Daimler Truck AG and Cummins Inc. Have Signed Global Framework Agreement for Cooperation in Medium-duty Commercial Vehicle Engines
- The two companies announced a global strategic partnership for medium-duty engines.
- Cummins Inc. will set up an engine production facility on the site of the Mercedes-Benz plant in Mannheim for production of medium-duty engines that meet Euro VII emissions for Daimler Trucks & Buses starting in the second half of the decade.
- Cummins Inc. will supply medium-duty engines for Daimler Trucks & Buses vehicles worldwide in the future.
Daimler Truck AG and U.S.-based global power leader and engine manufacturer Cummins Inc. (NYSE: CMI) announced in February that they would enter into a global strategic partnership for medium-duty engines. The details of the agreement have been established and the framework agreement has been signed by both companies.
Under the strategic partnership, Cummins will invest in the further development of the medium-duty engine platform and its global production and delivery starting in the second half of the decade for Daimler Trucks & Buses. Daimler Truck AG will no longer invest its own funds in the further development of its medium-duty engines for the Euro VII emissions standard.
“We are very pleased that we were able to conclude the negotiations for a framework agreement with Cummins so quickly. The cooperation makes engine production at the Mannheim location ready for the future and strengthens our competitiveness at the same time. We will develop joint solutions, always keeping the interests of our customers, employees and the company in mind,” said Martin Daum, Chairman of the Board of Management at Daimler Truck AG and a member of the Board of Management at Daimler AG
“We are pleased to sign this agreement as we move forward in collaboration to provide the medium duty engine systems for Daimler Trucks and Buses in global markets,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “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.”
Cummins Inc. will set up an engine production facility on the site of the Mercedes-Benz Mannheim, Germany plant for local production of medium-duty engines that meet the Euro VII emissions standard for Daimler Trucks and Buses. Production is expected to start in the second half of the decade.
With this strategic partnership, Daimler Truck AG and Cummins will help maintain jobs at the Mannheim location. Cummins will use its existing footprint, strong production and supply chain networks in other regions to be successful in Daimler Trucks’ brands, including those of Daimler Trucks North America. Cummins has continued to grow its presence and footprint across Europe as it expands its product portfolio for customers ranging from advanced diesel, natural gas, electrified power, hybrids and hydrogen fuel cell powertrains.
As part of the strategic partnership, Daimler Truck AG and Cummins Inc. will continue to evaluate additional opportunities for cooperation.
The February 2021 press release with further details can be found here.
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Daimler Truck at a Glance
The Daimler Truck AG is one of the worldʼs largest commercial vehicle manufacturers, with more than 35 primary locations around the world and approximately 100,000 employees. The company brings together seven vehicle brands under one roof: Mercedes-Benz (light, medium and heavy trucks as well as city, intercity and touring coaches) and Setra (intercity, long-distance and premium coaches) are our traditional European brands; our U.S. brands Freightliner Trucks (trucks in weight classes 5 to 8 for a wide range of commercial vehicle applications), Western Star (heavy trucks for specialized and long-haul transports) and Thomas Built Buses (light to medium-duty buses); and our Asian brands Bharat Benz, based in Chennai, India (trucks in the weight classes 10 to 55 t and medium and heavy-duty buses) and FUSO with its headquarters in Japan (trucks and buses for Asia, the Middle East, Africa, Europe and Latin America). This allows the Daimler Truck AG to offer its customers around the globe a broad spectrum of commercial vehicles, ranging from minibuses to heavy-duty trucks for special-purpose transport applications – in short: products and solutions for everyone who keeps the world moving. Gottlieb Daimler and Carl Benz laid the foundation for the modern transport industry 125 years ago. Over the past decades, Daimlerʼs truck and bus divisions have consistently set standards for the entire transportation industry – in terms of safety, fuel efficiency and driver and passenger comfort. It is now time for the next evolutionary step: emission-free, automated and connected driving. Daimler Trucks & Buses is working to bring these important technologies to high-volume series production, across brands, divisions and regions. In this way the company intends to take a major step closer to realizing its vision of CO2-neutral transport and accident-free driving whilst also contributing to the sustainability of global goods and passenger transport. In 2020, a total of 378,500 trucks and buses were delivered. In 2020 the revenue of the individual areas of business amounted to € 35 billion for the Daimler Truck AG. The adjusted EBIT was € 678 million for the Daimler Truck AG.
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Uta Leitner, +49 7 11 17-53058, firstname.lastname@example.org
Jon Mills, Cummins, Director External Communications, +1 317-658-4540, email@example.com
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