Cummins Inc. (CMI - Free Report) entered a partnership with Isuzu Motors Limited to evaluate and develop new diesel and diesel-based powertrains. The Isuzu Cummins Powertrain Partnership agreement is a formal business structure, under which the companies will leverage their combined technical strength to develop powertrains for customers across the globe. In 2018, the companies signed a Letter of Intent to assess opportunities on the power-source business.
Cummins and Isuzu committed to form a coalition board and dedicate skilled workforce to explore possible prospects in product development, procurement and manufacturing of powertrains. The collaboration will aid the companies to combine their strengths and expand the product portfolio.
The alliance believes that diesel engines will continue to be a vital choice for commercial vehicles and industrial applications. The widening portfolio with diesel-related products is expected to drive global growth for Cummins and Isuzu.
Cummins Inc. Price and Consensus
Apart from launching products, Cummins partners with companies in order to witness high returns. Apart from Isuzu, the company collaborated with Hyundai to develop an electric powered mini excavator.
Over the past three months, shares of Cummins have gained 3.1% against the industry’s decline of 2.8%.
Zacks Rank & Other Key Picks
Cummins currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader auto sector are Fox Factory Holdings Corporation (FOXF - Free Report) , Ford Motor Company (F - Free Report) and AB Volvo (VLVLY - Free Report) . Fox Factory and Ford currently carry a Zacks Rank #2 while Volvo sports a Zacks Rank #1 (Strong 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 16.4%. The stock has gained 7.4% in the past three months.
Ford has an expected long-term growth rate of 7.3%. The stock has gained 11.6% in the past three months.
Volvo has an expected long-term growth rate of 5%. Over the past six months, shares of the company have gained 5.4%.
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