Westport Fuel Systems Inc. (WPRT - Analyst Report) announced that one of its distributors has signed a new multi-year contract with Honda Turkey to supply liquefied petroleum gas (LPG) systems for a new model of Civic Eco that is set to debut next month.
Honda (HMC - Analyst Report) has been offering LPG after-market conversions to its customers from the Turkey facility since 2011. The new Civic Eco model will be wholly integrated in the Honda Turkey plant via a delayed original equipment manufacturer ("DOEM") business model using BRC Gas Equipment's ("BRC") Sequent Plug & Drive LPG system. The Sequent Plug & Drive system, a successful LPG injection system, produced by BRC is sold to several other DOEM and OEM customers globally.
Honda began converting the Civic Sedan LPG model through a DOEM model in 2015 due to high demand and believes that the Civic Eco will also face such demand. According to an analysis conducted by Westport Fuel and the Local Chambers of Engineers in Turkey, 27% of the country’s total vehicles ran on LPG, the highest in Europe, at 2015 end. Additionally, LPG run vehicles are supported in Turkey with over 2,400 fueling stations. With the new contract, Westport Fuel aims to grow its own share in this market.
Westport Fuel currently carries a Zacks Rank #4 (Sell).
Some better-ranked auto stocks include Tata Motors Limited (TTM - Snapshot Report) and The Goodyear Tire & Rubber Company (GT - Analyst Report) .
Tata Motors has a long-term growth rate of 3.6% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has seen its estimates move north in the last 30 days. The stock sports a Zacks Rank #1.
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