Daimler Truck AG and Cummins Inc. announced in February 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.