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Daimler's Electric Trucks to Run on Batteries Supplied by CATL

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Daimler AG’s (DDAIF - Free Report) business arm, Daimler Trucks and Buses, recently signed an agreement with Contemporary Amperex Technology Co. Limited (“CATL’’), per which the latter will supply lithium-ion battery cell modules for Daimler’s global electric trucks, beginning 2021.

Notably, the deal includes the Freightliner eCascadia, the Mercedes-Benz eActros and the Freightliner eM2 models. In fact, development of the battery systems and installation will be carried out by Daimler at the Mercedes-Benz Mannheim plant in Germany and the Detroit plant in the United States.

CATL is a leading developer and manufacturer of lithium-ion power and energy-storage batteries. It provides highly efficient and reliable solutions to electrify commercial vehicles for the e-mobility market’s development.

The long-term partnership with CATL supports Daimler’s robust technological position as well as strengthens its global presence through shared modules. Further, Daimler’s partnership with CATL will provide the former a wide range of electric trucks for series production, beginning 2021.

Daimler formed its E-Mobility Group in 2018 and developed a global e-strategy for electric components and products across brands and segments. The E-Mobility Group develops an integrated electric architecture by maximizing synergies and optimizing investment applications. The group consults customers for making Electro mobility economically feasible, while also focusing on the Total Cost of Ownership (TCO).

In the past year, Daimler has underperformed the industry it belongs to. During the same time frame, the company’s shares depreciated 22.4% compared to the industry’s loss of 13.5%.



Zacks Rank & Key Picks

Daimler currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector are Lithia Motors, Inc. (LAD - Free Report) , General Motors Company (GM - Free Report) and SPX Corporation (SPXC - Free Report) . While Lithia Motors sports a Zacks Rank #1 (Strong Buy), General Motors and SPX carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lithia Motors has an expected earnings growth rate of 12.8% for 2019. The company’s shares have surged 55.4% over the past year.

General Motors has a projected earnings growth rate of 3.06% for the current year. The company’s shares have rallied 5.8% in a year’s time.

SPX has an estimated earnings growth rate of 14.5% for the ongoing year. Its shares have gained 16.9% over the past year.

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Daimler AG (DDAIF) - free report >>

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