A highly significant move on the international collaboration front has been announced by Daimler Truck AG and Cummins who have jointly announced the signing of a memorandum of understanding establishing a global strategic partnership for medium-duty engine systems.
As part of the planned strategy, Cummins will take over the development, production and delivery of medium duty engines for Daimler Trucks & Buses globally by the second half of the decade.
Martin Daum, Chairman of the Board of Management at Daimler Truck AG and a member of the Board of Management at Daimler AG says: “The memorandum of understanding between Daimler Truck AG and Cummins makes engine production at the Mannheim location fit for the future and at the same time strengthens our competitiveness.
“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.”
Commenting on the MOU, Tom Linebarger, Chairman and CEO of Cummins Inc says: “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 establish an engine plant within the Mercedes-Benz Mannheim campus, efficiently using existing resources to produce medium-duty engines compliant with the Euro VII emissions standard for Mercedes-Benz. 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.
Daimler anticipates that the partnership with Cummins will enable Daimler 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.
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 in Detroit, Michigan in the USA and will be fitted in heavy-duty trucks, in touring coaches as well as in third-party products worldwide.