Cummins and Daimler form strategic partnership
Daimler Truck AG and engine manufacturer Cummins have signed a memorandum of understanding establishing a global strategic partnership for medium duty engine systems.
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.
Cummins will establish an engine plant within the Mercedes-Benz Mannheim campus, where it will produce medium duty engines compliant with the Euro VII emissions standard for Mercedes-Benz.
The partnership is expected to enable Daimler to increase and accelerate its development efforts on alternative and emerging technologies, including non-diesel engines. 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 and coaches, as well as in third-party products worldwide.
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 VII, 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.”
Tom Linebarger, Chairman and CEO, Cummins, said: “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.”