Volkswagen AG (VWAGY - Free Report) and Ford Motor Company (F - Free Report) reached an outline agreement to share self-driving and electric vehicle technologies, per Reuters. The agreement is likely to deepen the existing partnership between these two major auto giants to produce pickup trucks.
Volkswagen is likely to discuss this agreement on Jul 11, 2019. The company will likely share a modular electric car (“MEB”) platform with Ford.
The global automotive industry is in a transitional phase. However, a rapid move toward new autonomous and electric vehicles may have dangerous implications for automakers. Future uncertainties and huge pressure prompted automakers to cooperate.
Importantly, in January 2019, Ford and Volkswagen made the announcement to cooperate on the production of vans and pickup trucks. Now, these two automakers are trying to form an agreement for the development of autonomous vehicles and production of electric cars.
In the past six months, Ford stock has rallied 21.8% while Volkswagen grew 5.5%.
Zacks Rank & Key Picks
While Ford currently carries a Zacks Rank #2 (Buy), Volkswagen has a Zacks Rank #3 (Hold).
A few top-ranked stocks in the auto space are PACCAR Inc (PCAR - Free Report) and AutoZone, Inc (AZO - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR has an expected long-term growth rate of 8.4%. In the past six months, shares of the company have gained 18.6%.
AutoZone has an expected long-term growth rate of 12.2%. In the past six months, shares of the company have rallied 39.3%.
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