REE Appoints Roush as the US Contract Manufacturer for P7

REE Automotive Ltd. REE, a commercial EV developer and manufacturer, has chosen Roush Industries, an innovative vehicle contract manufacturer, to assemble its P7 vehicles at Roush’s Detroit-area facility. REE will continue to produce its proprietary REEcorner technology at its Coventry Integration Center in the United Kingdom. Roush's team, with expertise in design, engineering and manufacturing, will ensure a scalable assembly process for REE. A joint team from REE and Motherson will handle quality assurance, logistics and testing at the site.

As the U.S. contract manufacturer for the P7 line, Roush will assemble the full vehicles according to REE's specifications at the Detroit site, designed to produce up to 5,000 trucks annually. Motherson, a key global automotive supplier, will oversee the global supply chain and logistics with a focus on cost reduction, improvement in unit economics and margin enhancement.

REE’s P7 electric commercial trucks are built using four REEcorners, which incorporate REE’s innovative x-by-wire technology. The REEcorners integrate key components between the chassis and wheels to create a completely flat electric chassis that provides up to 35% more interior space for passengers, cargo and batteries. Vehicles built on the P7 chassis have the lowest step-in height in the industry, are ready for autonomous driving and can be powered by either batteries or fuel cells.

The P7 is supported by a network of 78 service and sales locations through 24 authorized dealers across North America with potential access to more than 200 fleets in the United States and Canada.

Per Josh Tech, chief operating officer of REE, the company wants to deliver trucks as soon as possible without compromising quality. The partnership with Roush allows REE to focus on its core technology while leveraging Roush’s extensive experience in engineering and manufacturing, which spans from NASCAR to EVs and lunar vehicles, to optimize production and speed up time to market.

REE’s Zacks Rank & Key Picks

REE currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Blue Bird Corporation BLBD and Douglas Dynamics, Inc. PLOW, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.

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