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Navistar & Cummins to Jointly Develop Advanced Technologies

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Cummins Inc. (CMI - Free Report) and Navistar International Corporation have jointly announced the extension of their long-term deal through the next two emission cycles. Per the deal, Cummins will provide medium-sized and heavy-duty large-bore engines for foreign trucks and IC buses to Navistar in the United States and Canada.

The latest deal will provide Navistar's foreign customers the most economical and fuel-efficient engines in the industry, in combination with the company’s proprietary engine. Navistar would now invest less on compliance with future pollution standards.

Reportedly, Navistar’s international LT Series trucks, paired with the Cummins X15TM Efficiency Series and Eaton Cummins Endurant HD transmission, provide the highest fuel economy and better uptime to consumers.

Additionally, this partnership would enable both firms to make investments in current technologies for research and development, as well as open up opportunities to invest in advanced technologies.

Notably, Cummins has provided Navistar with motors and transmissions for more than 80 years. Its B6.7 and L9 engines will continue to power the International MV and HV Series trucks, as well as Navistar’s IC Bus CE and RE Series school buses.

Meanwhile, with this year's launch of the 2021 Greenhouse Gas complaint X15 Performance Series, Cummins is providing the most reliable and extremely fuel-efficient 15 liter product to international truck consumers.

Zacks Rank & Stocks to Consider

While Cummins currently carries a Zacks Rank #2 (Buy), Navistar is a Zacks Ranked #3 (Hold) stock. Shares of Cummins and Navistar have appreciated 18.5% and 16.8%, respectively, year to date.

Better-ranked stocks in the auto sector include AutoNation (AN - Free Report) and LCI Industries (LCII - Free Report) , both sporting a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AutoNation have rallied 12.3%, year to date, compared with the industry’s gain of 10%.

Shares of LCI Industries have appreciated 17.5%, year to date, as against the industry’s decline of 3.4%.

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