In a big development, General Motors Company (GM - Free Report) and Honda Motor Co., Ltd. (HMC - Free Report) have signed an agreement to work together to develop batteries for electric vehicles (EVs), mainly for the North American market. This agreement will take into account new advanced battery components — including the cell and module — in turn, promoting plans of both auto majors to move to all-electric vehicles in the future. The companies will come together to save costs, using General Motors’ next-generation battery system.
General Motors and Honda already work in tandem on zero-emission fuel cell vehicles. In fact, these companies have formed the industry’s first manufacturing joint venture to produce an advanced hydrogen fuel cell system by 2020. The integrated development teams are working to deliver a more affordable commercial solution for fuel cell and hydrogen storage systems.
Beside these ongoing joint developments and production of fuel cells, the latest battery component collaboration will enable both automakers to take a step toward all EVs.
While General Motors currently carries a Zacks Rank #2 (Buy), Honda has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors and Honda have an expected long-term growth rate of 5.5% and 4.1%, respectively.
A couple of better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank # 1.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 11.6% over the past year.
Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 12.2%.
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