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Daimler (DDAIF) to Introduce Twin-Purpose Autonomous Vehicle

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Daimler AG (DDAIF - Free Report) is making efforts to develop twin-purpose autonomous electric vehicle (EV) that can toggle between a passenger carrier and a delivery van.

With its two-for-one autonomous van, this German auto giant intends to outshine its rivals in pioneering the future of mobility. The new vehicle concept is likely to prop up the company’s collection of mobility services — containing both car and van sharing capabilities — by assisting users to find the quickest mode of transportation.

Due to the rapid advancement of autonomous driving technology, carmakers are putting increased emphasis on mobility services. Daimler, the maker of Mercedes-Benz, is no exception. In collaboration with Robert Bosch GmbH, it plans to test an autonomous shuttle service in California, beginning 2019, with the intention to introduce ‘robo taxis’ in 2023.

The concept of the twin-purpose vehicle consists of a chassis, with two modules that can be switched in less than two minutes. The two modules include cargo and egg-shaped minibus versions. Per an official release of the company, the idea is to meet the requirements of logistics companies and public-transport operators, which do not have many drivers and intend to use EVs more efficiently.

Over the past three months, shares of Daimler have underperformed the industry it belongs to. Over this time frame, shares of the company have declined 13.6%, whereas the industry decreased by 12.4%.


Zacks Rank & Key Picks

Daimler currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , AB Volvo (VLVLY - Free Report) and PACCAR Inc. (PCAR - Free Report) . While Fox Factory and Volvo sport a Zacks Rank #1 (Strong Buy), PACCAR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 71.2%.

AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have grown 48.9%.

PACCAR has an expected long-term growth rate of 10.8%. Shares of the company have risen 1.9% in the past year.

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