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Daimler to Form JV With Automotive Company Geely in China

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Per Bloomberg, Daimler AG (DDAIF - Free Report) is discussing with the multinational automotive manufacturing company based in China, Geely Holding Group Co, to form a joint venture (JV) in areas of ride-hailing and car-sharing services in China. The underlying aim of this German automaker to build this JV is to challenge the mobile transportation platform, Didi Chuxing in China.

Lately, Daimler has been making huge investment in the autonomous and electric vehicle front. Earlier in this month, a partnership was formed between Daimler and Renault-Nissan for autonomous vehicles technology and mobility services.

Further, the Mercedes-Benz producer recently announced that it will begin building a battery plant in Tuscaloosa, AL. This move is in sync with the company’s $1-billion investment plan to upgrade its Alabama factory. In fact, Daimler intends to play a pivotal role in the development of e-mobility and attempts to introduce electric sports utility vehicle (SUV), the EQ.

Geely has been looking for a partner in the fields of electric and autonomous vehicle technologies. Though the partnership has not yet been formed, it looks very promising.

Year to date, shares of Daimler have underperformed the industry it belongs to. Over this time frame, shares of the company have decreased 28.1% compared with 25.3% decline recorded by the industry.

Zacks Rank & Stocks to Consider

Currently, Daimler has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Navistar International Corporation (NAV - Free Report) . While both Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Navistar has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 21.8%.

Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have risen 48.4%.

Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 52.9%.

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