This week sees more repositioning in the face of growing interest in alternatives to traditional diesel power as a major Daimler Trucks deal with Cummins is announced. The global truck maker and the largest independent engine manufacturer, Cummins have signed a memorandum of understanding establishing a global strategic partnership for medium-duty engine systems.
The announcement also stated that other opportunities for collaboration are also being evaluated.
Under the new deal, Cummins will invest in the 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 will begin after 2025.
“We are pleased to announce this important strategic partnership with Daimler to provide the medium-duty engine systems for Daimler Trucks and Buses in global markets,” said Tom Linebarger, Chairman and CEO, Cummins. “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.”
Cummins will establish an engine plant within the current Mercedes-Benz engine facility in Mannheim, Germany. The facility will utilise existing resources to produce medium-duty engines compliant with the Euro7 emissions standard for Mercedes-Benz. Cummins has also committed to using its existing footprint and production and supply chain networks in all other regions for use in other Daimler Trucks’ brands, including those of Daimler Trucks North America.
“The memorandum of understanding between Daimler Truck and Cummins makes engine production at the Mannheim location fit for the future and at the same time strengthens our competitiveness,” said Martin Daum, Chairman of the Board of Management at Daimler Truck and member of the Board of Management at Daimler.
“With the changeover to Euro7, 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.”
Daimler has said it anticipates the partnership with Cummins will enable the company to increase and accelerate its development efforts on alternative and emerging technologies, including non-diesel engines.
The global group will focus on the further progression of zero-emission drive technologies as well as further development of commercial heavy-duty drivetrains. The production of the current medium-duty engine generation by Daimler will end with the start of production of the Cummins engines at Mannheim. In a next step, the partners say they 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 for the heavy-duty vehicle segment of Daimler Trucks and Buses will remain in the Daimler Truck portfolio. This engine family will continue to be manufactured by the production network in Mannheim and Detroit, Michigan and fitted in heavy-duty trucks.