DAIMLER AND CUMMINS COLLABORATE ON MEDIUM-DUTY ENGINES
Daimler Truck AG and Cummins Inc. have signed a memorandum of understanding to establish a global strategic partnership for medium-duty engine systems, with other opportunities for collaboration also being evaluated.
As part of the planned strategic partnership, Cummins will invest in the further development of medium-duty engine systems for Daimler Trucks and Buses and the global production and delivery of medium-duty engines by Cummins for Daimler Trucks and Buses beginning in the second half of the decade.
Daimler anticipates the partnership with Cummins will enable it to increase and accelerate its development efforts on alternative and emerging technologies, including non-diesel engines. In the future, Daimler Truck AG will focus on the further progression of zero-emission drive technologies as well as further development of commercial heavy-duty drivetrains.
Martin Daum, chairman of the board of management at Daimler Truck AG and a member of the board of management at Daimler AG, said: “With the changeover to Euro 7, we would have to invest considerable resources in the further development of our medium-duty engines. We are now freeing up these funds to focus them on the technologies that are crucial to our long-term corporate success in the transformation of our industry.”
With this strategic partnership, Daimler Truck AG and Cummins will help maintain employment at the Mannheim plant. Cummins will use its existing footprint and strong production and supply chain networks in all other regions for use in other Daimler Trucks’ brands, including those of Daimler Trucks North America.
Cummins will establish an engine plant within the Mercedes-Benz Mannheim campus, efficiently utilising existing resources to produce medium-duty engines compliant with the Euro 7 emissions standard for Mercedes-Benz and ensuring continued joint success in the medium-duty vehicle segment.
Tom Linebarger, chairman
and CEO, Cummins Inc., added: “Our partnership is a terrific opportunity for both companies to be more competitive, drive global innovation, expand offerings to customers and reduce emissions. We are looking forward to working with Daimler on this and exploring other potential opportunities to grow our respective companies. As the leading independent global power solutions provider, Cummins is committed to ensuring any customer anywhere has the right solution by offering them a broad range of power solutions from advanced diesel, near-zero natural gas, fully electric, hydrogen and other technologies.”
The production of the current medium-duty engine generation (MDEG) by Daimler Truck AG will end with the start of production of the Cummins engines at Mannheim. In a next step, the partners will evaluate a broader global strategic cooperation through identifying potential synergies in areas such as powertrain components and engine system components.
The Daimler heavy-duty engine platform (HDEP) for the heavy-duty vehicle segment of Daimler Trucks and Buses will remain in the Daimler Truck AG portfolio. The HDEP engine family will continue to be manufactured by the global production network in Mannheim and Detroit, Michigan, and fitted in heavy-duty trucks, touring coaches and third-party products worldwide.