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Cummins to Develop Plug-in Hybrid that Reduces Fuel Use

Shares of Cummins Inc. CMI gained 1.13% to close at $106.28 on Apr 8 after the company announced that it will develop a Class 6 commercial plug-in hybrid electric vehicle that can reduce fuel consumption by 50% compared to the conventional Class 6 vehicles. For this purpose, the company has received a $4.5 million grant from the U.S. Department of Energy.

Class 6 vehicles are mainly school buses or single-axle work trucks. When fully loaded, these vehicles weigh as much as 19,000–26,000 pounds. The main aim of Cummins is to develop a plug-in hybrid electric vehicle that can ensure fuel efficiency while offering improved performance.

Cummins will utilize its expertise in internal combustion engines and related products to select the engine with the best architecture for the powertrain. The engine will control the charge from the all-electric drive battery pack. The range extender will use advanced vehicle controls to integrate with the electrified powertrain and other applicable technologies.

Cummins believes that it will be able to achieve its aim of reducing fuel consumption through the use of an electrified vehicle powertrain along with an improved internal combustion engine operation and other technologies such as intelligent transportation systems and electronic braking.

Note that Cummins is joining hands with PACCAR Inc. PCAR for this project, along with representatives from the Ohio State University, the National Renewable Energy Laboratory and the Argonne National Laboratory.

Zacks Rank

Cummins currently carries a Zacks Rank #4 (Sell).

A couple of better-ranked automobile stocks include Cooper Tire & Rubber Co. CTB and Superior Industries International, Inc. SUP. Both stocks sport a Zacks Rank #1 (Strong Buy).

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PACCAR INC (PCAR): Free Stock Analysis Report
 
SUPERIOR INDS (SUP): Free Stock Analysis Report
 
CUMMINS INC (CMI): Free Stock Analysis Report
 
COOPER TIRE (CTB): Free Stock Analysis Report
 
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