WPRT - Westport Volvo form JV to advance HPDI fuel systems

2023-07-19 09:25:14 ET

Westport Fuel Systems ( NASDAQ: WPRT ) +4% pre-market Wednesday after saying it signed a letter of intent to form a joint venture with automaker Volvo that will help globalize and commercialize Westport's HPDI fuel system technology for long-haul and off-road trucking transportation.

Volvo will acquire a 45% stake in the JV for ~$28M, plus up to an additional $45M depending on the performance of the venture, while Westport ( WPRT ) contributes its HPDI assets and activities to the JV.

Westport's ( WPRT ) High Pressure Direct Injection system is touted as a cost-effective way to cut carbon emissions in trucking applications, helping trucking and off-road equipment manufacturers address the challenges of meeting regulatory requirements of Euro 7 and the U.S. Environmental Protection Agency.

While Volvo will be a key customer of the joint venture, the JV's mandate will be to enhance commercialization of HPDI through the addition of new trucking and equipment manufacturers as customer, the companies said.

More on Westport Fuel Systems:

• Financial and valuation comparison to sector peers
• Analysis: Westport Fuel Systems: Avoid On Ongoing Cash Consumption And Risk Of Near-Term Dilution
• Stock price return: Up 24% YTD, down 8.5% in the past 12 months

For further details see: