Cooper Tire & Rubber Co. (CTB) has partnered with Michigan-based automotive startup Elio Motors, Inc. by signing a letter of intent. Per the deal, Cooper Tire will supply tires equipped with its low rolling resistance technology for Elio Motors’ ultra-high mileage Elio car.
Elio has a unique design with three wheels and features a three-cylinder, 55-horsepower, fuel-injected engine. The car weighs around 1,200 pounds and has a seating capacity for two.
The vehicle is scheduled to come in the market in the later part of next year and costs about $6,800. Elio intends to use vehicle components manufactured in North America for the car. Thus, Cooper Tire will manufacture all the tires to be supplied to Elio Motors in one of its U.S. plants. The car will also be manufactured in Shreveport, La.
Elio Motors is targeting a mileage of 84 miles per gallon, which will put Elio in the ultra-high mileage category. Cooper Tire’s low rolling resistance technology will help the company achieve this mileage.
Ohio-based Cooper Tire manufactures and markets tires and related products. The company has more than 60 manufacturing, sales, distribution, technical and design facilities located in 11 countries. Cooper Tire, one of the 350 large companies in America, is the ninth largest tire company in the world.
Cooper Tire currently carries a Zacks Rank #4 (Sell). Some stocks that are worth considering in the same industry include Goodyear Tire & Rubber Company (GT), Continental AG (CTTAY) and Bridgestone Corp. (BRDCY). While Continental AG carries a Zacks Rank #1 (Strong Buy), Goodyear and Bridgestone hold a Zacks Rank #2 (Buy).