Meritor, Inc. MTOR has announced its investment in California-based electrification technologies company TransPower. Given the widespread knowledge and experience of TransPower in electric vehicles (EVs) technologies and system integration, it is expected that this investment will provide a competitive edge to Meritor in developing electrical drive systems.
The investment is in sync with the Troy, MI-based global automotive parts manufacturer and supplier’s aim to deliver efficient solutions for medium and heavy-duty EVs, backed by appropriate solutions. In fact, strong knowledge of TransPower in systems engineering and controls gels well with Meritor’s proven brand and huge experience in drivetrain products designing and manufacturing.
TransPower offers wide-ranging energy-related products and services associated with energy storage and superior clean transportation. The EV drive solutions are extensively used in commercial vehicles, manufactured by major original equipment manufacturers (OEMs). The company is also engaged in retrofitting its drive solutions into vehicle platforms.
Through this investment in TransPower, Meritor is likely to speed up the initiation of flexible electric axle platform for different drivetrain set ups, such as hybrid, full electric, single or tandem axles. Meritor’s investment in TransPower could enable large-scale manufacturing of electric drive components and systems.
Shares of Meritor outperformed the industry it belongs to over the past three months. During this time frame, shares of the company grew 11.1% against the industry’s decline of 0.8%.
Currently, Meritor carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Allison Transmission Holdings, Inc. ALSN, AB Volvo VLVLY and Wabco Holdings Inc. WBC. While Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Wabco Holdings carries 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%. Year to date, shares of the company have gained 23%.
Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have gained 58.4%.
Wabco Holdings has an expected long-term growth rate of 15%. Its shares have rallied 34.5% year to date.
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