Autoliv Inc. ALV recently announced that it has joined forces with POC to develop bicycle and e-bike helmets equipped with airbag technology to improve head protection gear and reduce the consequences of an impact. POC is a global leader in snow sports and cycling protection.
Autoliv and POC have been jointly working to assess the potential of using airbag technology in helmets. The airbag would function as the initial shock absorber and the underlying helmet would be the following energy absorber.
The Autoliv research team has concluded that a cycle helmet with an integrated airbag can improve protection and reduce the consequences of impacts on cyclists. The protection improvements could be achieved without compromising the design, weight or comfort of a helmet designed with integrated airbag technology. The upgrades can reduce the risk of moderate to fatal head injuries from 80% to 30% for bicyclists.
Autoliv is committed to providing world-class life-saving solutions for mobility and society. The company’s utmost concern is the safety of road users such as bicyclists and e-bike riders, who are more exposed to accidents. Hence, a collaboration with POC, which has a reputation in bicyclist safety, looks promising.
Increased environmental awareness has seen a spike in the number of bicycle riders worldwide. The growth needs to be supported by improved helmet protection, especially at higher speeds reached in e-biking. During the pre-study, the companies developed the initial concepts by advanced simulation tools and conducted correlated physical crash tests.
Autoliv has set up Mobility Safety Solutions (“MSS”) to extend its business into new market areas beyond light vehicles and occupant safety. MSS develops and manufactures mobility safety solutions such as pedestrian protection, battery cut-off switches, connected safety services and safety solutions for riders of powered two-wheelers.
Shares of ALV have lost 23.5% over the past year compared to its industry’s 47.3% decline.
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Zacks Rank & Key Picks
ALV carries a Zacks Rank #3 (Hold), currently.
Better-ranked players in the auto space include BorgWarner BWA, LKQ Corporation LKQ and Standard Motor Products SMP, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BorgWarner has an expected earnings growth rate of 24% for 2023. The Zacks Consensus Estimate for current-year earnings has been constant in the past 30 days.
BorgWarner’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. BWA pulled off a trailing four-quarter earnings surprise of 33.1%, on average. The stock has declined 29.5% over the past year.
LKQ has an expected earnings growth rate of 6.3% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 0.25% upward in the past 30 days.
LKQ’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. LKQ pulled off a trailing four-quarter earnings surprise of 23.55%, on average. The stock has fallen 2.2% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 2.2% over the past year.
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