Cummins Inc. ( CMI Quick Quote CMI - Free Report) is looking for steady ground in zero-emission vehicle offerings and has been making efforts to increase its outreach. Cummins recently announced the completion of the acquisition of a 50% stake in Momentum Fuel Technologies from Rush Enterprises, Inc. ( RUSHA Quick Quote RUSHA - Free Report) . The joint venture between Cummins and Rush Enterprises focuses on producing near-zero-emissions natural gas powertrains for the commercial vehicle market in North America. The newly formed entity will combine the prowess of Momentum’s compressed natural gas (CNG) fuel delivery systems and Cummins’ powertrain expertise resulting in engines with net greenhouse gas emissions at or below zero. The partnership will also offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors, servicing both the engine and the fuel delivery system. It also bodes well for customers as they will have access to extensive CNG vehicle parts and service network. Cummins is confident that the alliance will enable it to offer the highest quality, clean and efficient natural gas products, including the 15-liter natural gas engine recently announced in October. In another development, Cummins and Isuzu Motors Limited have joined forces to create a blue-print medium-duty, battery-electric truck to demonstrate in North America. The truck represents the first zero-emissions solution offered by the Isuzu Cummins Powertrain Partnership formed in May 2019. Per the arrangement, Cummins will incorporate its PowerDrive6000 into Isuzu’s F-Series truck and will regulate the truck with North American fleets. The project is expected to begin in 2022. Upon the successful demonstration and pilot phase, Isuzu will explore avenues to commercialize medium-duty, battery-electric trucks with Cummins-powered systems across North America. The project aims to steer de-carbonization initiatives for both companies and offer customers zero-emission solutions. It will also give Isuzu a platform to take forward its dedicated work in exploring next-generation power sources and newer electric powertrain technologies. Zacks Rank & Key Picks
Currently, Cummins carries a Zacks Rank #3 (Hold). CMI’s shares have lost 8.5% over the past year. The company has an expected earnings growth rate of around 23% for the current year.
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