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General Motors (GM), Navistar Team Up for Hydrogen Truck Project
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General Motors (GM - Free Report) recently inked a deal with Navistar International (NAV), per which it will supply the latter with fuel-cell electric-vehicle technology for bringing more hydrogen-powered long-haul trucks on the road.
Highlights of the Deal
The collaboration between General Motors and Navistar is aimed at providing an all-inclusive one-stop solution for fleet customers seeking to buy zero-emissions hydrogen fuel cell trucks.
General Motors manufactures hydrotec fuel cells in Michigan per a joint venture with Honda (HMC - Free Report) . Per the latest deal with Navistar, General Motors will be packaging its fuel cells into power cubes. Each power cube contains more than 300 hydrogen fuel cells, along with thermal and power management systems. These are compact and easy to package into many different applications.
The Navistar fuel-cell trucks, which will be based on the company's International RH Series fuel cell electric vehicle, will each use two of the Hydrotec power cubes.
J.B. Hunt Transport (JBHT - Free Report) will to be the first customer to test the new semi trucks in a pilot program commencing by the end of 2022. The company has pledged to test the solution on dedicated routes and share crucial insights of the program. The first trucks will likely be rolled out in 2024. The companies are planning to launch a competitive solution with a powertrain capable of more than 500 miles of range and a refueling time of less than 15 minutes.
The deal also includes OneH2, a North Carolina-based hydrogen fuel cell company, which will supply its hydrogen fueling solution and will be in charge of hydrogen production, storage, delivery and safety. Per the agreement, Navistar will also take a minority interest in OneH2. The financial details of the partnership have not been disclosed yet.
Rationale Behind the Alliance
Amid the heightening climate-change concerns, there is an emphasis by key markets around the globe to restrict carbon emissions from cars and trucks, which is contributing to development of both battery-enabled and hydrogen fuel-cell electric vehicles (FCEV) that might be widely available in recent times.
Hydrogen fuel cells, which generate electricity for the truck's motors through the chemical combination of stored hydrogen and atmospheric oxygen, with the emission of only water as a by-product, have been always propagated as a green vehicle option. This is because hydrogen fuel cell powertrains do not add additional weight to the vehicle like battery systems and can be refueled in lesser time than taken in recharging batteries. In fact, FCEVs are also quicker to fuel than battery-electric vehicles, which the automotive and trucking industries are navigating for shorter trips.
Navistar is targeting hydrogen FCEVs as the ultimate green transportation, and views this technology as a more efficient alternative to battery power for electric cars, embraced by many rivals as a zero-emission alternative to gasoline vehicles.
General Motors, having done decades of research and development on hydrogen fuel cells, is one of the leading names when it comes to the hydrogen fuel-cell space. The Detroit auto biggie views hydrogen fuel as the future of zero-emission renewable energy in the heavy truck market, and is overwhelmed that the above-discussed agreement will provide additional scope for its application. Per this agreement, the company will provide a line-up of zero-emission big rigs, which are more cost-effective than diesel in core segments of the industry. The deal will expand the company’s vision of a world with zero emissions from passenger vehicles to the long-haul truck market.
The partnership between these two companies will symbolize the beginning of a new era in the automotive sector. All parties will play a robust role in developing this consistent solution in their quest to revolutionize the trucking ecosystem.
GM’s Failed Deal With Nikola
This is not the first time General Motors is teaming up with a trucking company for hydrogen fuel-cell technology. Last year, General Motors was slated to enter into a deal with Nikola (NKLA - Free Report) to aid the latter in engineering and manufacturing its Badger, a fully-electric and hydrogen fuel-cell electric pick-up truck. As part of the deal, General Motors would have acquired an 11% stake worth $2 billion in Nikola as well as the right to nominate one Nikola board member in exchange for its in-kind services.
However, the deal collapsed when the short-selling firm Hindenburg Research published a report accusing Nikola of a series of fraud in showcasing its electric-vehicle technology. This was followed by Nikola founder Trevor Milton’s voluntary resignation as board chairman. General Motors eventually pulled the plug on the deal with Nikola for the Badger truck. Nonetheless, the two companies still plan on collaborating on fuel cell Class 7 and Class 8 trucks. However, the latest deal with Navistar is viewed as a much safer bet by General Motors, which is looking forward to working with the Illinois-based trucking giant.
Shares of General Motors have appreciated 46.6% in the past year compared with the industry’s rally of 314.1%.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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General Motors (GM), Navistar Team Up for Hydrogen Truck Project
General Motors (GM - Free Report) recently inked a deal with Navistar International (NAV), per which it will supply the latter with fuel-cell electric-vehicle technology for bringing more hydrogen-powered long-haul trucks on the road.
Highlights of the Deal
The collaboration between General Motors and Navistar is aimed at providing an all-inclusive one-stop solution for fleet customers seeking to buy zero-emissions hydrogen fuel cell trucks.
General Motors manufactures hydrotec fuel cells in Michigan per a joint venture with Honda (HMC - Free Report) . Per the latest deal with Navistar, General Motors will be packaging its fuel cells into power cubes. Each power cube contains more than 300 hydrogen fuel cells, along with thermal and power management systems. These are compact and easy to package into many different applications.
The Navistar fuel-cell trucks, which will be based on the company's International RH Series fuel cell electric vehicle, will each use two of the Hydrotec power cubes.
J.B. Hunt Transport (JBHT - Free Report) will to be the first customer to test the new semi trucks in a pilot program commencing by the end of 2022. The company has pledged to test the solution on dedicated routes and share crucial insights of the program. The first trucks will likely be rolled out in 2024. The companies are planning to launch a competitive solution with a powertrain capable of more than 500 miles of range and a refueling time of less than 15 minutes.
The deal also includes OneH2, a North Carolina-based hydrogen fuel cell company, which will supply its hydrogen fueling solution and will be in charge of hydrogen production, storage, delivery and safety. Per the agreement, Navistar will also take a minority interest in OneH2. The financial details of the partnership have not been disclosed yet.
Rationale Behind the Alliance
Amid the heightening climate-change concerns, there is an emphasis by key markets around the globe to restrict carbon emissions from cars and trucks, which is contributing to development of both battery-enabled and hydrogen fuel-cell electric vehicles (FCEV) that might be widely available in recent times.
Hydrogen fuel cells, which generate electricity for the truck's motors through the chemical combination of stored hydrogen and atmospheric oxygen, with the emission of only water as a by-product, have been always propagated as a green vehicle option. This is because hydrogen fuel cell powertrains do not add additional weight to the vehicle like battery systems and can be refueled in lesser time than taken in recharging batteries. In fact, FCEVs are also quicker to fuel than battery-electric vehicles, which the automotive and trucking industries are navigating for shorter trips.
Navistar is targeting hydrogen FCEVs as the ultimate green transportation, and views this technology as a more efficient alternative to battery power for electric cars, embraced by many rivals as a zero-emission alternative to gasoline vehicles.
General Motors, having done decades of research and development on hydrogen fuel cells, is one of the leading names when it comes to the hydrogen fuel-cell space. The Detroit auto biggie views hydrogen fuel as the future of zero-emission renewable energy in the heavy truck market, and is overwhelmed that the above-discussed agreement will provide additional scope for its application. Per this agreement, the company will provide a line-up of zero-emission big rigs, which are more cost-effective than diesel in core segments of the industry. The deal will expand the company’s vision of a world with zero emissions from passenger vehicles to the long-haul truck market.
The partnership between these two companies will symbolize the beginning of a new era in the automotive sector. All parties will play a robust role in developing this consistent solution in their quest to revolutionize the trucking ecosystem.
GM’s Failed Deal With Nikola
This is not the first time General Motors is teaming up with a trucking company for hydrogen fuel-cell technology. Last year, General Motors was slated to enter into a deal with Nikola (NKLA - Free Report) to aid the latter in engineering and manufacturing its Badger, a fully-electric and hydrogen fuel-cell electric pick-up truck. As part of the deal, General Motors would have acquired an 11% stake worth $2 billion in Nikola as well as the right to nominate one Nikola board member in exchange for its in-kind services.
However, the deal collapsed when the short-selling firm Hindenburg Research published a report accusing Nikola of a series of fraud in showcasing its electric-vehicle technology. This was followed by Nikola founder Trevor Milton’s voluntary resignation as board chairman. General Motors eventually pulled the plug on the deal with Nikola for the Badger truck. Nonetheless, the two companies still plan on collaborating on fuel cell Class 7 and Class 8 trucks. However, the latest deal with Navistar is viewed as a much safer bet by General Motors, which is looking forward to working with the Illinois-based trucking giant.
General Motors currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of General Motors have appreciated 46.6% in the past year compared with the industry’s rally of 314.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>