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Cummins to Offer Electrified Solutions for KAMAZ's Vehicles

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Cummins Inc. (CMI - Free Report) has announced that it signed a Memorandum of Understanding (MOU) with KAMAZ PTC, a Russian manufacturer of industrial and commercial vehicles. Per the agreement, Cummins will develop electrified power solutions for KAMAZ’s new line of battery-powered vehicles.

Cummins will develop and supply high-voltage fully-electric powertrain prototypes, along with applications, for KAMAZ’s buses and medium-range delivery trucks. Additionally, Cummins will design hybrid transmission prototype for KAMAZ’s heavy-duty trucks. KAMAZ’s proven electrified portfolio of vehicles will aid Cummins in offering electrified power solutions to customers.

The supplied prototypes will be tested on KAMAZ’s city buses, medium-range delivery trucks and heavy-duty trucks. After completion of the test and certification, the companies will look at the potential market size and express viewpoint for further collaboration.

Cummins Inc. Price and Consensus

 

This new partnership is in sync with Cummins’ recent launches. The company showcased its PowerDrive system, an advanced set of plug-in hybrid electric powertrain solutions for light, medium and heavy-duty applications. The new system will add to its diverse portfolio, consisting of low emissions and fuel-efficient power solutions.

However, this is not the first partnership that the companies are venturing into with each other. Earlier, the two companies have partnered in a joint venture, which is more than a decade old. The existing 50/50 joint venture, known as Cummins KAMA, manufactures Cummins’ engines of ISB, and ISL series since 2006 and 2017, respectively.

Price Performance

In the past three months, Cummins’ stock has gained 12.6%, outperforming 2.8% decrease recorded by the sector it belongs to.

 



Zacks Rank & Key Picks

Cummins currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include PACCAR Inc. (PCAR - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 16.1%.

Honda has an expected long-term growth rate of 3%. Shares of the company have increased 2.8% in the past three months.

Allison Transmission has an expected long-term growth rate of 10%. Over the past three months, shares of the company have gained 32.3%.

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