General Motors (GM), Magna Deepen Ties for Battery Enclosures

General Motors GM expands its partnership with Magna International MGA, which has already been producing GMC Hummer EV battery enclosures, to produce battery enclosures for its new Chevy Silverado EV in Michigan. Magna is one of the largest auto suppliers in the world. It offers a variety of products, ranging from powertrains to complete vehicle manufacturing.

Magna set up its St. Clair, MI facility in 2021 to tap the opportunities created by the EV revolution. It produced battery enclosures for Hummer EV in the plant. The battery enclosures for the new Chevrolet Silverado EV will be produced at the same facility. Also, the Silverado EV is expected to enter production stage later this year and will release in different variants.

After a long wait, GM finally unleashed two Chevrolet Silverado EV models, which it also likes to call “category-defying, boundary-breaking game changers,” namely the Work Truck and RST editions.

The Silverado EV WT comes with 510 horsepower and an 8,000 lbs towing capacity and costs around $41,595. The optional features will include up to 20,000 lbs. The future variant will include a panoramic sunroof, multi-flex midgate, and wide-open watts mode and will cost around $50,000 to $80,000.

The launch of the Silverado EV offers GM a glimmer of hope. With this new lineup, Auto Giant aspires to overshadow the performance of its top competitors, such as the Ford F-150 Lightning and Rivian R1T, to capture the market. Silverado EV will also be competing with the most-awaited Tesla Cybertuck and RAM 1500 REV in the near future.

With the fierce competition that is apparent over here, the Silverado EV may experience a bumpy ride.

Zacks Rank & Key Picks

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

A few top-ranked players in the auto space include Mercedes-Benz Group AG MBGAF and Modine Manufacturing MOD, each sporting a Zacks Rank #1 (Strong Buy).

Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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