Penske Truck Leasing, a unit of Penske Automotive Group, Inc. (NYSE: PAG), has placed an order for 750 electric E-Transit cargo vans from Ford Motor Co. (NYSE: F), a report published by Reuters said.
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Ford is expected to deliver the first batch of the EVs in the next few weeks, and Penske plans to introduce these vehicles in Southern California first. Further, the transportation services company intends to make the vehicles available across the U.S. in a phased manner later in 2022.
Art Vallely, the President of Penske Truck Leasing, said “These new vehicles will be offered both as a rental and full-service lease option for the company’s customers.”
In the long-term, Penske aims to expand its fleet to include more Ford E-Transit vans for use in its rental, and leasing locations in North America.
These E-Transit vans come with a range of 126 miles and are available in eight variations.
About Penske Automotive
Headquartered in Michigan, Penske Automotive distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services. It also operates automotive and commercial truck dealerships in the U.S., Canada, and Western Europe.
Stock Rating
Based on one Buy, one Hold and one Sell, Penske Automotive has a Hold consensus rating. PAG’s average price target of $108.33 implies 11.4% upside potential from current levels. Shares have gained 14.6% over the past year.
Conclusion
Following DHL, FedEx (NYSE: FDX) and United Parcel Service (NYSE: UPS), Penske’s move seems to be strategic to its net-zero vehicle emissions target.
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