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Legacy Automakers Drive Deeper Into Alternative Fuels

Published 13/01/2021, 03:26 am
© Reuters.
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By Christiana Sciaudone

Investing.com -- Legacy vehicle makers are charging ahead with alternative fuel options. The question is, hydrogen-fueled or electric? Take your pick.

General Motors Co (NYSE:GM). is getting into the electric cargo van business via BrightDrop, a new wholly owned company whose customers will include FedEx (NYSE:FDX). Corp. The company plans to sell electric pallet movers early this year and a similarly powered van by the end of the year. BrightDrop will also offer fleet management software and services.  

Not to be outdone, Renault (PA:RENA) is forming a 50-50 joint venture with Plug Power (NASDAQ:PLUG) to build hydrogen-fueled delivery vans in Europe. The companies plan to start production by early 2022, targeting over 30% of the fuel cell powered light commercial vehicle market in Europe. They'll also offer the hydrogen-fueling stations to supply them.     

It's the latest deal for a company that's seen its shares jump more than 800% since June as investors look for the next Tesla (NASDAQ:TSLA). It surged as much as 21% on the news, while GM rose as much as 8.8%.

 

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