustion engines. The use of natural gas instead of petroleum-based fuel reduces emission and cost.

Adoption of stringent environmental regulations, mandating greenhouse gas emission reductions in key markets around the world, has augmented opportunities for Westport Fuel Systems to raise revenues and market share. Moreover, this supply contract further validates the company’s ability to offer diversified and competitive products and services to the global automotive industry. It also reiterates the company’s focus on clean transportation by supplying products that provide environmental benefits.

Zacks Rank and Other Stocks to Consider

Westport Fuel Systems currently sports a Zacks Rank #1 (Strong Buy). It has witnessed a decline of 28.3% year to date, underperforming its industry’s decline of 0.6% over the same period.

Some other top-ranked stocks in the auto space include General Motors (GM - Free Report) , Ford Motor (F - Free Report) , and Fox Factory Holding Corp. (FOXF - Free Report) . General Motors sports a Zacks Rank of 1 while Ford and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has appreciated 44.9% year to date, whereas Ford and General Motors have declined 26.7% and 19%, respectively.

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